Zoetis (ZTS) Company Report

Fiscal 2025 delivered 6% top-line growth (organic operational) and 7% bottom-line growth, with H1 at 9% growth and a H2 deceleration driven by U.S. pet care volume weakness and pricing, while livestock grew mid-single digits on continued demand and diversification.
For fiscal 2026, Zoetis guides to 3–5% revenue growth and 3–6% adjusted net income growth, expecting mid-single-digit growth in livestock and its key pet-health franchises, with price contributing 2–3 points.
In parasiticides, US Trio sales reached $1 billion in 2025, triple combinations now represent 50% of the U.S. market (about 66% of puppies), and the category is expected to continue outpacing overall animal-health growth.
Capital allocation priorities remain investing in R&D, targeted M&A (recent livestock genetics deal), and shareholder returns with $1.5–1.8 billion of annual buybacks (≈$2.4 billion authorization remaining) supported by strong cash flow.

10 hours ago

Transcript

Zoetis outlines 2025 results and 2026 outlook at Barclays conference

ZTS

Guidance Update

Revenue Acceleration/Inflection

Zoetis reported 6% organic revenue growth and 7% adjusted net income growth in 2025 (9% in H1 vs. 6% in H2) and issued guidance for 3–5% revenue growth and 3–6% earnings growth in 2026.
In 2H 2025, US pet care volume softened due to consumer price sensitivity and new competitive veterinary launches, while pricing (≈4%) and livestock/diagnostics remained strong contributors.
The business is diversified: the US accounts for 55% of total revenues, international companion animal growth has matched US rates over eight years, and livestock is expected to grow mid-single digits, led by aqua and poultry.
Key growth drivers include parasiticides—triple‐combo penetration reached 50% of US clinic share (≈2/3 of puppies) with $1 billion in US trio revenues—and dermatology, which generated $1.7 billion in 2025 and remains underpenetrated.

10 hours ago

Transcript

Zoetis reports fiscal 2025 results and 2026 outlook at Barclays healthcare conference

ZTS

Guidance Update

Share Buyback

M&A

6% organic revenue growth and 7% adjusted net income growth in fiscal 2025, with a stronger first half (9%) versus second half (6%).
2026 guidance of 3–5% top-line growth and 3–6% bottom-line growth, driven by mid-single-digit livestock performance, key companion animal franchises, and 2–3% pricing.
Parasiticides market (≈$7 billion globally) led by Trio, which achieved $1 billion in US revenues in 2025; triple combinations now account for 50% of US clinic share (with 2/3 of puppies).
Dermatology revenues reached $1.7 billion in 2025 (from ≈$1.2–1.3 billion in 2021), with underpenetration and clinic treatments covering ~50% of itchy dogs indicating further expansion opportunity.
Capital allocation prioritizes R&D and recent livestock genetics acquisition, while returning capital via $3.2 billion repurchased in 2025 and ongoing annual buybacks of $1.5–1.8 billion.

10 hours ago

Transcript

Zoetis outlines companion animal and livestock trends at Leerink conference

ZTS

Guidance Update

Companion animal demand remains robust: vet clinic revenues up 6% in Q4 2025, though millennials/Gen Z face volume pressures and emergency care use has risen.
Parasiticide strength: Trio achieved >$1 billion in US sales with ~95% satisfaction; triple-combination products cover 50% of vet patients (67% of new puppies), and autoship lifts compliance from ~6 to ~11 months.
Dermatology recovery: after Q2 2025 headwinds, derm visits flattened in Q4, with key derm revenues of $1.7 billion and under 50% of itchy dogs treated by vets.
Osteoarthritis opportunity: 25–27 million US dogs with OA pain but only 9 million treated (8 M on NSAIDs, 1 M on Librela); Librela satisfaction >75% and long-acting OA products expected by 2027 in the US.
Pipeline focus: targeting chronic kidney disease with diagnostics and therapeutics for a $3–4 billion TAM.

1 day ago

Transcript

Zoetis outlines demand trends and 2026 outlook at Leerink Conference

ZTS

Guidance Update

Share Buyback

M&A

Companion animal demand remains resilient with vet clinic revenues up 6% in Q4 2025; pet owners continue prioritizing pet health despite volume pressures among younger cohorts and corporate clinics moderating price increases.
Trio parasiticide delivered ›$1 billion in US revenue last year, supported by 95–96% pet owner and veterinarian satisfaction; market share sits at ~50% overall and nearly two-thirds among new puppies, and autoship channels lift average compliance from 6 to 11 months.
Key Dermatology grew to $1.7 billion in 2025 yet under 50% of itchy dogs receive regular veterinary treatment, signalling significant upside; a long-acting Cytopoint formulation is expected to launch in late 2026.
Of an estimated 25–27 million US dogs with osteoarthritis pain, only 9 million are treated (8 million on NSAIDs, 1 million on Librela); long-acting OA therapies are slated for US approval by 2027 to further expand patient access.
Livestock sales rose 6–7% in 2025 with mid-single-digit growth forecast for 2026; Zoetis returned $4 billion to shareholders in 2025 (including $3.2 billion of buybacks and $0.8 billion of dividends) and acquired Neogen’s genomics unit to enhance its precision-livestock portfolio.

1 day ago

Transcript

Zoetis outlines companion animal growth drivers and capital allocation

ZTS

Share Buyback

M&A

Guidance Update

Companion animal spending remains strong, with vet clinic revenues up 6% in Q4 2025, though younger owners show volume pressure and clinics are prioritizing preventive over routine visits and emergency care.
Parasiticides momentum: Trio generated over $1 billion in U.S. revenues; triple combinations now account for ~50% of patient treatments (≈66% of puppies) with 95–96% satisfaction, and autoship boosts compliance from 6 to 11 months.
Dermatology market opportunity: key derm products drove $1.7 billion in 2025 sales; derm visits recovered from their Q2 2025 trough to flat in Q4, yet under 50% of itchy dogs receive veterinary treatment, indicating room for growth.
Osteoarthritis focus: of an estimated 25–27 million U.S. OA dogs, only 9 million are treated (8 million on NSAIDs, 1 million on Librela), with >75% owner satisfaction; long-acting OA therapies expected in the U.S. by 2027 should broaden uptake.
Capital deployment and outlook: returned $4 billion in 2025 (buybacks $3.2 billion, dividends $0.8 billion), acquired Neogen’s genomics business to deepen market leadership, and guides mid-single-digit livestock growth for 2026.

1 day ago

Transcript

Zoetis to acquire Neogen animal genomics business

ZTS

M&A

Zoetis to acquire Neogen’s animal genomics business for $160 million (subject to customary closing adjustments).
Deal strengthens Zoetis’s Precision Animal Health portfolio by integrating Neogen’s genomics technologies and data solutions to enhance predictive insights and individualized care.
Neogen’s genomics unit operates five laboratories in the US, Brazil, Australia, China, and the UK, serving customers in over 120 countries and leading U.S. beef and dairy genomics.
Transaction is expected to close in H2 2026, pending customary closing conditions and regulatory approvals.

Mar 2, 2026, 12:00 PM

Press Release

Zoetis updates 2026 guidance, reporting calendar, and competitive positioning

ZTS

Guidance Update

Product Launch

Share Buyback

Zoetis delivered 6% revenue growth and 7% adjusted net income growth in FY 2025, guiding 3–5% revenue and 3–6% adjusted net income growth for 2026 on an organic operational basis.
The company will align U.S. and international reporting periods to a January–December fiscal year from Q1 2026, with recast quarterly data for 2024–2025 provided to maintain comparability.
In light of Merck’s U.S. approval of NUMELVI, Zoetis affirmed the resilience of its KeyDerm franchise—$1.7 billion in 2025—with >90% customer satisfaction, a 45% U.S. chewable conversion, and ongoing differentiation via film-coated and oral therapies.
Near-term innovation includes Cytopoint long-acting expected to launch in late 2026 and advancing chronic kidney disease candidates, bolstering long-term growth and margin leverage.
In December, Zoetis executed a share repurchase using a capped-call debt structure, enhancing shareholder returns while preserving balance sheet flexibility.

Feb 26, 2026, 6:15 PM

Transcript

Zoetis discusses 2025 results and 2026 guidance at BofA Animal Health Summit

ZTS

Guidance Update

Product Launch

Share Buyback

Delivered 6% organic revenue growth and 7% adjusted net income growth in 2025, with double-digit EPS growth; guided 3–5% revenue and 3–6% adjusted net income growth for 2026.
Announced alignment of U.S. and international reporting to a January–December fiscal year starting Q1 2026, with restated quarterly results for 2024–2025.
Confirmed anticipated U.S. approval of Merck’s NUMELVI; reaffirmed confidence in KeyDerm (> $1.7 billion in 2025) and differentiation through film-coated Apoquel, chewable formulation and Cytopoint long-acting launch in late 2026.
Expects mid- to high-single-digit growth from companion animal franchises (Simparica, KeyDerm, pain therapeutics), mid-single-digit livestock growth, ~2–3 points of price and continued diagnostics expansion.
Highlighted a strong balance sheet and completed a capped-call equity repurchase in December as an efficient capital return amid perceived valuation disconnect.

Feb 26, 2026, 6:15 PM

Transcript

Zoetis discusses Q4 results and 2026 guidance at BofA Animal Health Summit

ZTS

Guidance Update

Share Buyback

Zoetis delivered 6% organic revenue growth and 7% adjusted net income growth in FY2025, with double-digit EPS growth, and guided for 3%–5% revenue and 3%–6% adjusted net income growth in FY2026.
The company will synchronize its U.S. and international reporting calendars to a January–December fiscal year starting Q1 2026, providing recast quarterly financials for 2024–2025 to ensure comparability.
Despite Merck’s Numelvi approval in the U.S., Zoetis underscores the strength of its KeyDerm franchise (>$1.7 billion in 2025) and differentiation via Apoquel film-coated, Apoquel Chewable, and Cytopoint (90%+ satisfaction), with a long-acting Cytopoint expected in late 2026.
Near-term pipeline catalysts include European/Canadian approvals for Lenivia and Portela, development of chronic kidney disease therapies, and other long-acting osteoarthritis assets, driving the next wave of growth.
In December, Zoetis executed a capped-call share repurchase to return capital efficiently while maintaining a strong balance sheet and investment capacity.

Feb 26, 2026, 6:15 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Zoetis.

Q4 2025

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