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Zoetis Q1 2026 Revenue Misses Expectations at $2.3B; Stock Falls 1.17%

Zoetis reported Q1 2026 revenue of $2.3 billion, up 3% YoY but below consensus. Adjusted EPS of $1.53 missed Wall Street expectations of $1.60. U.S. pet segment revenue declined 11%.

Justin Jeon·May 7, 2026 at 21:03·4 min read

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AIKey Summary

Zoetis posted Q1 2026 revenue of $2.3B but adjusted EPS of $1.53 missed consensus at $1.60, with U.S
pet sales down 11%
Stock fell 1.17% to $111.22 on revised lower guidance amid weakening pet owner spending

Zoetis disclosed Q1 2026 revenue of $2.3 billion in its SEC 8-K filing. Adjusted earnings per share (EPS) came in at $1.53, falling short of Wall Street consensus of $1.60.

📊 Stock Price at Report Time (May 7, 2026, 9:02 p.m. KST)
$111.22 ▼ -1.17%
₩161,380 (1451 KRW/USD)

Q1 Performance Overview

Zoetis' first-quarter revenue grew 3% year-over-year. However, declining pet owner spending and intensifying competition weighed heavily on U.S. results. Net income remained flat at $601 million compared to the prior year period.

Revenue: $2.3 billion, +3% YoY
Net Income: $601 million, flat YoY
Reported EPS: $1.42, +6% YoY
Adjusted EPS: $1.53, missed consensus of $1.60
Adjusted Net Income: $646 million, +2% YoY

2026 Guidance

Zoetis revised its 2026 full-year revenue guidance to $9.68 billion–$9.96 billion, with organic growth projected at 2–5%. Adjusted EPS guidance was also narrowed to $6.85–$7.00.

CEO Kristin Peck noted that "pet owners are demonstrating heightened price sensitivity, resulting in reduced veterinary visits and softening demand for premium products." She added, "We remain confident in our ability to drive sustained value creation, underpinned by more than 12 potential blockbuster pipeline candidates and our diversified business portfolio."

Market Reaction

Zoetis shares declined 1.17% to $111.22 as of 9:02 p.m. KST on May 7, 2026. Reports attributed the sell-off to both lower-than-expected guidance and earnings disappointment. The adjusted EPS of $1.53 fell short of the FactSet consensus estimate of $1.60.

Business Segment Performance

U.S. Revenue: $1.1 billion, -8% YoY | Pet Products -11%, Livestock Products +7%
International Revenue: $1.1 billion, +17% reported, +10% organic | Pet Products +15%, Livestock Products +19%
International segment benefited from approximately $100 million in timing-related pricing benefits from select markets

This article was automatically generated based on SEC 8-K filings and press reports, intended for rapid dissemination of key data following announcement. Investors are advised to review official company disclosures before making trading decisions. Stock prices reflect the time of publication and may differ from current levels.

ZTS

Frequently Asked Questions

What does Zoetis do?

Zoetis is the world's largest animal health company, producing pharmaceuticals, vaccines, and diagnostic products for companion animals (dogs, cats, etc.) and livestock (cattle, swine, poultry). It is listed on the New York Stock Exchange under ticker ZTS.

Why is adjusted EPS different from reported EPS?

Companies report adjusted EPS by excluding one-time items such as M&A expenses and accounting adjustments. For Zoetis, adjusted EPS of $1.53 excludes approximately $45 million in acquisition-related costs. Wall Street typically uses adjusted EPS for performance evaluation.

Why did U.S. revenue decline sharply?

Pet owners reduced veterinary clinic visits due to economic constraints and cut purchases of premium medications. Additionally, increased competition in skin allergy and parasite prevention products eroded demand for Zoetis' core offerings.

What changed in full-year guidance?

Zoetis revised 2026 revenue guidance to $9.68B–$9.96B with organic growth of 2–5% and adjusted EPS guidance to $6.85–$7.00. Specific comparison to prior guidance was not detailed in the filing.

Related Assets

Gurus Holding This Stock

David RolfeZTS 3.4%

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National Pension ServiceZTS 0.2%

Cliff AsnessZTS 0.1%

David E. ShawZTS 0.1%

Jim Simons (Estate)ZTS 0.1%

Justin Jeon

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