Zoetis reported a mixed third quarter, with revenue slipping 1% and reported net income falling 18% from a year earlier. Growth in its international business was offset by a sharper decline in the U.S.; the company said pressure in companion-animal products was partly offset by livestock and diagnostics.
The animal-health company also narrowed its 2026 revenue guidance and raised its adjusted earnings-per-share outlook. The revised guidance figures are not included in the material provided.
Key details
- Revenue was $2.4 billion, down 1% both as reported and on an organic operational basis.
- U.S. revenue was $1.2 billion, down 6% on both measures. International revenue was $1.1 billion, up 4% on both measures.
- Net income was $591 million, down 18% from the third quarter of 2025. Diluted earnings per share fell 12% to $1.44.
- On an adjusted basis, net income was $720 million, down 5% as reported and 7% on an organic operational basis. Adjusted diluted earnings per share rose 3% as reported and 1% on an organic operational basis, to $1.75.
- CEO Kristin Peck said quarterly performance was in line with expectations. She pointed to continued pressure in companion animal, partly offset by growth in livestock and diagnostics.
- Zoetis narrowed its full-year 2026 revenue guidance and raised its adjusted EPS guidance. The provided announcement does not state the revised ranges.
What changes for investors
The quarter’s results show weakness concentrated in the U.S. and in companion animal, while international revenue grew and livestock and diagnostics helped offset pressure. Zoetis raised its adjusted EPS outlook while narrowing its revenue outlook, but the revised ranges are needed to assess the scale of those changes.