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

Zoetis (NYSE:ZTS) released its earnings results on Thursday. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.40 by $0.08, FiscalAI reports. Zoetis had a net margin of 28.21% and a return on equity of 57.19%. During the same quarter last year, the firm earned $1.40 earnings per share. The company’s revenue for the quarter was up 3.0% compared to the same quarter last year. 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

ZTS stock traded down $0.03 during midday trading on Thursday, reaching $128.64. 8,061,743 shares of the company’s stock traded hands, compared to its average volume of 4,702,694. The company has a 50-day simple moving average of $124.16 and a two-hundred day simple moving average of $135.79. 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 company has a market cap of $56.69 billion, a price-to-earnings ratio of 21.59, a PEG ratio of 2.21 and a beta of 0.96.

Zoetis Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Stockholders of record on Monday, April 20th will be issued a dividend of $0.53 per share. The ex-dividend date of this dividend is Monday, April 20th. This represents a $2.12 annualized dividend and a dividend yield of 1.6%. Zoetis’s dividend payout ratio (DPR) is presently 35.69%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Brighton Jones LLC increased its stake in shares of Zoetis by 180.4% in the 4th quarter. Brighton Jones LLC now owns 4,629 shares of the company’s stock valued at $754,000 after buying an additional 2,978 shares during the period. Empowered Funds LLC boosted its holdings in Zoetis by 6.2% in the first quarter. Empowered Funds LLC now owns 11,293 shares of the company’s stock valued at $1,859,000 after acquiring an additional 657 shares during the last quarter. Intech Investment Management LLC increased its position in Zoetis by 17.2% in the first quarter. Intech Investment Management LLC now owns 8,347 shares of the company’s stock worth $1,374,000 after purchasing an additional 1,224 shares during the period. Sivia Capital Partners LLC raised its holdings in Zoetis by 73.8% during the 2nd quarter. Sivia Capital Partners LLC now owns 3,348 shares of the company’s stock worth $522,000 after purchasing an additional 1,422 shares during the last quarter. Finally, Glenview Trust co lifted its position in Zoetis by 11.8% during the 2nd quarter. Glenview Trust co now owns 4,780 shares of the company’s stock valued at $745,000 after purchasing an additional 506 shares during the period. Institutional investors and hedge funds own 92.80% of the company’s stock.

Zoetis News Roundup

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

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. BTIG Research restated a “buy” rating and set a $160.00 price target on shares of Zoetis in a report on Wednesday, December 3rd. Wall Street Zen upgraded shares of Zoetis from a “hold” rating to a “buy” rating in a research note on Friday, January 23rd. Weiss Ratings lowered Zoetis from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, January 28th. JPMorgan Chase & Co. cut their price target on Zoetis from $230.00 to $200.00 and set an “overweight” rating for the company in a report on Wednesday, November 5th. Finally, UBS Group set a $136.00 price objective on shares of Zoetis in a research note on Thursday, January 29th. Five analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Zoetis presently has a consensus rating of “Hold” and an average target price of $152.45.

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.