For the second quarter of 2026, Zoetis is expected to report consensus revenue of $2.51 billion (+0.4% YoY) and adjusted EPS of $1.84 (+4.5% YoY), while the stock trades at $75.56, significantly below the $118.33 analyst price target.
Investors are primarily focused on the stabilization of the U.S. Companion Animal segment, specifically looking for Q2 2026 revenue to hit the $1.14 billion consensus estimate following a sharp 11% decline in the previous quarter.
This focus stems from mounting competitive pressure in the dermatology and parasiticide markets from rivals like Elanco and Merck, alongside safety concerns regarding the osteoarthritis drug Librela. Management’s ability to defend its market share and maintain its narrowed full-year 2026 guidance will be critical for a stock that has lost nearly half its value over the past year.