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Zoetis
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NYSE: ZTS Healthcare Pharma 🔎 Screen
S&P 500
$34.4B
Market Cap
20.9
P/E
2.50
PEG
28.5%
ROCE
66.0%
ROE
2.77
D/E
37.5%
OPM
-49.5%
% from 52W High
16
α RS
🔍 ZTS is showing a high-conviction setup because it matches 13 of 37 tracked screener presets and Sector RRG has Health Care in the Leading quadrant with the trail still strengthening. Net: Partial signal stack, not a recommendation. ? Conviction RRG
Sources
Conviction 13/37 · Health Care in Leading quadrant
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🌏 Global Investor Returns
Currency-adjusted total returns for ZTS including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Sector Averages
About

Zoetis Inc. engages in the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health solutions for the animal health industry in the United States and internationally.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding ZTS
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 252.0K $29.8M 0.05% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Mixed ~ Volatile 5 quarters Full tone analysis in Intelligence →
Weak quarter Investor Presentation One-Pager? Q2 2026
Revenue
$2.5B
Flat reported; -1% organic operational
Net Income
$691M
-5% reported
Adjusted Net Income
$781M
-2% organic operational
Adjusted Diluted EPS
$1.87
+4% YoY
What Went Right
  • Livestock delivered another strong quarter: global +11%, U.S. +23%, helped by cattle, poultry and New World screwworm demand.
  • International revenue grew 6% operationally, with Simparica franchise +19% and Simparica Trio +34%; emerging markets stayed broad-based.
  • Companion Animal Diagnostics grew 12%, and adjusted diluted EPS still rose 4% to $1.87 on disciplined SG&A (-4%) and $550M+ of buybacks.
What to Watch
  • U.S. companion animal revenue fell 11% and overall U.S. revenue declined 7%; July trends have not yet indicated market stabilization.
  • Global key dermatology fell 16% and U.S. derm was down 18%, with U.S. in-clinic derm share down 10 points year-over-year to ~86%.
  • Full-year guidance was cut sharply: revenue now -3% to -1% organic and adjusted net income -9% to -5%; gross-to-net pricing investments and generic competition on Cerenia/Convenia are pressuring price realization.
Management Guidance
  • FY26 revenue guidance: $9.12B–$9.32B, representing organic operational growth of (3)% to (1)%.
  • FY26 adjusted net income guidance: $2.57B–$2.62B, representing organic operational growth of (9)% to (5)%.
  • FY26 adjusted diluted EPS guidance: $6.15–$6.25; reported diluted EPS $5.55–$5.65.
  • FX is expected to be a ~$60M–$65M top-line and ~$30M bottom-line headwind; U.S. livestock growth should moderate to mid-single digits in H2.
Investor Lens
The near-term thesis weakens — management missed the quarter, lowered FY guidance, and said July data points have not stabilized. U.S. companion animal is the core problem: derm and parasiticides are being defended with gross-to-net investments that pressure reported price, while competition is intense and clinic visits keep falling. The portfolio offsets some pain — livestock, diagnostics and international all grew — and the 12 potential blockbuster pipeline supports the longer-term story. Watch quarterly share stabilization, long-acting Cytopoint approval, and whether FY26 is truly the trough before the franchise returns to growth.
From investor presentation · AI-generated analysis · Not investment advice
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📉 WEAK Q2 flat, FY cut; U.S. companion animal falls 7%
Revenue
Revenue was $2.5 billion, flat reported and down 1% on an organic operational basis. U.S. revenue fell 7% to $1.3 billion, while International grew 6% operationally to $1.2 billion; global companion animal declined 6% and livestock increased 11%.
Profitability
Reported net income was $691 million, down 5%; adjusted net income was $781 million, down 2% on an organic operational basis. Adjusted diluted EPS rose 4% to $1.87, helped by share repurchases.
Margins
Adjusted gross margin was 72.9%, down about 40 basis points reported, but up about 10 basis points excluding FX. Adjusted operating expenses fell 2% operationally, with SG&A down 4% and R&D up 4%.
Balance Sheet
The company repurchased over $550 million of shares in Q2. No other balance-sheet items such as cash, debt or free cash flow were discussed.
Key Risks
Management cited continued U.S. clinic visit declines, pet-owner price sensitivity, intensified competitive promotional activity in derm and parasiticides, and the impact of generic competition on Cerenia and Convenia. FY guidance embeds either persistent or accelerating pressure, with no market stabilization seen through July.
Outlook
FY26 revenue is guided to $9.12B–$9.32B with organic operational growth of -3% to -1%, and adjusted net income of $2.57B–$2.62B with organic growth of -9% to -5%. U.S. livestock growth is expected to moderate to mid-single digits in the second half.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Q2 saw flat revenue and a 2% decline in adjusted net income, with U.S. companion animal under pressure from declining clinic visits and heightened competition, while international and livestock segments grew. Full-year guidance was lowered, reflecting persistent headwinds and increased promotional activity.
Q1 2026 Q1 2026 2026-05-07
Q1 2026 saw flat organic revenue and 1% adjusted net income growth, with strong international and livestock performance offsetting U.S. and companion animal declines. Guidance for 2026 expects 2%-5% organic revenue growth amid ongoing macro and competitive headwinds.
Q4 2025 Q4 2025 2026-02-12
Delivered 6% organic revenue and 7% adjusted net income growth in 2025, led by international and livestock segments. 2026 guidance targets 3%-5% organic revenue growth amid ongoing macro and competitive pressures, with continued investment in innovation and disciplined capital allocation.
Q3 2025 Q3 2025 2025-11-04
Q3 2025 saw 4% organic revenue growth and 9% adjusted net income growth, with strong international and livestock performance offsetting U.S. companion animal softness. Guidance was narrowed, with stabilization expected in OA pain and continued above-market livestock growth.
Q2 2025 Q2 2025 2025-08-05
Delivered 8% organic revenue and 10% adjusted net income growth, led by double-digit gains in key franchises and strong international performance. Raised full-year guidance for both revenue and net income, while addressing competitive and tariff headwinds.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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