Zoetis (NYSE:ZTS) Announces Earnings Results, Beats Expectations By $0.24 EPS

Zoetis (NYSE:ZTS) issued its quarterly earnings data on Thursday. The company reported $1.75 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.24, FiscalAI reports. Zoetis had a net margin of 27.49% and a return on equity of 74.89%. The firm had revenue of $2.39 billion for the quarter, compared to analysts’ expectations of $2.30 billion. During the same quarter in the prior year, the business earned $1.70 EPS. The business’s quarterly revenue was down 1.3% on a year-over-year basis.

Here are the key takeaways from Zoetis’ conference call:

• Q3 revenue fell 1% to $2.4 billion, while adjusted net income declined 7%. Adjusted EPS rose 1% to $1.75, helped by share repurchases.
• Companion animal revenue declined 5%, with key dermatology down 16% amid competition, softer clinic visits, and affordability pressures. Promotions slowed U.S. dermatology share loss, but did not stop it.
• Livestock revenue grew 7% on broad-based demand, and companion animal diagnostics rose 13%, providing areas of strength amid weakness in core pet-care franchises.
• Zoetis narrowed its 2026 revenue outlook to an organic decline of 1%–2% and raised adjusted net income guidance to $2.60–$2.64 billion and adjusted EPS guidance to $6.25–$6.35.
• Management said it will plan prudently for 2027, assuming no improvement in macro conditions or pet-owner spending and expecting competitive pressures to persist. Upcoming launches are expected to contribute modestly in 2027, with greater impact later and into 2028.

Zoetis Stock Performance

Shares of ZTS traded down $2.61 during trading hours on Friday, reaching $79.50. 6,023,502 shares of the company traded hands, compared to its average volume of 3,857,472. The stock has a market capitalization of $32.85 billion, a P/E ratio of 12.64, a P/E/G ratio of 1.23 and a beta of 0.67. The company has a quick ratio of 1.84, a current ratio of 3.08 and a debt-to-equity ratio of 2.87. The business has a fifty day moving average price of $75.68 and a 200-day moving average price of $92.60. Zoetis has a 12-month low of $68.77 and a 12-month high of $132.49.

Zoetis Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Friday, October 30th will be given a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Friday, October 30th. Zoetis’s payout ratio is currently 34.93%.

Analyst Ratings Changes

ZTS has been the subject of a number of analyst reports. Weiss Ratings upgraded Zoetis from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, October 29th. BTIG Research dropped coverage on Zoetis in a research report on Friday, October 30th. They set a “buy” rating and a $200.00 price objective on the stock. Morgan Stanley cut their price objective on Zoetis from $85.00 to $82.00 and set an “overweight” rating for the company in a research note on Thursday, October 29th. Cantor Fitzgerald set a $94.00 target price on shares of Zoetis in a report on Tuesday, August 25th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Zoetis from $130.00 to $115.00 and set an “overweight” rating for the company in a report on Friday, August 7th. Eight analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $101.25.

Zoetis News Roundup

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Adjusted EPS of $1.75 topped the $1.51 consensus, while revenue of $2.39 billion exceeded expectations of $2.30 billion. Zoetis also raised its full-year 2026 profit outlook. Zoetis Lifts Annual Outlook While Braces For Cautious Pet Economy
• Positive Sentiment: Livestock revenue grew 7% to $797 million, helping offset softness in companion-animal products. Jefferies also raised its price target to $85 from $83. Zoetis: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Investors appear focused on ongoing pressure in the pet-health business: owners are cutting back on veterinary visits, and Zoetis is taking a cautious view of 2027. Competitive pressures and margin headwinds also weigh on the outlook. Zoetis plans cautiously for 2027 as pet owners cut back on vet visits, shares fall ZTS Q3 2026 deep dive: Competitive pressures and margin headwinds weigh on outlook
• Negative Sentiment: Despite beating estimates, quarterly revenue declined 1.3% year over year, reinforcing concerns that strength in livestock may not fully offset weaker companion-animal demand. Zoetis reports third-quarter results

About Zoetis

Zoetis Inc is a global animal health company that develops, manufactures and markets medicines, vaccines, diagnostics, genetic products and related services for animals. Its offerings support the prevention, diagnosis and treatment of disease in both companion animals, including dogs, cats and horses, and livestock such as cattle, swine, poultry and fish.

The company’s product portfolio includes prescription medicines, parasiticides, vaccines, veterinary diagnostics and animal genetics.