$ZTS · Zoetis Inc.
Zoetis reported Q3 FY2026 results: revenue of $2.4B, down 1% reported and organic operational; net income of $591M, down 18%; diluted EPS of $1.44, down 12%. Adjusted net income was $720M (down 5%) and adjusted diluted EPS was $1.75 (up 3%). U.S. segment revenue fell 6% to $1.2B while International rose 4% to $1.1B. The company narrowed FY2026 revenue guidance to $9.220B–$9.320B and raised adjusted diluted EPS guidance to $6.25–$6.35.
- Q3 revenue $2.4B, down 1% reported and organic operational.
- Net income $591M, down 18%; diluted EPS $1.44, down 12%.
- Adjusted diluted EPS $1.75, up 3% reported.
- U.S. segment revenue fell 6% to $1.2B; International rose 4% to $1.1B.
- FY2026 adjusted EPS guidance raised to $6.25–$6.35; revenue narrowed to $9.220B–$9.320B.
Extended-hours last trade $92.50, up 3.73% vs regular close of $89.17, signaling a positive reaction to the raised adjusted EPS guidance despite the revenue and net income declines.
Zoetis raised FY2026 adjusted EPS guidance despite declining revenue and net income, signaling confidence in cost discipline and International growth offsetting U.S. companion animal weakness.
Zoetis' U.S. companion animal weakness from dermatology generic competition and macro price sensitivity contrasts with International livestock strength, reflecting divergent animal health demand trends.
U.S. companion animal revenue fell 8% on macro-driven price sensitivity, competitive pressure in dermatology, and generic competition. Restructuring charges and certain significant items rose to $43M in Q3 from $4M a year ago.