Zoetis Reports Strong Q4 2025 Earnings but Stock Declines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy ZTS?
Source: seekingalpha
- Earnings Beat: Zoetis reported Q4 2025 revenue of $2.4 billion, reflecting a 3% YoY increase that surpassed expectations, driven by strong international performance contributing $1.1 billion with an 8% growth.
- Slowing Revenue Outlook: The company projects 2026 revenue between $9.825 billion and $10.025 billion, with the midpoint exceeding the consensus of $9.91 billion, indicating only a 5% YoY growth, suggesting a slowdown in topline growth.
- U.S. Market Challenges: U.S. sales declined by 2%, with livestock product sales dropping 6% due to the divestiture of its medicated feed additive portfolio, highlighting pressures in this segment.
- Improved Profitability: Despite challenges, Zoetis achieved an adjusted net income of $648 million in Q4, beating consensus by $0.08 per share, while gross margins in the U.S. segment improved to 82.8%, indicating enhanced profitability amidst operational headwinds.
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Analyst Views on ZTS
Wall Street analysts forecast ZTS stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 125.640
Low
130.00
Averages
154.20
High
200.00
Current: 125.640
Low
130.00
Averages
154.20
High
200.00
About ZTS
Zoetis Inc. is a global animal health company. The Company is focused on the discovery, development, manufacture and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests and precision animal health. The Company operates through two segments: the United States (U.S.) and International. Within each of these operating segments, it offers a diversified product portfolio, including parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceutical, and animal health diagnostics, for both companion animal and livestock customers. It directly markets its products in approximately 45 countries across North America, Europe, Africa, Asia, Australia and South America. The Company is engaged in commercializing products across eight species: dogs, cats and horses (collectively, companion animals) and cattle, poultry, swine, fish and sheep (collectively, livestock).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Zoetis Reports Strong Q4 2025 Earnings, Beats Expectations
- Earnings Beat: Zoetis reported an adjusted EPS of $1.48 for Q4 2025, surpassing the consensus estimate of $1.40, indicating robust profitability amidst a competitive landscape.
- Stable Sales Growth: The company achieved sales of $2.387 billion, a 3% year-over-year increase, nearly aligning with the consensus of $2.36 billion, reflecting stable performance across multiple product lines.
- Segment Performance: Revenue from the U.S. segment was $1.2 billion, down 2% year-over-year but flat on an organic operational basis, demonstrating the effectiveness of Zoetis's diversified strategy in both companion and livestock products.
- Positive 2026 Outlook: Zoetis forecasts adjusted EPS for 2026 between $7.00 and $7.10, exceeding the consensus of $6.80, showcasing confidence in future growth despite competitive pressures in key segments.
See More
Zoetis Q4 2025 Earnings Beat Expectations
- Earnings Beat: Zoetis reported an adjusted EPS of $1.48 for Q4 2025, surpassing the consensus estimate of $1.40, indicating strong performance in the animal health sector and boosting investor confidence.
- Positive Market Reaction: Following the earnings report, Zoetis's stock price increased, reflecting market optimism regarding the company's future growth potential, which may attract more investor interest.
- Enhanced Competitive Position: The robust earnings report highlights Zoetis's increasing competitiveness in the animal health market, particularly in vaccine and therapeutic product sales, potentially laying the groundwork for future market share growth.
- Optimistic Future Outlook: The management team expresses a positive outlook for future performance, anticipating continued benefits from global demand for animal health products, further driving revenue and profit growth.
See More
Zoetis Inc. Q4 2025 Earnings Call Insights
- Full Year Growth: Zoetis achieved 6% organic revenue growth and 7% adjusted net income growth for 2025, aligning with expectations, with international markets leading at 8%, showcasing the company's global footprint advantage.
- Product Line Performance: In 2025, livestock business saw an 8% organic revenue growth while companion animal business grew by 5%, with the Simparica franchise growing 12%, indicating strong performance in the pet health sector.
- Future Outlook: Zoetis projects organic revenue growth of 3% to 5% for 2026, with adjusted net income expected between $2.975 billion and $3.025 billion, as the companion animal business remains a key growth driver despite competitive pressures.
- Financial Results Overview: In Q4 2025, Zoetis reported $2.4 billion in revenue, a 3% increase year-over-year, with adjusted net income at $648 million, also up 3%, reflecting the company's resilience in a complex market environment.
See More
Zoetis Reports Strong Q4 2025 Earnings but Stock Declines
- Earnings Beat: Zoetis reported Q4 2025 revenue of $2.4 billion, reflecting a 3% YoY increase that surpassed expectations, driven by strong international performance contributing $1.1 billion with an 8% growth.
- Slowing Revenue Outlook: The company projects 2026 revenue between $9.825 billion and $10.025 billion, with the midpoint exceeding the consensus of $9.91 billion, indicating only a 5% YoY growth, suggesting a slowdown in topline growth.
- U.S. Market Challenges: U.S. sales declined by 2%, with livestock product sales dropping 6% due to the divestiture of its medicated feed additive portfolio, highlighting pressures in this segment.
- Improved Profitability: Despite challenges, Zoetis achieved an adjusted net income of $648 million in Q4, beating consensus by $0.08 per share, while gross margins in the U.S. segment improved to 82.8%, indicating enhanced profitability amidst operational headwinds.
See More
Zoetis Reports Higher Q4 Earnings and Revenue
- Earnings Growth: Zoetis reported Q4 net income of $603 million, or $1.37 per share, up from $581 million and $1.29 last year, indicating a significant improvement in profitability that exceeded analyst expectations of $1.40.
- Revenue Increase: The company’s quarterly revenue rose 3% to $2.38 billion, surpassing the market expectation of $2.36 billion, reflecting sustained demand and competitiveness in the animal health market.
- 2026 Outlook: Zoetis anticipates net income for 2026 to be between $2.825 billion and $2.875 billion, with EPS projected between $6.65 and $6.75, demonstrating confidence in future growth and a positive market outlook.
- Stock Price Reaction: In pre-market trading, Zoetis shares rose 2.58% to $132, reflecting investor optimism regarding the company’s performance and future prospects.
See More
Zoetis Q4 Earnings Exceed Expectations
- Strong Earnings Performance: Zoetis reported a Q4 Non-GAAP EPS of $1.48, beating expectations by $0.08, which underscores the company's robust profitability and reinforces investor confidence.
- Steady Revenue Growth: The company achieved revenue of $2.39 billion in Q4, reflecting a 3.0% year-over-year increase and surpassing market expectations by $30 million, indicating sustained growth potential in the pet health and animal care sectors.
- Positive Future Outlook: Zoetis provided full-year 2026 revenue guidance of $9.825 to $10.025 billion, exceeding the consensus of $9.91 billion, with diluted EPS projected between $6.65 and $6.75, showcasing the company's confidence in future performance.
- Organic Growth Expectations: The company anticipates delivering 3% to 5% organic operational growth in revenue, which not only highlights Zoetis's competitive position in the market but also signals long-term growth potential for investors.
See More
Zoetis Reports Strong Q4 2025 Earnings, Beats Expectations
- Earnings Beat: Zoetis reported an adjusted EPS of $1.48 for Q4 2025, surpassing the consensus estimate of $1.40, indicating robust profitability amidst a competitive landscape.
- Stable Sales Growth: The company achieved sales of $2.387 billion, a 3% year-over-year increase, nearly aligning with the consensus of $2.36 billion, reflecting stable performance across multiple product lines.
- Segment Performance: Revenue from the U.S. segment was $1.2 billion, down 2% year-over-year but flat on an organic operational basis, demonstrating the effectiveness of Zoetis's diversified strategy in both companion and livestock products.
- Positive 2026 Outlook: Zoetis forecasts adjusted EPS for 2026 between $7.00 and $7.10, exceeding the consensus of $6.80, showcasing confidence in future growth despite competitive pressures in key segments.
See More
Zoetis Q4 2025 Earnings Beat Expectations
- Earnings Beat: Zoetis reported an adjusted EPS of $1.48 for Q4 2025, surpassing the consensus estimate of $1.40, indicating strong performance in the animal health sector and boosting investor confidence.
- Positive Market Reaction: Following the earnings report, Zoetis's stock price increased, reflecting market optimism regarding the company's future growth potential, which may attract more investor interest.
- Enhanced Competitive Position: The robust earnings report highlights Zoetis's increasing competitiveness in the animal health market, particularly in vaccine and therapeutic product sales, potentially laying the groundwork for future market share growth.
- Optimistic Future Outlook: The management team expresses a positive outlook for future performance, anticipating continued benefits from global demand for animal health products, further driving revenue and profit growth.
See More
Zoetis Inc. Q4 2025 Earnings Call Insights
- Full Year Growth: Zoetis achieved 6% organic revenue growth and 7% adjusted net income growth for 2025, aligning with expectations, with international markets leading at 8%, showcasing the company's global footprint advantage.
- Product Line Performance: In 2025, livestock business saw an 8% organic revenue growth while companion animal business grew by 5%, with the Simparica franchise growing 12%, indicating strong performance in the pet health sector.
- Future Outlook: Zoetis projects organic revenue growth of 3% to 5% for 2026, with adjusted net income expected between $2.975 billion and $3.025 billion, as the companion animal business remains a key growth driver despite competitive pressures.
- Financial Results Overview: In Q4 2025, Zoetis reported $2.4 billion in revenue, a 3% increase year-over-year, with adjusted net income at $648 million, also up 3%, reflecting the company's resilience in a complex market environment.
See More
Zoetis Reports Strong Q4 2025 Earnings but Stock Declines
- Earnings Beat: Zoetis reported Q4 2025 revenue of $2.4 billion, reflecting a 3% YoY increase that surpassed expectations, driven by strong international performance contributing $1.1 billion with an 8% growth.
- Slowing Revenue Outlook: The company projects 2026 revenue between $9.825 billion and $10.025 billion, with the midpoint exceeding the consensus of $9.91 billion, indicating only a 5% YoY growth, suggesting a slowdown in topline growth.
- U.S. Market Challenges: U.S. sales declined by 2%, with livestock product sales dropping 6% due to the divestiture of its medicated feed additive portfolio, highlighting pressures in this segment.
- Improved Profitability: Despite challenges, Zoetis achieved an adjusted net income of $648 million in Q4, beating consensus by $0.08 per share, while gross margins in the U.S. segment improved to 82.8%, indicating enhanced profitability amidst operational headwinds.
See More
Zoetis Reports Higher Q4 Earnings and Revenue
- Earnings Growth: Zoetis reported Q4 net income of $603 million, or $1.37 per share, up from $581 million and $1.29 last year, indicating a significant improvement in profitability that exceeded analyst expectations of $1.40.
- Revenue Increase: The company’s quarterly revenue rose 3% to $2.38 billion, surpassing the market expectation of $2.36 billion, reflecting sustained demand and competitiveness in the animal health market.
- 2026 Outlook: Zoetis anticipates net income for 2026 to be between $2.825 billion and $2.875 billion, with EPS projected between $6.65 and $6.75, demonstrating confidence in future growth and a positive market outlook.
- Stock Price Reaction: In pre-market trading, Zoetis shares rose 2.58% to $132, reflecting investor optimism regarding the company’s performance and future prospects.
See More
Zoetis Q4 Earnings Exceed Expectations
- Strong Earnings Performance: Zoetis reported a Q4 Non-GAAP EPS of $1.48, beating expectations by $0.08, which underscores the company's robust profitability and reinforces investor confidence.
- Steady Revenue Growth: The company achieved revenue of $2.39 billion in Q4, reflecting a 3.0% year-over-year increase and surpassing market expectations by $30 million, indicating sustained growth potential in the pet health and animal care sectors.
- Positive Future Outlook: Zoetis provided full-year 2026 revenue guidance of $9.825 to $10.025 billion, exceeding the consensus of $9.91 billion, with diluted EPS projected between $6.65 and $6.75, showcasing the company's confidence in future performance.
- Organic Growth Expectations: The company anticipates delivering 3% to 5% organic operational growth in revenue, which not only highlights Zoetis's competitive position in the market but also signals long-term growth potential for investors.
See More
