Zoetis reported flat second quarter revenue of $2.47 billion, missing consensus estimates of $2.51 billion. Adjusted EPS came in at $1.87, slightly ahead of the $1.84 analyst forecast. The company significantly lowered its full-year 2026 guidance, citing a more pressured U.S. Companion Animal market, which saw sales decline 11% year-over-year.
Key Highlights
- U.S. Companion Animal revenue, a key investor focus, came in at $1.044 billion, a 11% YoY decline and a miss on the $1.14 billion consensus estimate.
- Weakness in the companion animal segment was attributed to lower clinic visits, pet owner price sensitivity, and heightened competition in dermatology and parasiticides.
- The company's U.S. Livestock segment provided a partial offset, with sales growing 23% to $222 million, supported by favorable cattle economics and poultry vaccine sales.
- Zoetis cut its full-year 2026 revenue guidance to a range of $9.12-$9.32 billion, down from $9.68-$9.96 billion, and lowered its adjusted EPS forecast to $6.15-$6.25 from $6.85-$7.00.