Zoetis (NYSE:ZTS) Posts Quarterly Earnings Results, Beats Estimates By $0.24 EPS

Zoetis (NYSE:ZTS) issued its quarterly earnings data on Thursday. The company reported $1.75 earnings per share for the quarter, beating analysts’ consensus estimates of $1.51 by $0.24, FiscalAI reports. The company had revenue of $2.39 billion for the quarter, compared to the consensus estimate of $2.30 billion. Zoetis had a net margin of 27.49% and a return on equity of 74.89%. The firm’s revenue for the quarter was down 1.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.70 earnings per share.

Here are the key takeaways from Zoetis’ conference call:

• Q3 revenue fell 1% to $2.4 billion, while adjusted net income declined 7%. Adjusted EPS rose 1% to $1.75, helped by share repurchases.
• Companion animal revenue declined 5%, with key dermatology down 16% amid competition, softer clinic visits, and affordability pressures. Promotions slowed U.S. dermatology share loss, but did not stop it.
• Livestock revenue grew 7% on broad-based demand, and companion animal diagnostics rose 13%, providing areas of strength amid weakness in core pet-care franchises.
• Zoetis narrowed its 2026 revenue outlook to an organic decline of 1%–2% and raised adjusted net income guidance to $2.60–$2.64 billion and adjusted EPS guidance to $6.25–$6.35.
• Management said it will plan prudently for 2027, assuming no improvement in macro conditions or pet-owner spending and expecting competitive pressures to persist. Upcoming launches are expected to contribute modestly in 2027, with greater impact later and into 2028.

Zoetis Price Performance

NYSE ZTS traded down $2.61 on Friday, reaching $79.50. The company had a trading volume of 6,023,502 shares, compared to its average volume of 3,857,472. The stock has a market capitalization of $32.85 billion, a PE ratio of 13.52, a price-to-earnings-growth ratio of 1.23 and a beta of 0.67. Zoetis has a 12 month low of $68.77 and a 12 month high of $132.49. The company has a quick ratio of 1.84, a current ratio of 3.08 and a debt-to-equity ratio of 2.87. The firm’s 50 day moving average price is $75.68 and its 200 day moving average price is $92.60.

Zoetis Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Friday, October 30th will be given a dividend of $0.53 per share. The ex-dividend date is Friday, October 30th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.7%. Zoetis’s dividend payout ratio is currently 34.93%.

Key Zoetis News

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Adjusted EPS of $1.75 topped the $1.51 consensus, while revenue of $2.39 billion exceeded expectations of $2.30 billion. Zoetis also raised its full-year 2026 profit outlook. Zoetis Lifts Annual Outlook While Braces For Cautious Pet Economy
• Positive Sentiment: Livestock revenue grew 7% to $797 million, helping offset softness in companion-animal products. Jefferies also raised its price target to $85 from $83. Zoetis: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Investors appear focused on ongoing pressure in the pet-health business: owners are cutting back on veterinary visits, and Zoetis is taking a cautious view of 2027. Competitive pressures and margin headwinds also weigh on the outlook. Zoetis plans cautiously for 2027 as pet owners cut back on vet visits, shares fall ZTS Q3 2026 deep dive: Competitive pressures and margin headwinds weigh on outlook
• Negative Sentiment: Despite beating estimates, quarterly revenue declined 1.3% year over year, reinforcing concerns that strength in livestock may not fully offset weaker companion-animal demand. Zoetis reports third-quarter results

Analyst Ratings Changes

A number of analysts recently commented on ZTS shares. Stifel Nicolaus reduced their price objective on Zoetis from $85.00 to $80.00 and set a “hold” rating for the company in a research report on Thursday, August 20th. Citigroup lowered their price objective on shares of Zoetis from $112.00 to $96.00 and set a “buy” rating on the stock in a research note on Tuesday, August 11th. Morgan Stanley dropped their price objective on shares of Zoetis from $85.00 to $82.00 and set an “overweight” rating on the stock in a report on Thursday, October 29th. TD Cowen cut their target price on shares of Zoetis from $104.00 to $94.00 and set a “buy” rating for the company in a research report on Tuesday, August 25th. Finally, BTIG Research dropped coverage on shares of Zoetis in a research report on Friday, October 30th. They issued a “buy” rating and a $200.00 price target on the stock. Eight equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $101.25.

Zoetis Company Profile

Zoetis is an animal health company that discovers, develops, manufactures and markets medicines, vaccines, diagnostic products and other services for animals. Its products support both companion animals, such as dogs and cats, and livestock, including cattle, pigs, poultry, sheep and fish.

The company’s offerings include treatments for pain, infections and skin conditions, as well as vaccines, parasiticides, diagnostic tools and genetic testing services. Zoetis serves veterinarians, livestock producers and other animal health professionals around the world.

Zoetis originated as Pfizer’s animal health business and became an independent public company in 2013.