Zoetis reported third-quarter revenue of $2.4 billion, down 1% from a year earlier, as a 6% decline in U.S. sales outweighed growth internationally. Net income and reported earnings per share also fell, while adjusted diluted EPS rose modestly.
The animal-health company said performance was in line with expectations and cited continued pressure in Companion Animal, partly offset by growth in Livestock and Diagnostics. It also narrowed its full-year 2026 revenue guidance and raised its adjusted EPS guidance; the announcement provided here does not include the revised ranges.
Key details
- Revenue: $2.4 billion, down 1% both as reported and on an organic operational basis.
- U.S. segment: Revenue was $1.2 billion, down 6% on both measures.
- International segment: Revenue was $1.1 billion, up 4% on both measures.
- Net income: $591 million, down 18% from the year-earlier quarter.
- Diluted EPS: $1.44, down 12%.
- Adjusted net income: $720 million, down 5% as reported and 7% on an organic operational basis.
- Adjusted diluted EPS: $1.75, up 3% as reported and 1% on an organic operational basis.
- Full-year outlook: Zoetis narrowed its 2026 revenue guidance and raised its adjusted EPS guidance. The revised figures are not included in the announcement text provided here.
Plain-English implications
Zoetis’s quarterly results show a divergence between its U.S. and international businesses, with international growth not enough to offset the U.S. decline. Adjusted EPS increased slightly even as adjusted net income fell, while reported net income and EPS declined more sharply. The company attributed the operating backdrop in part to Companion Animal pressure, with Livestock and Diagnostics providing an offset.