Zoetis Q3 2026: revenue slips 1% but adjusted EPS of $1.75 beats consensus
Zoetis is a Neutral: revenue shrank 1.0% to $2.39 billion as U.S. companion animal fell 8.0%, yet cost discipline and a smaller share count lifted adjusted EPS to $1.75, above the $1.53 consensus, and management raised full-year adjusted EPS guidance. Read this as a portfolio-offset quarter — livestock and International carrying a pet-care business under competitive pressure — not as a return to growth.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $1.44, down 12.0% from $1.63, dragged by $133 million of certain significant items — including $89 million of impairments on in-process research assets acquired from PetMedix — against just $8 million a year ago. Adjusted EPS of $1.75 rose 3.0% and beat the $1.53 consensus figure provided, though on an organic operational basis it was up only 1.0%. Watch the gap: $0.25 per share of the adjusted number came from items management asks you to strip out.
Revenue of $2.39 billion fell 1.0% from $2.42 billion a year ago, and the decline was the same 1.0% even after stripping out currency and deal effects. The mix is the story: U.S. revenue dropped 6.0% to $1.25 billion on an 8.0% companion animal slide, while International grew 4.0% to $1.12 billion. Livestock was the offset at $797 million, up 7.0%, led by cattle, fish and swine.
Management narrowed full-year revenue to $9.22 billion–$9.32 billion, a midpoint of $9.27 billion, still implying organic operational decline of 2.0% to 1.0%. Adjusted EPS guidance was raised to $6.25–$6.35 from $6.15–$6.25, and adjusted net income to $2.60 billion–$2.64 billion, helped by a lower assumed tax rate of about 20.0% versus 20.5%. What did not improve is the cost line: adjusted cost of sales stays at roughly 29.0% of revenue.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-05
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.