Zoetis Lifts Adjusted EPS Outlook as Livestock Offsets Soft Pet Sales

Zoetis Inc. reported third-quarter revenue of $2.391 billion, down 1% from a year earlier, and raised its full-year 2026 adjusted diluted earnings outlook to $6.25 to $6.35 a share, according to the animal-health company’s Form 8-K and press release furnished to the Securities and Exchange Commission on Thursday.

Adjusted diluted earnings were $1.75 a share, up 3% from a year earlier, while GAAP diluted earnings fell 12% to $1.44. Net income dropped 18% to $591 million. Adjusted net income was $720 million, down 5%. 24/7 Wall St. said the adjusted figure cleared a $1.51 consensus estimate and that revenue topped a $2.30 billion estimate.

U.S. pets soft, livestock stronger

U.S. segment revenue fell 6% to $1.246 billion. Companion-animal sales in the United States declined 8%, which Zoetis linked to macro-driven price sensitivity, competition in dermatology and generics. U.S. livestock revenue rose 5%, with strength across cattle, swine and poultry, the company said in Exhibit 99.1.

International revenue climbed 4% to $1.116 billion. Livestock sales outside the United States rose 8% on a reported basis and 9% on an organic operational basis, led by cattle and fish. Global livestock revenue was $797 million, up 7%, including a 23% increase in fish sales to $98 million.

Guidance and pipeline

Zoetis narrowed full-year revenue guidance to $9.220 billion to $9.320 billion and raised adjusted net income guidance to $2.600 billion to $2.640 billion. Reported diluted EPS guidance was set at $5.50 to $5.60. Chief Executive Kristin Peck said in the release that the quarter was in line with expectations and that livestock and diagnostics growth partly offset continued companion-animal pressure.

In October, the company said, the Food and Drug Administration approved Convenia RTU for Dogs, a long-acting antibacterial injection expected to reach veterinarians in the first quarter of 2027. Simparica Trio received an FDA Emergency Use Authorization for treating New World screwworm infestations in dogs and puppies.

Sources: Zoetis Inc. Form 8-K / Exhibit 99.1 (SEC EDGAR), StockTitan (8-K mirror), 24/7 Wall St.