Zoetis Announces Third Quarter 2026 Results; Highlights Progress Advancing Innovation Across Diversified Portfolio and Narrows Full Year 2026 Revenue…
Zoetis Inc. (ZTS) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Zoetis Announces Third Quarter 2026 Results; Highlights Progress Advancing Innovation Across Diversified Portfolio and Narrows Full Year 2026 Revenue Guidance, Raises Full Year 2026 Adjusted EPS Guidance Third Quarter 2026 Highlights • Revenue: $2.4 billion , decreas
How this was made
The 30-second read
Why it matters
The earnings release introduces fresh guidance numbers, influencing short‑term price action and sector sentiment.
Market read
Zoetis' earnings and guidance update provide new data for traders, with mixed signals that may drive short‑term volatility.
What to watch
Strong livestock revenue growth and new product approvals may offset companion animal weakness.
Zoetis Announces Third Quarter 2026 Results; Highlights Progress Advancing Innovation Across Diversified Portfolio and Narrows Full Year 2026 Revenue Guidance, Raises Full Year 2026 Adjusted EPS Guidance
Third-quarter revenue declined 1%, with a 6% U.S. decline and an 8% decline in companion animal revenue, while International revenue grew 4% and livestock revenue grew 7%. GAAP net income and diluted EPS declined, although adjusted diluted EPS increased 3% and full-year adjusted EPS guidance was raised.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Revenue (millions of dollars)GAAP | $2.39B | – | (1) % |
| Q3 2026 Gross profit (millions of dollars)GAAP | $1.69B | – | – |
| Q3 2026 Cost of sales (millions of dollars)GAAP | $698M | – | — |
| Q3 2026 Selling, general and administrative expenses (millions of dollars)GAAP | $582M | – | — |
| Q3 2026 Research and development expenses (millions of dollars)GAAP | $174M | – | (1) |
| Q3 2026 Amortization of intangible assets (millions of dollars)GAAP | $31M | – | (3) |
| Q3 2026 Restructuring charges and certain acquisition and divestiture-related costs (millions of dollars)GAAP | $43M | – | * |
| Q3 2026 Interest expense, net of capitalized interest (millions of dollars)GAAP | $62M | – | 7 |
| Q3 2026 Other (income)/deductions-net (millions of dollars)GAAP | $72M | – | * |
| Q3 2026 Income before provision for taxes on income (millions of dollars)GAAP | $729M | – | (18) |
| Q3 2026 Provision for taxes on income (millions of dollars)GAAP | $138M | – | (16) |
| Q3 2026 Net income attributable to Zoetis Inc. (millions of dollars)GAAP | $591M | – | (18) |
| Q3 2026 Earnings per share attributable to Zoetis-dilutedGAAP | $ 1.44 | – | (12) |
| Q3 2026 Adjusted net income (millions of dollars)non-GAAP | $720M | – | (5) % |
| Q3 2026 Adjusted diluted EPSnon-GAAP | $ 1.75 | – | 3% reported and 1% organic operational |
| Q3 2026 Adjusted gross profit (millions of dollars)non-GAAP | $1.70B | – | – |
| Q3 2026 Adjusted cost of sales (millions of dollars)non-GAAP | $694M | – | — % |
| Q3 2026 Adjusted cost of sales as a percent of revenuenon-GAAP | 29.0 % | – | – |
| Q3 2026 U.S. gross marginother | 82.2 % | – | – |
| Q3 2026 International gross marginother | 68.9 % | – | – |
| Nine Months 2026 Revenue (millions of dollars)GAAP | $7.12B | – | — |
| Nine Months 2026 Net income attributable to Zoetis Inc. (millions of dollars)GAAP | $1.88B | – | (8) |
| Nine Months 2026 Earnings per share attributable to Zoetis-dilutedGAAP | $ 4.51 | – | (2) |
| Nine Months 2026 Adjusted net income (millions of dollars)non-GAAP | $2.15B | – | (1) % |
| Nine Months 2026 Adjusted diluted EPSnon-GAAP | $ 5.14 | – | – |
| Nine Months 2026 U.S. gross marginother | 82.5 % | – | – |
| Nine Months 2026 International gross marginother | 70.3 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 U.S.Companion animal revenue decreased 8%, reflecting macro-driven price sensitivity and competitive pressure in dermatology, as well as generic competition. Livestock revenue increased 5%, supported by strength across cattle, swine and poultry. | $1.25B | – | (6) % |
| Q3 2026 InternationalCompanion animal revenue increased 1% on a reported basis and remained flat on an organic operational basis, while livestock revenue increased 8% on a reported basis and 9% on an organic operational basis, driven by growth in cattle and fish. | $1.12B | – | 4 % |
| Q3 2026 Companion AnimalDogs and Cats revenue was $ 1,492 and declined (6) %; Horses revenue was $ 73 and increased 6 %. | $1.56B | – | (5) % |
| Q3 2026 LivestockCattle revenue was $ 439 and increased 6 %; Swine revenue was $ 120 and increased 3 %; Poultry revenue was $ 108 and increased 2 %; Fish revenue was $ 98 and increased 23 %; Sheep and other revenue was $ 32 and increased 10 %. | $797M | – | 7 % |
| Q3 2026 Contract Manufacturing & Human HealthOperational growth was 15 %. | $ 29 | – | 12 % |
| Nine Months 2026 U.S.U.S. companion animal revenue declined (10) % and U.S. livestock revenue increased 11 %. | $3.60B | – | (7) % |
| Nine Months 2026 InternationalInternational companion animal revenue increased 8 % and International livestock revenue increased 11 %. | $3.44B | – | 9 % |
| Nine Months 2026 Companion AnimalDogs and Cats revenue was $ 4,569 and declined (4) %; Horses revenue was $ 223 and increased 9 %. | $4.79B | – | (4) % |
| Nine Months 2026 LivestockCattle revenue increased 13 %, Swine revenue increased 6 %, Poultry revenue increased 8 %, Fish revenue increased 14 %, and Sheep and other revenue increased 7 %. | $2.25B | – | 11 % |
| Nine Months 2026 Contract Manufacturing & Human HealthOperational growth was (9) %. | $ 81 | – | (9) % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 as of November 5, 2026 outlook
- Revenue$9,220 to $9,320
- Operating expensesAdjusted SG&A expenses (b) $2,340 to $2,370; Adjusted R&D expenses (b) $705 to $715
- Tax rateApproximately 20%
- NoteOrganic operational results (a) (2)% to (1)%
- NoteAdjusted cost of sales as a percentage of revenue (b) Approximately 29.0%
- NoteAdjusted interest expense and other (income)/deductions-net (b) Approximately $215
- NoteAdjusted diluted EPS (b) $6.25 to $6.35
- NoteAdjusted net income (b) $2,600 to $2,640
- NoteOrganic operational results (a)(c) (7)% to (5)%
- NoteCertain significant items and acquisition and divestiture-related costs (d) Approximately $210
- NoteReported diluted EPS $5.50 to $5.60
- NoteNet income attributable to Zoetis $2,300 to $2,340
What drove it
- International revenue increased 4 % in the third quarter, including 8 % reported growth in livestock revenue.
- Livestock revenue increased 7 % overall, with fish revenue increasing 23 %.
- International companion animal performance was led by parasiticides and osteoarthritis pain, partly offset by lower sales of key dermatology products.
- Zoetis received FDA approval for Convenia RTU for Dogs in October and expects the product to be available to veterinarians in the first quarter of 2027.
- Select approvals anticipated in 2027 are now expected in Q4 2026.
Concerns
- U.S. revenue decreased (6) % and U.S. companion animal revenue decreased (8) %.
- The company cited macro-driven price sensitivity, competitive pressure in dermatology and generic competition in U.S. companion animal.
- GAAP net income attributable to Zoetis Inc. decreased (18) % and GAAP diluted EPS decreased (12) %.
- Certain significant items were $ 133 pre-tax and included $ 89 of certain asset impairment charges.
- Full-year revenue guidance was narrowed to $9,220 to $9,320, with organic operational growth of (2)% to (1)%.
What to watch
- Whether U.S. companion animal demand, dermatology competition and generic competition continue to pressure revenue.
- The pace of livestock growth, particularly cattle and fish, and the durability of International growth.
- Delivery of full-year revenue guidance of $9,220 to $9,320 and adjusted diluted EPS guidance of $6.25 to $6.35.
- Execution of the comprehensive cost and productivity program and the multi-year business process transformation program.
- Timing of anticipated Q4 2026 product approvals and the first-quarter 2027 availability of Convenia RTU for Dogs.
Analysis
Zoetis reported third-quarter revenue of $ 2,391 million, down (1) % from $ 2,422 million. The revenue outcome reflected a (6) % decline in the U.S., which was only partly offset by 4 % growth in International. Companion Animal revenue declined (5) % to $ 1,565 million, while Livestock revenue increased 7 % to $ 797 million. Management attributed U.S. companion animal weakness to macro-driven price sensitivity, dermatology competition and generic competition.
International was the principal offset to U.S. weakness. International revenue was $ 1,116 million, with companion animal revenue increasing 1 % on a reported basis but flat on an organic operational basis. International livestock revenue increased 8 % reported and 9 % organic operational, driven by cattle and fish. Across the company, fish revenue increased 23 %, while cattle revenue increased 6 %.
Profitability declined on a GAAP basis. Net income attributable to Zoetis Inc. was $ 591 million, down (18) %, and diluted EPS was $ 1.44, down (12) %. The release reported $ 133 of pre-tax certain significant items, including $ 89 of certain asset impairment charges, as well as restructuring and cost-reduction/productivity initiatives. On a non-GAAP basis, adjusted net income was $ 720 million, down (5) %, while adjusted diluted EPS increased 3 % to $ 1.75. U.S. gross margin declined to 82.2 % from 83.2 %, whereas International gross margin increased to 68.9 % from 68.2 %.
For the first nine months, revenue was $ 7,121 million versus $ 7,094 million, while net income attributable to Zoetis Inc. declined to $ 1,883 million from $ 2,049 million. The company narrowed full-year revenue guidance to $9,220 to $9,320 and now expects organic operational revenue growth of (2)% to (1)%. It raised adjusted net income guidance to $2,600 to $2,640 and adjusted diluted EPS guidance to $6.25 to $6.35. The guide reflects foreign exchange rates as of October 20, 2026.
Portfolio development remains active, with FDA approval of Convenia RTU for Dogs in October and expected availability in the first quarter of 2027. Zoetis also stated that select approvals anticipated in 2027 are now expected in Q4 2026. The central operating issue remains whether livestock, diagnostics and international growth can continue to offset pressure in U.S. companion animal, while the company manages cost-reduction initiatives, impairment charges and business process transformation spending.
Management, verbatim
Our third-quarter performance was in line with our expectations. Continued pressure in Companion Animal was partially offset by growth in Livestock and Diagnostics, reflecting the breadth of our portfolio.
Kristin Peck, Chief Executive Officer of Zoetis
We remain focused on defending our position and directing our resources where they can have the greatest impact. And with the scale, expertise, and pipeline to keep setting the pace of innovation in animal health, we are confident in our ability to create long-term value for customers and shareholders.
Kristin Peck, Chief Executive Officer of Zoetis
Not in the filing
stated, not guessed- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and cash equivalents were not reported.
- Debt was not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Quarterly gross margin for total consolidated Zoetis was not reported as a standalone line item.
- Prior-quarter comparisons were not reported.
- A separately provided previous-release outlook for comparison with actual results was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Zoetis filed a Form 8‑K reporting Q3 2026 financials and updated full‑year guidance, including new product approvals and pipeline advancements.
Ticker impact
Zoetis issued updated guidance, raising full-year adjusted EPS guidance and narrowing revenue guidance after reporting Q3 2026 results.
likely modest pressure as revenue miss offsets EPS raise, with potential upside if investors focus on higher EPS guidance.
The earnings release provides fresh numbers and revised guidance, creating a new data point for traders; the mixed results may cause short-term volatility but the raised EPS guidance could support the stock.
Market effects
Animal health sector may see slight revaluation as Zoetis' mixed results highlight pressure in companion animal segment and growth in livestock.
U.S. market may see minor impact in healthcare stocks, with investors weighing Zoetis' guidance against peers.
Global animal health market could adjust expectations for growth, especially in regions where Zoetis operates.
Counterpoint
Despite revenue decline, the raised EPS guidance and pipeline progress could justify a longer-term bullish stance.
Key entities
- CompanyZoetis Inc.
World's leading animal health company.
