Zoetis (NYSE:ZTS) Issues Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Zoetis (NYSE:ZTS) posted its quarterly earnings data on Thursday. The company reported $1.48 earnings per share for the quarter, topping analysts’ consensus estimates of $1.40 by $0.08, FiscalAI reports. The company had revenue of $2.39 billion for the quarter, compared to analyst estimates of $2.36 billion. Zoetis had a net margin of 28.21% and a return on equity of 57.19%. The firm’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.40 EPS. Zoetis updated its FY 2026 guidance to 7.000-7.100 EPS.

Here are the key takeaways from Zoetis’ conference call:

• Full-year 2025 results showed $9.5 billion revenue, 6% organic operational revenue growth and 7% organic operational adjusted net income growth, and management guided 2026 to 3%–5% organic revenue growth and 3%–6% organic adjusted net income growth (reported revenue $9.825B–$10.025B).
• The companion-animal franchise led performance — the Simparica portfolio grew 12% operationally (Trio topped $1B in the U.S.), key dermatology and diagnostics (Vetscan/Imagyst/OptiCell) also expanded, supported by omni-channel distribution and >185 lifecycle/geographic innovations in 2025.
• The OA pain monoclonal antibody franchise weakened (down 3% operationally to $568M), with Librela facing steep U.S. declines (‑16% y/y, ‑32% in Q4); Zoetis is engaging regulators and pursuing education but says headwinds may persist near term.
• Livestock remained a strong growth engine with 8% organic operational growth (~$2.8B), double-digit international gains and momentum in poultry, cattle, swine and aquaculture, while the MFA divestiture and pricing helped expand adjusted gross margin (+120 bps).
• Management is implementing an ERP/fiscal-year alignment that accelerated some international sales into Q4 (estimated ~2.5%–3.5% uplift) and will produce recast prior periods — this creates near-term timing noise and improved comparability once completed.

Zoetis Price Performance

NYSE ZTS traded up $4.06 during trading hours on Friday, hitting $129.70. 417,598 shares of the company’s stock traded hands, compared to its average volume of 4,661,308. The firm’s 50-day moving average is $124.26 and its 200-day moving average is $135.72. The company has a market capitalization of $57.16 billion, a PE ratio of 21.79, a PEG ratio of 2.22 and a beta of 0.96. The company has a debt-to-equity ratio of 1.31, a current ratio of 3.64 and a quick ratio of 2.28. Zoetis has a 52-week low of $115.25 and a 52-week high of $177.00.

Zoetis Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 2nd. Investors of record on Monday, April 20th will be given a dividend of $0.53 per share. The ex-dividend date is Monday, April 20th. This represents a $2.12 dividend on an annualized basis and a yield of 1.6%. Zoetis’s payout ratio is presently 35.69%.

Hedge Funds Weigh In On Zoetis

A number of hedge funds and other institutional investors have recently bought and sold shares of ZTS. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Zoetis during the fourth quarter worth $42,000. Bellevue Group AG lifted its holdings in Zoetis by 32.7% during the 3rd quarter. Bellevue Group AG now owns 872 shares of the company’s stock worth $128,000 after buying an additional 215 shares during the last quarter. Newbridge Financial Services Group Inc. increased its holdings in shares of Zoetis by 23.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 1,145 shares of the company’s stock valued at $168,000 after acquiring an additional 219 shares during the last quarter. State of Wyoming boosted its stake in Zoetis by 13.9% in the fourth quarter. State of Wyoming now owns 1,463 shares of the company’s stock valued at $184,000 after acquiring an additional 179 shares in the last quarter. Finally, Headlands Technologies LLC purchased a new position in shares of Zoetis during the second quarter worth about $194,000. 92.80% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have issued reports on the company. UBS Group set a $136.00 target price on Zoetis in a research note on Thursday, January 29th. KeyCorp assumed coverage on Zoetis in a research report on Thursday, November 20th. They set a “sector weight” rating on the stock. The Goldman Sachs Group upgraded shares of Zoetis to a “buy” rating in a report on Monday, December 15th. BTIG Research restated a “buy” rating and set a $160.00 price target on shares of Zoetis in a research note on Wednesday, December 3rd. Finally, HSBC set a $140.00 price objective on shares of Zoetis in a research note on Wednesday, December 10th. Five equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $152.91.

Key Zoetis News

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Zoetis beat Q4 estimates with $1.48 adjusted EPS on $2.39B revenue and set FY‑2026 guidance above Street expectations (EPS $7.00–7.10; revenue $9.8B–$10.0B), supporting the company’s profit outlook. Zoetis forecasts strong 2026 profit
• Positive Sentiment: Bank of America raised its Zoetis price target to $140 (from $135), implying upside from current levels even while keeping a “neutral” rating — a modest endorsement of valuation/growth prospects. Benzinga
• Neutral Sentiment: Full earnings materials and call transcripts are available for investors who want line‑by‑line detail; management provided slides and commentary on regional performance and product trends. Earnings Call Transcript
• Neutral Sentiment: Analyst notes and coverage point to durable demand in companion‑animal products and resilience in international markets, which partially offset weakness in the U.S. Zacks
• Negative Sentiment: Several analysts and articles flagged pressure on top‑line growth after management commentary highlighted sliding performance in some key segments — raising questions about the sustainability of the company’s growth runway. Analysts Question Zoetis’ Pathway To Growth
• Negative Sentiment: Coverage notes investor disappointment that, despite the beat and raised guidance, domestic softness and segmental headwinds may slow revenue momentum — a likely driver of near‑term selling pressure. Zoetis slips as outlook shows pressure on topline growth

Zoetis Company Profile

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.