ZTS US S&P 500Russell 1000 Earnings call

Zoetis (ZTS) · Q2 2026 results and valuation

Share price: $82.57 · 2026-11-11

Zoetis develops, manufactures, and sells medicines, vaccines, diagnostic products, and biodevices for companion animals and livestock. The company serves veterinarians, pet owners, and livestock producers in the United States and international markets. Its product portfolio includes parasiticides, anti-infectives, and treatments for various animal health conditions. Source: 10-K annual report (2026-02-12)

Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026

Net income up 15.0% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.

1 · Numbers

+15.0%

Net income vs Q1 2026

Outlook given

Net income 691.0M vs 601.0M

Revenue +9.1%

Against the same quarter last year (Q2 2025) it is −4.8%, so the move on last quarter looks seasonal or timing-related rather than a trend.

2 · How management spoke

Restrained

Less upbeat than 66% of company calls

Answers to analysts: cautious, in line with the script.

Similar to last call.

3 · What stood out

Zoetis revised its full-year revenue guidance to a range of $9.12 billion to $9.32 billion, representing a 1% to 3% year-over-year decline due to pressure on Companion Animal franchises.

Valuation

Is Zoetis undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 5.4% growth a year (3-year revenue growth), the model's fair value is $74.37 a share — the stock trades 11% above it. Today's price assumes 6.6% growth a year.

Current price

$82.57

close of 2026-11-11

Market implies growth of i

+6.6% for 10 yrs

Fair value / share

$74.37

Buy below

$55.78

Price vs fair value

Overvalued 11%

Price vs buy-below price

Overvalued 48%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

ZTS revised its full-year revenue guidance to a range of $9.12 billion to $9.32 billion, representing a 1% to 3% year-over-year decline due to pressure on Companion Animal franchises.
Guidance

Adjusted net income is now expected to be between $2.57 billion and $2.62 billion, representing a year-over-year decline of 9% to 5% on an organic operational basis.
Figure

Revenue grew 12% in the quarter due to sustained demand for diagnostic tools and services, particularly in urgent and emergency care.

Source quote
“Revenue grew 12% in the quarter, reflecting sustained demand for diagnostic tools and services, particularly in urgent and emergency care.”
Figure

Quarter global revenue was $2.5 billion, falling 1% on an organic operational basis due to a 1% decline in volume with price remaining approximately flat.

Source quote
“Second quarter global revenue was $2.5 billion, flat on a reported basis and down 1% on an organic operational basis, driven by a 1% decline in volume with price approximately flat.”
Figure

Livestock revenue grew by 11% this quarter, providing resilience to the company's diversified portfolio.

Source quote
“Our diversified portfolio continued to provide resilience with livestock delivering another quarter of strong 11% revenue growth.”

4 more

Figure

Excluding FX, gross margin increased about 10 basis points due to lower manufacturing costs and productivity, which were partially offset by unfavorable mix.

Source quote
“Excluding FX, gross margin increased about 10 basis points, reflecting lower manufacturing costs and productivity, partially offset by unfavorable mix.”
Guidance

Foreign exchange headwinds are expected to cause a top-line headwind of $60 million to $65 million and a bottom-line headwind of approximately $30 million.
Key theme

Jay Saccaro will also be joining Zoetis as Zoetis' EVP, Chief Financial Officer and Chief Operating Officer.
Figure

Simparica Trio maintained its position as the market leader in oral parasiticides by holding approximately 21% in-clinic market share in Q2, which is nearly double its nearest competitor.

Source quote
“Simparica Trio maintained its position as the clear market leader in oral parasiticides, holding in-clinic market share of approximately 21% in Q2, nearly double that of its nearest competitor.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Restrained (was typical)

Answers to analysts Cautious (was restrained)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Abhay previously led our Global Diagnostics Division and demonstrated that he is a high-impact leader who can drive strong revenue growth while also advancing innovation and building out key capabilities.”

“Encouraging early experience is driving the acceleration of Lenivia launches in Canada and Europe, reinforcing our conviction in the long-term opportunity and belief that this expanded portfolio can help bring...”

“Importantly, we continue to demonstrate strong P&L discipline, protecting profitability through cost actions while staying focused on the investment behind our highest-return opportunities.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	2.47B	2.26B	+9.1%	2.47B	−0.2%
Gross profit	1.79B	1.62B	+10.7%	1.81B	−0.8%
Operating income	866.0M	758.0M	+14.2%	912.0M	−5.0%
Net income	691.0M	601.0M	+15.0%	726.0M	−4.8%
EPS	1.65	1.42	+16.2%	1.63	+1.2%
P/E today 13.4	11.7	19.4	−7.7	27.0	−15.3

Topics

Most discussed now

Zoetis will also reference reported and organic operational growth.
Unless otherwise stated, all revenue growth performance metrics will be based on organic operational performance.
Historically, when more companies invest behind a therapeutic category, that activity helps expand the market by increasing disease…
That's why Zoetis is focused on those overall pricing sets.

Faded since Q1 2026

Fading Zoetis saw a convergence of interconnected dynamics shaping decisions at the point of care.
Fading Pet owners demonstrated increased price sensitivity with softer demand for premium products in preventative and chronic care, where…
Fading The way Zoetis approaches pricing is always down to each market, each product and what is the value that it...
Fading This has obviously made them much more sensitive, but also, as you saw, led to a decrease in vet visits,...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-11-05 Results of operations · SEC 8-K
2026-10-13 Director or officer change; Regulation FD disclosure · SEC 8-K
Zoetis Inc. appointed Iris Knobloch to its Board of Directors effective December 1, 2026, increasing the board size from 12 to 13 members.
2026-10-08 Regulation FD disclosure · SEC 8-K
The Company declared a dividend of $0.53 per share for the fourth quarter of 2026, to be paid on December 1, 2026.
2026-08-06 Director or officer change · SEC 8-K
Zoetis Inc. appointed James Saccaro as Executive Vice President, Chief Financial Officer, and Chief Operating Officer effective August 17, 2026, as Wetteny Joseph transitions to an advisory role.
2026-08-06 Results of operations · SEC 8-K
Zoetis Inc. issued a press release on August 6, 2026, reporting its financial results for the second quarter of 2026 and guidance for the full year 2026.
2026-05-22 Director or officer change; Shareholder vote results · SEC 8-K
Ms. Louise M. Parent retired from the Board of Directors on May 20, 2026, and shareholders voted on five proposals with 379,034,516 shares present representing 90.13% of the voting power.
2026-05-20 Regulation FD disclosure · SEC 8-K
The Company declared a dividend of $0.53 per share for the third quarter of 2026, to be paid on September 1, 2026.
2026-05-07 Results of operations · SEC 8-K
Zoetis Inc. issued a press release on May 7, 2026, reporting its first quarter 2026 financial results and full-year 2026 guidance.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.

Cash & runway

Cash & equivalents

$1.48B

2026-06-30

Short-term investments

$200.0M

total $1.68B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -6.2% YoY, -1.1% QoQ.

Quarter	Shares
Q3 2024	452.9M
Q1 2025	447.6M
Q2 2025	445.1M
Q3 2025	442.9M
Q1 2026	422.1M
Q2 2026	417.6M

Shares outstanding: 413.2M (2026-07-31)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 107 filings; 50 filings parsed.

Sold by insiders

0 shares

0 transactions

Bought by insiders

11.7K shares

$886.4K · 3 transactions

Net direction

net buying

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

August 17

Jay Saccaro starting in his new role

Source quote
“I look forward to partnering closely with Jay, and I know he's eager to get started in a few weeks on August 17.”
over the next several years

pipeline with 12 potential blockbusters

Source quote
“Our pipeline with 12 potential blockbusters over the next several years creates meaningful opportunity to shape standards of care and create new markets.”
until early 2027

Wetteny remaining as a special adviser on financial matters

Source quote
“As Kristin noted, I remain as a special adviser on financial matters until early 2027 to help ensure a smooth transition for all.”
in the coming year

expansion into other markets for the OA pain portfolio

Source quote
“We recently announced full launch in those markets and continue to expect expansion into other markets in the coming year.”
second half

growth to moderate from Q2's pace to the mid-single-digit range

Source quote
“We do expect second half growth to moderate from Q2's pace to the mid-single-digit range as several of the dynamics that contributed to Q2's outperformance are transitory.”