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

Zoetis (NYSE:ZTS) released its quarterly earnings data on Thursday. The company reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.85 by $0.02, FiscalAI reports. The firm had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.50 billion. Zoetis had a return on equity of 70.95% and a net margin of 27.49%.The firm’s revenue was down .2% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.76 earnings per share. 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 ZTS traded down $4.74 during trading hours on Friday, reaching $72.53. 12,770,194 shares of the company traded hands, compared to its average volume of 6,453,276. The stock’s fifty day moving average is $76.66 and its 200 day moving average is $100.75. The stock has a market cap of $30.41 billion, a P/E ratio of 11.95, a price-to-earnings-growth ratio of 1.34 and a beta of 0.74. The company has a debt-to-equity ratio of 2.80, a quick ratio of 1.91 and a current ratio of 3.15. Zoetis has a 1-year low of $71.47 and a 1-year high of $160.48.

Zoetis Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, July 20th will be issued 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 payout ratio is presently 35.16%.

Zoetis News Roundup

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

Insider Buying and Selling

In other news, Director Paul Bisaro bought 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average cost of $75.88 per share, with a total value of $151,760.00. Following the completion of the transaction, the director directly owned 27,862 shares in the company, valued at $2,114,168.56. This represents a 7.73% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael B. Mccallister purchased 3,000 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were purchased at an average price of $77.76 per share, for a total transaction of $233,280.00. Following the completion of the purchase, the director directly owned 24,524 shares of the company’s stock, valued at approximately $1,906,986.24. This trade represents a 13.94% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 11,650 shares of company stock valued at $886,384 over the last three months. 0.22% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ZTS. Pinnacle Financial Partners Inc. grew its holdings in shares of Zoetis by 34.6% in the 3rd quarter. Pinnacle Financial Partners Inc. now owns 62,531 shares of the company’s stock worth $9,150,000 after purchasing an additional 16,080 shares during the last quarter. Brighton Jones LLC lifted its holdings in Zoetis by 180.4% during the 4th quarter. Brighton Jones LLC now owns 4,629 shares of the company’s stock valued at $754,000 after purchasing an additional 2,978 shares during the last quarter. Colter Lewis Investment Partners LLC bought a new position in Zoetis during the 4th quarter valued at about $205,000. Opal Capital LLC acquired a new position in Zoetis in the fourth quarter valued at about $215,000. Finally, OpenArc Corporate Advisory LLC bought a new stake in Zoetis during the fourth quarter worth about $202,000. 92.80% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have recently commented on ZTS shares. JPMorgan Chase & Co. dropped their price target on shares of Zoetis from $130.00 to $115.00 and set an “overweight” rating on the stock in a research note on Friday. HSBC reduced their price objective on shares of Zoetis from $140.00 to $95.00 and set a “buy” rating for the company in a research note on Monday, July 6th. Argus reiterated a “hold” rating on shares of Zoetis in a report on Wednesday, May 27th. Weiss Ratings lowered Zoetis from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, June 12th. Finally, UBS Group reduced their price target on Zoetis from $85.00 to $80.00 and set a “neutral” rating for the company in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Zoetis has a consensus rating of “Hold” and a consensus price target of $115.50.

About Zoetis

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.