Zoetis Narrows 2026 Revenue Outlook, Lifts Adjusted EPS

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter revenue was $2.39 billion as the animal-health company raised full-year adjusted diluted EPS to $6.25–$6.35.

Zoetis Inc. (ZTS), the animal-health company, reported third-quarter revenue of $2.39 billion, down 1% on both a reported and organic operational basis from a year earlier, and narrowed its full-year 2026 revenue outlook while raising adjusted earnings guidance.

The company now expects 2026 revenue of $9.220 billion to $9.320 billion, or organic operational growth of (2)% to (1)%, versus prior guidance of $9.120 billion to $9.320 billion, or (3)% to (1)%. It raised full-year adjusted net income to $2.600 billion to $2.640 billion, or organic operational growth of (7)% to (5)%, from $2.570 billion to $2.620 billion, or (9)% to (5)%, and lifted adjusted diluted EPS to $6.25 to $6.35 from $6.15 to $6.25. Guidance reflects foreign-exchange rates as of October 20, 2026.

Net income was $591 million, or $1.44 a share, down 18% and 12%, respectively, on a reported basis. Adjusted net income was $720 million, down 5% reported and 7% organic operational. Adjusted diluted EPS was $1.75, up 3% reported and 1% organic operational. Adjusted net income excludes a $129 million net impact of purchase-accounting adjustments, acquisition and divestiture-related costs and certain significant items.

Chief Executive Officer Kristin Peck said third-quarter performance was in line with expectations and that continued pressure in Companion Animal was partially offset by growth in Livestock and Diagnostics.

U.S. segment revenue was $1.2 billion, down 6% reported and organic operational. Companion animal revenue in the United States decreased 8%, which the company attributed to macro-driven price sensitivity and competitive pressure in dermatology, as well as generic competition. U.S. livestock revenue increased 5% on both bases, supported by strength across cattle, swine and poultry.

International segment revenue was $1.1 billion, up 4% reported and organic operational. International companion animal revenue increased 1% reported and remained flat organic operational, led by parasiticides and osteoarthritis pain and partially offset by lower sales of key dermatology products. International livestock revenue increased 8% reported and 9% organic operational, driven by growth in cattle and fish.

Restructuring charges and certain acquisition and divestiture-related costs were $43 million, versus $4 million a year earlier. Other (income)/deductions–net was a $72 million deduction, versus $12 million of income a year earlier. Certain significant items included $89 million of impairment charges on in-process research and development assets acquired from PetMedix in 2023, versus $27 million of asset impairment charges a year earlier, as well as $30 million of other restructuring charges and cost-reduction initiatives, versus $4 million.

Adjusted cost of sales was $694 million, or 29.0% of revenue. Adjusted selling, general and administrative expenses were $571 million and adjusted research and development expenses were $174 million.

In October, Zoetis received U.S. Food and Drug Administration approval for Convenia RTU for Dogs, a long-acting antibacterial injection, which the company said was the second major market approval this year and is expected to be available to veterinarians in the first quarter of 2027. The company also launched Lenivia for dogs in Great Britain, received Swiss approval for Portela for cats, and obtained U.S. FDA Emergency Use Authorization for Simparica Trio for New World screwworm infestations in dogs and puppies. It said it remains on track for expected 2026 product approvals, with select approvals anticipated in 2027 now expected in the fourth quarter of 2026.

Full-year certain significant items and acquisition and divestiture-related costs are now guided at approximately $210 million, versus approximately $150 million previously. Adjusted research and development expense guidance was lowered to $705 million to $715 million from $720 million to $730 million, and the effective tax rate on adjusted income was lowered to approximately 20% from approximately 20.5%. Reported diluted EPS guidance was lowered to $5.50 to $5.60 from $5.55 to $5.65.