olivLaw · US equity research
ZTS ZTS
Pharmaceutical Preparations · SIC 2834 · Vertical: Pharmaceutical Preparations (SIC 2834)
Zoetis Inc. is a global leader in animal health, with revenue of 9,467 million USD in fiscal 2025. Revenue in the second quarter of 2026 was roughly flat at 2.5 billion USD, but demand for companion animal products declined. The company revised its 2026 guidance to 9.12-9.32 billion USD, implying organic operational growth of (3)%-(1)%.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, ZTS (ZTS) stock was 89.20 USD (+7.48% on the day), with market capitalisation 36.9 bn USD, P/E 14.7 on diluted EPS of 6.07 USD over the last 12 months, dividend yield 2.34%, beta 0.55, 52-week range 69.10–131.10 USD. Latest reported quarter (Q2 2026): revenue of 2.5 bn USD (−0.2% YoY), net income of 691.0 m USD (−4.8% YoY), diluted EPS 1.65 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 77.2
- overbought (≥ 70)
- Bollinger (20, 2)
- 72.02 – 86.39
- above the upper band · %B 1.20 · band width 18.1%
- SMA 50 / 200
- 75.51 / 92.94
- mixed trend
- MACD (12, 26, 9)
- 2.65 / 1.94
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +24.9% | −1.1% | +26.0 pp | — |
| 3 months | +19.9% | −0.5% | +20.4 pp | — |
| 6 months | −19.8% | +4.4% | −24.2 pp | — |
| Year to date | −29.1% | +12.3% | −41.4 pp | — |
| 1 year | −28.3% | +13.5% | −41.9 pp | +25.9% |
| 3 years | −45.0% | +76.4% | −121.4 pp | +82.1% |
| 5 years | −58.8% | +63.7% | −122.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.4 bn | 2.3 bn | 2.2 bn | 2.5 bn | 2.4 bn | 2.4 bn | 2.3 bn | 2.5 bn |
| Cost of revenue | 701.0 m | 707.0 m | 618.0 m | 664.0 m | 683.0 m | 712.0 m | 641.0 m | 673.0 m |
| SG&A | 565.0 m | 625.0 m | 574.0 m | 614.0 m | 579.0 m | 619.0 m | 588.0 m | 592.0 m |
| Depreciation & amortisation | 121.0 m | 123.0 m | 119.0 m | 124.0 m | 124.0 m | 121.0 m | 119.0 m | 119.0 m |
| Interest expense | 57.0 m | 51.0 m | 54.0 m | 53.0 m | 58.0 m | 57.0 m | 62.0 m | 61.0 m |
| Pre-tax income | 874.0 m | 732.0 m | 773.0 m | 912.0 m | 887.0 m | 761.0 m | 758.0 m | 866.0 m |
| Income tax | 182.0 m | 151.0 m | 171.0 m | 186.0 m | 166.0 m | 158.0 m | 157.0 m | 175.0 m |
| Net income | 682.0 m | 581.0 m | 602.0 m | 726.0 m | 721.0 m | 603.0 m | 601.0 m | 691.0 m |
| Diluted EPS | 1.50 | 1.29 ≈ | 1.34 | 1.63 | 1.63 | 1.37 ≈ | 1.42 | 1.65 |
| Operating cash flow | 951.0 m ≈ | 905.0 m | 515.0 m | 605.0 m ≈ | 891.0 m ≈ | 893.0 m | 401.0 m | 655.0 m ≈ |
| Capex | 167.0 m ≈ | 216.0 m | 178.0 m | 146.0 m ≈ | 136.0 m ≈ | 161.0 m | 110.0 m | 117.0 m ≈ |
| Dividends paid | 197.0 m ≈ | 194.0 m | 224.0 m | 223.0 m ≈ | 222.0 m ≈ | 220.0 m | 224.0 m | 223.0 m ≈ |
| Share repurchases | 433.0 m ≈ | 553.0 m | 443.0 m | 338.0 m ≈ | 394.0 m ≈ | 2.1 bn | 606.0 m | 584.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 2 percentile of its own 43-quarter history (min 11.8, median 37.1, max 70.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.8 bn | 6.3 bn | 6.7 bn | 7.8 bn | 8.1 bn | 8.5 bn | 9.3 bn | 9.5 bn |
| Revenue YoY | +9.8% | +7.5% | +6.6% | +16.5% | +3.9% | +5.7% | +8.3% | +2.3% |
| Net income | 1.4 bn | 1.5 bn | 1.6 bn | 2.0 bn | 2.1 bn | 2.3 bn | 2.5 bn | 2.7 bn |
| Net income YoY | +65.3% | +5.0% | +9.2% | +24.4% | +3.8% | +10.9% | +6.1% | +7.5% |
| Diluted EPS | 2.93 | 3.11 | 3.42 | 4.27 | 4.49 | 5.07 | 5.47 | 6.02 |
| Diluted EPS YoY | +67.4% | +6.1% | +10.0% | +24.9% | +5.2% | +12.9% | +7.9% | +10.1% |
| net % | 24.5% | 24.0% | 24.5% | 26.2% | 26.2% | 27.4% | 26.9% | 28.2% |
| Free cash flow | 1.5 bn | 1.3 bn | 1.7 bn | 1.7 bn | 1.3 bn | 1.6 bn | 2.3 bn | 2.3 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 2.5 bn USD
- Financial debt
- 9.0 bn USD
- Net debt
- 6.6 bn USD
- Equity
- 3.4 bn USD
- Total assets
- 15.5 bn USD
- Debt / equity
- 2.65x
- Current ratio
- 3.12x
- ROE
- 64.7%
- ROA
- 18.0%
- FCF margin
- 24.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 6.7 bn | 7.8 bn | 8.1 bn | 8.5 bn | 9.3 bn | 9.5 bn | SEC (XBRL)· 12 Feb 2026verified |
| Cost of revenue | 2.1 bn | 2.3 bn | 2.5 bn | 2.6 bn | 2.7 bn | 2.7 bn | SEC (XBRL)· 12 Feb 2026verified |
| Gross profit | 4.6 bn ≈ | 5.5 bn ≈ | 5.6 bn ≈ | 6.0 bn ≈ | 6.5 bn ≈ | 6.8 bn ≈ | SEC (XBRL)· 12 Feb 2026derived |
| SG&A | 1.7 bn | 2.0 bn | 2.0 bn | 2.2 bn | 2.3 bn | 2.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Depreciation & amortisation | 441.0 m | 448.0 m | 465.0 m | 491.0 m | 497.0 m | 487.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Interest expense | 231.0 m | 224.0 m | 221.0 m | 239.0 m | 225.0 m | 222.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Pre-tax income | 2.0 bn | 2.5 bn | 2.7 bn | 2.9 bn | 3.1 bn | 3.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Income tax | 360.0 m | 454.0 m | 545.0 m | 596.0 m | 637.0 m | 687.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Net income | 1.6 bn | 2.0 bn | 2.1 bn | 2.3 bn | 2.5 bn | 2.7 bn | SEC (XBRL)· 12 Feb 2026verified |
| Diluted EPS | 3.42 | 4.27 | 4.49 | 5.07 | 5.47 | 6.02 | SEC (XBRL)· 12 Feb 2026verified |
| Weighted average diluted shares | 478.6 m | 476.7 m | 470.4 m | 462.3 m | 454.8 m | 443.8 m | SEC (XBRL)· 12 Feb 2026verified |
| Dividend per share | 0.85 | 1.08 | 1.35 | 1.56 | 1.80 | 2.03 | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.6 bn | 3.5 bn | 3.6 bn | 2.0 bn | 2.0 bn | 2.5 bn | SEC (XBRL)· 07 May 2026verified |
| Receivables | 1.0 bn | 1.1 bn | 1.2 bn | 1.3 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 07 May 2026verified |
| Inventories | 1.6 bn | 1.9 bn | 2.3 bn | 2.6 bn | 2.3 bn | 2.5 bn | SEC (XBRL)· 07 May 2026verified |
| Current assets | 6.6 bn | 6.9 bn | 7.5 bn | 6.3 bn | 6.0 bn | 6.8 bn | SEC (XBRL)· 07 May 2026verified |
| Property, plant & equipment, net | 2.2 bn | 2.4 bn | 2.8 bn | 3.2 bn | 3.4 bn | 3.7 bn | SEC (XBRL)· 07 May 2026verified |
| Goodwill | 2.7 bn | 2.7 bn | 2.7 bn | 2.8 bn | 2.7 bn | 2.8 bn | SEC (XBRL)· 07 May 2026verified |
| Intangibles (excl. goodwill) | 1.7 bn | 1.5 bn | 1.4 bn | 1.3 bn | 1.1 bn | 998.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Total assets | 13.6 bn | 13.9 bn | 14.9 bn | 14.3 bn | 14.2 bn | 15.5 bn | SEC (XBRL)· 07 May 2026verified |
| Accounts payable | 457.0 m | 436.0 m | 405.0 m | 411.0 m | 433.0 m | 445.0 m | SEC (XBRL)· 07 May 2026verified |
| Short-term debt | 4.0 m | 0 | 2.0 m | 3.0 m | 0 | 0 | SEC (XBRL)· 12 Feb 2026verified |
| Long-term debt | 6.6 bn | 6.6 bn | 6.6 bn | 6.6 bn | 5.2 bn | 9.0 bn | SEC (XBRL)· 12 Feb 2026verified |
| Current liabilities | 2.2 bn | 1.8 bn | 3.2 bn | 1.9 bn | 3.4 bn | 2.2 bn | SEC (XBRL)· 07 May 2026verified |
| Total liabilities | 9.8 bn | 9.4 bn | 10.5 bn | 9.3 bn | 9.5 bn | 12.1 bn | SEC (XBRL)· 07 May 2026verified |
| Equity | 3.8 bn | 4.5 bn | 4.4 bn | 5.0 bn | 4.8 bn | 3.4 bn | SEC (XBRL)· 07 May 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 2.1 bn | 2.2 bn | 1.9 bn | 2.4 bn | 3.0 bn | 2.9 bn | SEC (XBRL)· 12 Feb 2026verified |
| Capex | 453.0 m | 477.0 m | 586.0 m | 732.0 m | 655.0 m | 621.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Free cash flow | 1.7 bn ≈ | 1.7 bn ≈ | 1.3 bn ≈ | 1.6 bn ≈ | 2.3 bn ≈ | 2.3 bn ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Investing cash flow | -572.0 m | -458.0 m | -883.0 m | -777.0 m | -315.0 m | -748.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Financing cash flow | 123.0 m | -1.9 bn | -904.0 m | -3.1 bn | -2.7 bn | -1.9 bn | SEC (XBRL)· 12 Feb 2026verified |
| Dividends paid | 380.0 m | 474.0 m | 611.0 m | 692.0 m | 786.0 m | 889.0 m | SEC (XBRL)· 12 Feb 2026verified |
| Share repurchases | 250.0 m | 743.0 m | 1.6 bn | 1.1 bn | 1.9 bn | 3.2 bn | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 77 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 36.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation78
- Returns100
- Quality75
- Balance sheet100
- Growth57
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 26.68 – 262.40 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)72.76 – 129.81 (Mid 94.09)WACC 8.4% · starting FCFF 2.5 bn USD · terminal value share of EV 76%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 3.5%
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E115.26 – 262.40 (Mid 177.07)8 companies used · median multiple 29.1x · quartiles 19.0x – 43.2xABT, ALNY, BMY, PFE, REGN, RPRX, UTHR, VRTX
- Dividend discount (DDM)26.68 – 35.88 (Mid 30.60)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 77/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 27.5% | 67 (vs peers) | 10% |
| FCF conversion · Quality | 88.5% | 84 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 5.4% | 45 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | 10.3% | 68 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.1x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 14.7x | 78 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.3% | 79 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 12.3% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 38.4% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth57/100 · 2/2 factors with a value
- Quality75/100 · 2/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation78/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Zoetis Inc. (ZTS). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 9.5 bn USD in 2025; YoY growth 2.3%; net margin 27.5%; ROE 64.4%.
The estimated value range is 72.76–129.81 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 94.09 USD, the price of 89.20 USD leaves a potential of 5.5% (value / price − 1) and a margin of safety of 5.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 77/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 88.5%
- Current ratio: 3.1x
- P/E (TTM): 14.7x
- FCF yield: 6.3%
- Shareholder yield (distributions): 12.3%
- Payout ratio (FCF): 38.4%
What contradicts it
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Pharmaceutical Preparations (SIC 2834) · same industry (4-digit SIC) · compared with 12 companies
Only companies with a capitalisation between 4.2 bn and 271.1 bn (within 8× of the company's); 363 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ABTAbbott Laboratories | 200.1 bn | 43.0 | 9.2% | 9.7% | +5.7% | −10% / +11% |
| PFEPfizer Inc | 175.5 bn | 43.9 | 4.4% | 6.3% | −1.6% | +20% / +1% |
| VRTXVertex Pharmaceuticals Inc | 139.2 bn | 35.3 | 20.8% | 30.7% | +8.9% | +27% / +55% |
| BMYBristol-Myers Squibb Company | 131.2 bn | 14.2 | 44.1% | 18.5% | −0.2% | +30% / +30% |
| TEVATeva Pharmaceutical Industries Limited | 48.8 bn | 97.4 | 6.6% | 3.6% | +4.3% | +56% / +326% |
| ZTSZoetis Inc. | 36.9 bn | 14.7 | 64.4% | 27.5% | +2.3% | −28% / −45% |
| ROIVRoivant Sciences Ltd. | 27.6 bn | — | -6.2% | -3,535.0% | −71.6% | +84% / +300% |
| RPRXRoyalty Pharma plc | 26.2 bn | 47.7 | 6.9% | 25.7% | +5.1% | +69% / +150% |
| UTHRUnited Therapeutics Corporation | 25.9 bn | 23.0 | 19.1% | 38.6% | +10.6% | +25% / +154% |
| INSMInsmed Inc | 24.1 bn | — | -72.5% | -39.9% | +66.7% | −47% / +340% |
| VTRSViatris Inc. | 22.1 bn | — | -23.6% | -23.9% | −3.0% | +80% / +109% |
| ALNYAlnylam Pharmaceuticals, Inc. | 21.6 bn | 8.1 | 126.6% | 52.8% | +65.2% | −64% / −4% |
| REGNRegeneron Pharmaceuticals, Inc. | — | 20.6 | 14.9% | 28.5% | +1.0% | +19% / +13% |
1- and 3-year price returns: for ZTS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 55.46 Total return -36% · Per year -36% | 98.00 Total return 12% · Per year 12% | 147.55 Total return 69% · Per year 69% |
| 3 years | 54.82 Total return -33% · Per year -12% | 108.91 Total return 30% · Per year 9% | 179.91 Total return 112% · Per year 28% |
| 5 years | 54.20 Total return -30% · Per year -7% | 121.05 Total return 50% · Per year 8% | 219.37 Total return 165% · Per year 22% |
- Exit P/E± 27.23
- Net margin± 19.06
- Annual revenue growth± 15.51
- Annual dilution± 1.60
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results).
In brief
Zoetis Inc. is a global leader in animal health, with revenue of 9,467 million USD in fiscal 2025 1. Revenue in the second quarter of 2026 was roughly flat at 2.5 billion USD, but demand for companion animal products declined 3. The company revised its 2026 guidance to 9.12-9.32 billion USD, implying organic operational growth of (3)%-(1)% 3.
SWOT
Strengths
- Zoetis has a diversified portfolio spanning companion animal and livestock products and a direct presence in many countries 1. The company invests in research and development and has a long record of lifecycle innovation 1.
- Recent launches such as Lenivia and Portela and the approvals received in 2026 show an ability to bring new products to key markets 3.
- Its veterinarian distribution channel and long-standing customer relationships support sales over time 1.
Weaknesses
Opportunities
- If the product pipeline, which includes candidates that could become major sellers, produces approvals, the company could resume growth 3.
- Expanding diagnostics, including through the acquisition of a veterinary teleradiology platform, could open new revenue sources 3.
- Demand for livestock products, supported by the need for animal protein, could keep supporting the livestock segment 13.
Threats
- Generic competition and pricing pressure could reduce sales of products that have lost patent protection 1.
- Changes in distribution channels, such as retail and online sales, could reduce the role of the veterinarian 1.
- Trade tensions and economic conditions could influence demand and costs in several markets 12.
Risks
- Dependence on key productshigh
A few products generate a significant share of revenue, so safety, regulatory or competitive problems with one of them could materially affect results 1.
- Generic competitionhigh
Generic versions of products that have lost patent protection can reduce sales, and this effect could grow as more patents expire 1.
- Lower demand for companion animal caremedium
Fewer clinic visits and price sensitivity reduced U.S. sales in the second quarter of 2026 3. If the trend continues, guidance could be affected 3.
- Tariffs and currency exposuremedium
Tariffs and currency movements could change revenue and costs, particularly for operations outside the U.S. 2.
- Customer consolidationlow
Concentration of veterinary clinics and buying groups could press prices, with an effect on margins 1.
Investment thesis
What would need to be true (bull case)
- If the new product pipeline and the launches in Europe and Canada translate into sales, the company could return to steadier growth 3.
- Rising livestock sales in the U.S. show that this segment can partly offset declines in companion animal care 3.
- The diversified portfolio and presence in more than 45 countries provide a broad base for growth 1.
What would break the thesis
What to watch
- Trend in U.S. companion animal sales and the generic effect on key productsQ3 2026
- Delivery against the revised 2026 guidance for revenue and adjusted net income2026
- Major-market approvals and launches from the new product pipeline2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (05 Nov 2026 · results).
The business
The business is organized into two geographic segments: the United States, with 5,097 million USD in fiscal 2025, and International, with 4,254 million USD 1. The company markets directly to veterinarians and livestock producers in about 45 countries and uses distributors where it has no direct presence 12. The company was incorporated in Delaware in 2012 as a business unit of Pfizer 1.
Its innovation strategy includes launched products and lifecycle extensions such as Simparica Trio, Librela and Lenivia, along with investments in diagnostics, from the Vetscan instruments to the Vetscan Imagyst platform 13. A large share of revenue comes from a small number of top-selling products, so performance depends heavily on them 1.
Market context
The animal health market is growing, driven by spending on companion animal care, economic development and rising demand for animal protein 1. The company says it is a market leader in nearly all major regions where it operates, but competition and pricing remain constant pressures 1.
With sales in over 45 countries and a revenue mix split between companion animals and livestock, the market is diversified and regional differences matter 1. Demand for companion animal products depends on clinic visit volumes, while demand for livestock products depends on herd health 3.
Trends
- Fewer veterinary clinic visitsheadwind
Lower clinic visits and pet owner price sensitivity reduced demand for parts of the companion animal portfolio in the second quarter of 2026 3. If this continues, revenue in the U.S. segment could remain under pressure 3.
- Generic competitionheadwind
Generic products reduced U.S. sales of older products such as Rimadyl and Draxxin 1. Competition also increased in key categories, which may weigh on pricing 3.
- Demand for livestock productstailwind
Livestock sales, particularly for cattle and poultry, rose in the second quarter of 2026, supported by producer economics and disease outbreak activity 3. If these conditions persist, the livestock segment could partly offset declines elsewhere.
- Trade tariffs and currency ratesmixed
Tariffs and trade measures could affect demand and product costs, and currency movements influence revenue outside the U.S. 2. About 46% of revenue was denominated in foreign currencies in the first half of 2026 2.
Competitive position
The animal health industry is highly competitive, with standalone companies, divisions of large pharmaceutical companies and start-up firms 1. Generic producers have entered markets for products that no longer have patent protection, and industry consolidation could strengthen the bargaining power of competitors 1.
The company says it is the largest in the industry by revenue, but competition varies by region, species and product category 1. In the second quarter of 2026, competition increased in key companion animal categories 3.
- Animal health divisions of large pharmaceutical companies
Large pharmaceutical companies with in-house animal health divisions are cited as major competitors, without being named in the sources provided.
- Standalone animal health companies
Companies focused only on animal health, competing in medicines, vaccines and diagnostics, form a distinct group of competitors.
- Generic product makers
Makers of generic versions of products that have lost patent protection have reduced sales of some Zoetis products in the U.S. market.
- Animal health start-ups
Newly founded firms in the field are cited as an additional source of competition, particularly in research and development.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report05 Nov 2026Results of operations · Financial statements and exhibits
- Current report13 Oct 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report08 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Current report06 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report22 May 2026Departure or appointment of officers · Shareholder vote
- Current report20 May 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / ZTS · 12 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / ZTS · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / ZTS · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.