Zoetis (NYSE:ZTS) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Zoetis (NYSE:ZTS) released its quarterly earnings data on Thursday. The company reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.85 by $0.02, FiscalAI reports. The company had revenue of $2.47 billion during the quarter, compared to analyst estimates of $2.50 billion. Zoetis had a net margin of 27.80% and a return on equity of 66.85%. Zoetis’s revenue for the quarter was down .2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.76 EPS. Zoetis updated its FY 2026 guidance to 6.150-6.250 EPS.

Here are the key takeaways from Zoetis’ conference call:

• Zoetis lowered its 2026 outlook, now expecting organic revenue to decline 3%–1% and adjusted net income to decline 9%–5%; adjusted diluted EPS guidance was reduced to $6.15–$6.25.
• Second-quarter results fell short of expectations, with revenue down 1% organically and adjusted net income down 2%. U.S. revenue declined 7%, while companion animal revenue fell 6%, led by a 16% decline in key dermatology and continued pressure in parasiticides and canine OA pain.
• Management is increasing targeted rebates, promotions, cross-portfolio discounts, and point-of-sale investments to defend volume and market share, particularly in dermatology and U.S. parasiticides. These actions are expected to reduce net price realization, with full-year pricing now ranging from approximately flat to down 2% depending on performance.
• Livestock revenue grew 11% and companion animal diagnostics grew 12%, providing portfolio diversification and offsetting some companion animal weakness. Management expects livestock’s underlying growth to remain in the mid- to high-single digits, although second-quarter U.S. livestock growth benefited from transitory screwworm-related demand and supply timing.
• Zoetis is pursuing cost and productivity measures while continuing to fund R&D and its innovation pipeline, repurchased more than $550 million of shares in the quarter, and highlighted potential growth from long-acting Cytopoint, Lenivia, Portela, and Vetscan OmniMax.

Zoetis Stock Performance

Shares of NYSE:ZTS traded down $4.74 during mid-day trading on Friday, reaching $72.53. The company had a trading volume of 12,770,194 shares, compared to its average volume of 5,795,663. The company has a current ratio of 3.15, a quick ratio of 1.91 and a debt-to-equity ratio of 2.80. The firm has a market cap of $30.41 billion, a price-to-earnings ratio of 12.03, a PEG ratio of 1.16 and a beta of 0.74. The company’s 50-day moving average price is $76.66 and its 200-day moving average price is $100.75. Zoetis has a one year low of $71.47 and a one year high of $160.48.

Zoetis Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, July 20th will be paid a dividend of $0.53 per share. The ex-dividend date is Monday, July 20th. This represents a $2.12 annualized dividend and a dividend yield of 2.9%. Zoetis’s dividend payout ratio (DPR) is presently 35.16%.

Analysts Set New Price Targets

ZTS has been the topic of a number of analyst reports. TD Cowen cut their price objective on shares of Zoetis from $150.00 to $104.00 and set a “buy” rating on the stock in a report on Tuesday, June 30th. William Blair reissued a “market perform” rating on shares of Zoetis in a research report on Thursday. Argus restated a “hold” rating on shares of Zoetis in a research note on Wednesday, May 27th. Morgan Stanley set a $85.00 price target on Zoetis in a research report on Friday. Finally, Wall Street Zen downgraded Zoetis from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. Seven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $115.50.

Insider Buying and Selling at Zoetis

In other news, Director Paul Bisaro acquired 2,000 shares of Zoetis stock in a transaction on Wednesday, May 13th. The stock was acquired at an average cost of $75.88 per share, with a total value of $151,760.00. Following the completion of the acquisition, the director owned 27,862 shares in the company, valued at approximately $2,114,168.56. This trade represents a 7.73% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Frank A. Damelio bought 6,650 shares of the firm’s stock in a transaction on Wednesday, May 13th. The stock was purchased at an average cost of $75.39 per share, with a total value of $501,343.50. Following the completion of the transaction, the director directly owned 21,458 shares of the company’s stock, valued at approximately $1,617,718.62. The trade was a 44.91% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders bought 11,650 shares of company stock valued at $886,384. Company insiders own 0.22% of the company’s stock.

Institutional Investors Weigh In On Zoetis

Several large investors have recently added to or reduced their stakes in ZTS. Prosperity Bancshares Inc bought a new position in Zoetis during the fourth quarter worth about $25,000. Intesa Sanpaolo Wealth Management purchased a new position in shares of Zoetis in the fourth quarter worth about $42,000. DV Equities LLC bought a new stake in shares of Zoetis in the fourth quarter valued at approximately $77,000. Bellevue Group AG raised its position in shares of Zoetis by 32.7% in the third quarter. Bellevue Group AG now owns 872 shares of the company’s stock valued at $128,000 after purchasing an additional 215 shares during the period. Finally, Newbridge Financial Services Group Inc. lifted its stake in shares of Zoetis by 23.7% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 1,145 shares of the company’s stock valued at $168,000 after buying an additional 219 shares in the last quarter. Hedge funds and other institutional investors own 92.80% of the company’s stock.

Trending Headlines about Zoetis

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Zoetis reported second-quarter adjusted earnings of $1.87 per share, above the $1.84–$1.85 analyst consensus and up from $1.76 a year earlier. The earnings beat provides some support for the stock. Zoetis Surpasses Q2 Earnings Estimates
• Positive Sentiment: JPMorgan lowered its price target from $130 to $115 but maintained an Overweight rating, implying substantial potential upside from recent levels. The target reduction reflects more conservative estimates rather than a bearish long-term view.
• Neutral Sentiment: Zoetis appointed James “Jay” Saccaro as executive vice president and chief financial officer, with the announcement also describing an expanded finance and operating leadership role. The change may improve execution, but its near-term effect on results is unclear. Zoetis Appoints Jay Saccaro
• Negative Sentiment: Second-quarter revenue was $2.47 billion, below the $2.50 billion consensus and essentially flat year over year. Management cited weaker veterinary traffic, customer price sensitivity and competitive pressure in companion-animal products, with promotions being used to defend market share. ZTS Q2 Earnings Call Flags Deeper Companion Animal Pressure
• Negative Sentiment: Zoetis cut fiscal 2026 guidance to adjusted EPS of $6.15–$6.25 from expectations near $6.87, and revenue guidance to $9.1–$9.3 billion versus consensus of roughly $9.8 billion. The outlook reduction is the primary reason the stock has declined despite the quarterly earnings beat. Zoetis Q2 Earnings Beat Estimates, Revenues Miss, 2026 View Cut

Zoetis Company Profile

Zoetis Inc (NYSE: ZTS) is a global animal health company that develops, manufactures and markets a broad portfolio of products and services for companion animals and livestock. The company’s offerings include pharmaceuticals, vaccines and biologics, parasiticides and anti-infectives, as well as diagnostic instruments, consumables and laboratory testing services. Zoetis serves the veterinary community, livestock producers and other animal-health customers with products designed to prevent, detect and treat disease and to support animal productivity and welfare.

Zoetis traces its roots to the animal health business of Pfizer and became an independent, publicly traded company following a 2013 separation and initial public offering.