Zoetis (NYSE:ZTS) Posts Earnings Results, Beats Expectations By $0.08 EPS

Zoetis (NYSE:ZTS) released its quarterly earnings data on Thursday. The company reported $1.48 EPS for the quarter, beating analysts’ consensus estimates of $1.40 by $0.08, FiscalAI reports. Zoetis had a return on equity of 57.19% and a net margin of 28.21%.During the same period in the prior year, the firm earned $1.40 earnings per share. The firm’s quarterly revenue was up 3.0% on a year-over-year basis. 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 Stock Down 0.0%

Shares of NYSE ZTS traded down $0.03 during trading hours on Thursday, hitting $128.64. The company had a trading volume of 8,061,743 shares, compared to its average volume of 4,702,694. The stock has a market capitalization of $56.69 billion, a P/E ratio of 21.59, a price-to-earnings-growth ratio of 2.21 and a beta of 0.96. The company has a quick ratio of 2.28, a current ratio of 3.64 and a debt-to-equity ratio of 1.31. Zoetis has a 1-year low of $115.25 and a 1-year high of $177.00. The firm’s 50 day moving average is $124.16 and its 200-day moving average is $135.79.

Zoetis Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Stockholders of record on Monday, April 20th will be paid 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 dividend yield of 1.6%. Zoetis’s dividend payout ratio is currently 35.69%.

Key Headlines Impacting Zoetis

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Beat on both EPS and revenue — Q4 adjusted EPS $1.48 vs. $1.40 expected and revenue of ~$2.4B (+3% YoY), showing better-than-expected near-term profitability. Zacks: Zoetis Beats Q4
• Positive Sentiment: Raised FY2026 outlook — company guided to adjusted EPS $7.00–$7.10 and revenue $9.8B–$10.0B, above consensus, implying stronger full‑year earnings power. Reuters: Zoetis Forecasts Strong 2026
• Neutral Sentiment: Companion-animal demand and international markets remain resilient and helped offset softness in the U.S.; investors are weighing geographic and category mix. Zacks: Stock Gains After Q4
• Negative Sentiment: Analysts voiced concern about the company’s pathway to sustainable growth as several key segments showed slide or softer trends, raising questions about whether guidance momentum is durable. Benzinga: Analysts Question Growth Pathway
• Negative Sentiment: Market reaction muted/negative despite the beat — commentary and the company’s outlook highlighted U.S. softness and topline pressure, prompting some investors to trim positions. Seeking Alpha: Zoetis Slips on Outlook

Institutional Investors Weigh In On Zoetis

Institutional investors and hedge funds have recently modified their holdings of the company. Corient Private Wealth LLC lifted its position in shares of Zoetis by 85.9% in the second quarter. Corient Private Wealth LLC now owns 2,578,593 shares of the company’s stock valued at $400,619,000 after buying an additional 1,191,840 shares during the last quarter. Worldquant Millennium Advisors LLC raised its stake in Zoetis by 737.9% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 912,477 shares of the company’s stock valued at $142,301,000 after acquiring an additional 803,573 shares during the period. AQR Capital Management LLC raised its stake in Zoetis by 98.7% in the 2nd quarter. AQR Capital Management LLC now owns 1,224,620 shares of the company’s stock valued at $190,979,000 after acquiring an additional 608,239 shares during the period. Credit Agricole S A acquired a new stake in Zoetis during the 3rd quarter valued at $82,024,000. Finally, Marshall Wace LLP increased its holdings in shares of Zoetis by 1,276.4% in the third quarter. Marshall Wace LLP now owns 594,380 shares of the company’s stock valued at $86,970,000 after purchasing an additional 551,196 shares during the last quarter. 92.80% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on ZTS shares. Stifel Nicolaus reduced their price objective on shares of Zoetis from $140.00 to $130.00 and set a “hold” rating on the stock in a research note on Tuesday, November 18th. Wall Street Zen raised shares of Zoetis from a “hold” rating to a “buy” rating in a research report on Friday, January 23rd. JPMorgan Chase & Co. lowered their price objective on shares of Zoetis from $230.00 to $200.00 and set an “overweight” rating for the company in a research report on Wednesday, November 5th. UBS Group set a $136.00 target price on Zoetis in a report on Thursday, January 29th. Finally, Piper Sandler restated a “neutral” rating and issued a $135.00 price target (down from $190.00) on shares of Zoetis in a report on Thursday, January 22nd. Five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $152.45.

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.