Zoetis (NYSE:ZTS) Posts Earnings Results

Zoetis (NYSE:ZTS) released its quarterly earnings results 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. The firm had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.30 billion. Zoetis had a net margin of 27.49% and a return on equity of 74.89%. The company’s revenue for the quarter was down 1.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.70 EPS.

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 Trading Down 3.2%

Shares of Zoetis stock traded down $2.61 during trading hours on Friday, hitting $79.50. The company’s stock had a trading volume of 6,023,502 shares, compared to its average volume of 3,857,472. The company has a market capitalization of $32.85 billion, a PE ratio of 12.64, a price-to-earnings-growth ratio of 1.23 and a beta of 0.67. The stock has a 50 day moving average of $75.68 and a 200 day moving average of $92.60. The company has a debt-to-equity ratio of 2.87, a current ratio of 3.08 and a quick ratio of 1.84. Zoetis has a 12 month low of $68.77 and a 12 month high of $132.49.

Zoetis Dividend Announcement

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

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ZTS. Piper Sandler reduced their price target on Zoetis from $90.00 to $80.00 and set a “neutral” rating for the company in a research report on Monday, August 10th. Jefferies Financial Group increased their price objective on Zoetis from $83.00 to $85.00 in a report on Friday. Cantor Fitzgerald set a $94.00 target price on shares of Zoetis in a research note on Tuesday, August 25th. Citigroup decreased their price target on Zoetis from $112.00 to $96.00 and set a “buy” rating on the stock in a research note on Tuesday, August 11th. Finally, The Goldman Sachs Group assumed coverage on Zoetis in a research note on Friday, October 16th. They set a “neutral” rating and a $74.00 price target for the company. Eight research 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. According to data from MarketBeat.com, Zoetis presently has a consensus rating of “Hold” and a consensus price target of $101.25.

Trending Headlines about Zoetis

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.