Zoetis cuts full-year 2026 guidance as companion animal demand softens
Zoetis reported second-quarter revenue of $2.5 billion and lowered its 2026 revenue and adjusted EPS outlook, citing weaker U.S. companion animal sales.
Zoetis Inc. reported financial results for the second quarter of 2026 on August 6, 2026. Revenue was $2.5 billion, flat compared with the second quarter of 2025 but down 1% on an organic operational basis.1 Net income was $691 million, or $1.65 per diluted share, while adjusted net income was $781 million, or $1.87 per diluted share.1
The company revised its full-year 2026 guidance downward. Zoetis now expects revenue of $9.120 billion to $9.320 billion, reflecting organic operational growth of (3)% to (1)%, adjusted net income of $2.570 billion to $2.620 billion, reported diluted EPS of $5.55 to $5.65, and adjusted diluted EPS of $6.15 to $6.25.1
Chief Executive Officer Kristin Peck said quarterly results reflected a more pressured companion animal market, with lower clinic visits and pet owner price sensitivity reducing demand across parts of the portfolio and heightening competition in key categories.1
By segment, U.S. revenue totaled $1.3 billion, down 7%, with companion animal sales falling 11% amid persistent price sensitivity affecting the dermatology franchise and Simparica Trio, generic competition against Cerenia and Convenia, and lower Librela sales.1 U.S. livestock sales rose 23%, supported by strength in cattle and poultry.1 Internationally, revenue was $1.2 billion, up 8% on a reported basis, with companion animal sales growing 8%, led by the parasiticides portfolio including Simparica Trio, Revolution, and Stronghold.1
On the pipeline, Zoetis received European Commission marketing authorization in July for Poulvac Procerta HVT-ND, aimed at protecting poultry against Newcastle and Marek's disease.1 Dectomax-CA1 became the first parasite control product to receive FDA conditional approval for prevention and treatment of New World screwworm myiasis in beef cattle, and Dectomax received emergency use authorization for additional species.1 In July, Zoetis also completed its acquisition of VitalRADS, a veterinary teleradiology services platform.1
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