Zoetis (NYSE:ZTS) Releases Earnings Results, Misses Estimates By $0.07 EPS

Zoetis (NYSE:ZTS) issued its earnings results on Thursday. The company reported $1.53 EPS for the quarter, missing analysts’ consensus estimates of $1.60 by ($0.07), FiscalAI reports. The firm had revenue of $2.26 billion during the quarter, compared to analyst estimates of $2.30 billion. Zoetis had a net margin of 27.80% and a return on equity of 61.97%. The business’s revenue for the quarter was up 2.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.48 earnings per share. Zoetis updated its FY 2026 guidance to 6.850-7.000 EPS.

Here are the key takeaways from Zoetis’ conference call:

• On an organic operational basis Q1 2026 revenue was flat and adjusted net income grew ~1%, with international +10% while the U.S. declined 8% — livestock up ~12% but companion animal revenue down ~4%.
• Companion-animal weakness was driven by higher clinic pricing, lower clinic traffic, greater pet-owner price sensitivity and intensified competition (notably in dermatology and parasiticides), plus generic pressure on Convenia and Cerenia.
• Management is taking decisive actions — a comprehensive cost and productivity program, sharpened commercial execution (DTC, point-of-sale affordability/loyalty, clinic engagement), faster science-to-scale launches (e.g., long-acting VABs, Convenia RTU) and the Neogen animal genomics acquisition — supported by a pipeline of 12 potential blockbusters.
• Updated FY 2026 guidance calls for 2%–5% organic operational revenue growth and 2%–6% adjusted net income growth; fiscal-year alignment shifted roughly $100M between Q4 2025 and Q1 2026 and removed an expected ~200–250 bps tailwind to growth.

Zoetis Price Performance

Zoetis stock traded down $4.51 during mid-day trading on Friday, hitting $82.80. 17,182,879 shares of the company were exchanged, compared to its average volume of 4,931,078. The company has a quick ratio of 1.94, a current ratio of 3.03 and a debt-to-equity ratio of 2.71. The business has a fifty day moving average of $118.49 and a 200 day moving average of $123.70. Zoetis has a 1-year low of $81.10 and a 1-year high of $172.23. The company has a market capitalization of $34.83 billion, a PE ratio of 13.73, a price-to-earnings-growth ratio of 1.28 and a beta of 0.87.

Analysts Set New Price Targets

ZTS has been the subject of a number of recent research reports. Weiss Ratings lowered Zoetis from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, March 27th. William Blair restated an “outperform” rating on shares of Zoetis in a research note on Monday, March 2nd. BTIG Research restated a “buy” rating and issued a $160.00 target price on shares of Zoetis in a research note on Thursday, February 26th. Bank of America upped their target price on Zoetis from $135.00 to $140.00 and gave the company a “neutral” rating in a research note on Friday, February 13th. Finally, Stifel Nicolaus set a $105.00 target price on Zoetis in a research note on Friday. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $141.25.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Financial Engines Advisors L.L.C. raised its stake in Zoetis by 4.4% during the third quarter. Financial Engines Advisors L.L.C. now owns 2,043 shares of the company’s stock worth $299,000 after acquiring an additional 87 shares in the last quarter. Howland Capital Management LLC increased its stake in shares of Zoetis by 4.5% in the second quarter. Howland Capital Management LLC now owns 2,137 shares of the company’s stock valued at $333,000 after buying an additional 92 shares in the last quarter. L2 Asset Management LLC increased its stake in shares of Zoetis by 4.8% in the fourth quarter. L2 Asset Management LLC now owns 2,144 shares of the company’s stock valued at $270,000 after buying an additional 99 shares in the last quarter. Snowden Capital Advisors LLC increased its stake in shares of Zoetis by 0.4% in the second quarter. Snowden Capital Advisors LLC now owns 32,390 shares of the company’s stock valued at $5,051,000 after buying an additional 115 shares in the last quarter. Finally, One Capital Management LLC increased its stake in shares of Zoetis by 5.9% in the third quarter. One Capital Management LLC now owns 2,239 shares of the company’s stock valued at $328,000 after buying an additional 124 shares in the last quarter. 92.80% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Zoetis

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: JPMorgan lowered its price target on Zoetis from $190 to $130, but kept an overweight rating, implying the stock still has meaningful upside from current levels. Benzinga report on JPMorgan target cut
• Neutral Sentiment: Some analysts remain constructive overall, with recent coverage still showing buy/overweight views and price targets well above the current share price, suggesting longer-term confidence despite near-term pressure.
• Negative Sentiment: Zoetis missed Q1 earnings and revenue estimates, which immediately hurt sentiment around the stock.
• Negative Sentiment: The company cut its FY2026 guidance after seeing weaker U.S. companion animal demand and pricing pressure, raising concerns that pet owners are spending less on veterinary care and premium products. Benzinga report on weak pet care demand
• Negative Sentiment: Media coverage described the earnings release as a sharp disappointment, with reports highlighting a steep selloff after investors reacted to the softer outlook.
• Negative Sentiment: Ademi LLP announced a securities fraud investigation into Zoetis, adding another overhang for shares as investors assess potential legal risk.

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.