10-K · February 13, 2025
Zoetis positions itself as a global leader in animal health with a diversified portfolio across eight species and seven major product categories. For the year ended December 31, 2024 the company reported U.S. revenue of…
Earnings analysis · 10-Q
ZTS earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Zoetis reported Q1 2026 revenues of $2.26 billion, a 3% increase from the previous year, but fell short of expectations with EPS of $1.53, down from $1.61 estimates. Segment performance showed U.S. revenue decline,…
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Zoetis reported Q1 2026 revenues of $2.26 billion, a 3% increase from the previous year, but fell short of expectations with EPS of $1.53, down from $1.61 estimates. Segment performance showed U.S. revenue decline, especially in companion animal products, while international growth was strong, driven by livestock sales, as foreign exchange rates positively impacted revenue by $76 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.53
- Gross margin
- 70.3%
- Segment
- U.S. Companion Animal: $865M, U.S. Livestock: $225M, International Companion Animal: $654M, International Livestock: $495M
What stood out
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Revenue Growth Reflects FX Impact
Total revenue increased by $64 million, or 3%, year-over-year, with an operational decline of 1%, benefitting from a $76 million foreign exchange increase.
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Strong International Segment Performance
International segment revenue grew by $164 million, or 17%, driven by a 19% increase in livestock products, growing operationally by 12%.
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Adjusted EPS Growth
Adjusted diluted EPS increased by 9% to $1.53, up from $1.41 in the prior period.
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Improved Gross Margin
Gross margin improved slightly to 70.3% in Q1 2026 from 69.5% in Q1 2025.
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Decrease in SG&A Expenses
SG&A expenses increased only 2%, reflecting controlled spending in the face of revenue headwinds.
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Higher R&D Investment
Research and development expenses increased by 11%, from $162 million to $180 million, reflecting the company's focus on innovation.
What to watch
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U.S. Revenue Decline
U.S. revenue decreased by $93 million or 8%, primarily due to an 11% drop in companion animal product sales.
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Increased Interest Expenses
Interest expense rose 15% to $62 million, impacted by a higher average debt balance.
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Restructuring Charges
New restructuring charges of $22 million, primarily due to costs tied to employee terminations.
Management's outlook
Full-year guidance revised due to competitive pressures, reflecting cautious optimism.
Earlier filings 4
10-Q · August 6, 2024
Zoetis reported Q2 revenue of $2,361 million, up $181 million (+8.3% YoY) and beating the consensus of $2,310 million. Diluted EPS was $1.37, modestly above prior quarter but down versus Q2 2023 ($1.45). Operating…
10-Q · May 4, 2023
Zoetis reported Q1 revenue of $2,000 million, up $14 million versus Q1 2022, while diluted EPS declined to $1.19 from $1.26 a year ago. Operating income compressed (current period operating income $707 million vs prior…
10-Q · November 3, 2022
Zoetis reported Q3 revenue of $2,002 million (vs. $1,990 million a year ago) and diluted EPS of $1.13 (vs. $1.16 a year ago). Companion animal sales were the driver, rising to $1,271 million while livestock fell to $708…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.