Zoetis Inc. (ZTS)

Zoetis reported second-quarter 2026 revenue of $2.5 billion on 6 August, flat on the year, with net income of $691 million 1.

Chief Executive Kristin Peck said the quarter reflected a more pressured companion animal market, with lower clinic visits, pet owner price sensitivity and heightened competition 1.

In the U.S., companion animal sales fell 11 percent while livestock sales rose 23 percent, helped by cattle and poultry 1.

The company lowered its full-year 2026 revenue guidance to $9.120 billion to $9.320 billion, from the $9.83 billion to $10.03 billion Reuters reported in February 15.

Third-quarter results are due on 5 November, when the chief executive and the finance chief host a call 6. A new director, Iris Knobloch, joins the board on 1 December 4.

Zoetis was incorporated in Delaware in July 2012, and before that it was a business unit of Pfizer 2. Kristin Peck, then a senior executive, helped guide it through its public offering in 2013 2.

In 2018 it acquired Abaxis, a maker of veterinary point-of-care diagnostic instruments such as the Vetscan line 2. In 2022 it acquired Jurox in Australia and Basepaws, a pet genetics company 2.

In 2023 it acquired PetMedix and adivo, two research-stage animal biopharmaceutical companies, and in 2025 it acquired Veterinary Pathology Group, a laboratory group in the U.K. and Ireland 2.

Revenue grew from $8,544 million in 2023 to $9,256 million in 2024 and $9,467 million in 2025 2. Net income attributable to the company rose from $2,344 million to $2,486 million and then $2,673 million 2.

Companion animal revenue, from dogs, cats and horses, grew 13 percent in 2024 and 5 percent in 2025 2. Livestock revenue was flat in 2024 and fell 5 percent in 2025 2.

On 31 October 2024 the company completed the divestiture of its medicated feed additive portfolio, which the report says cut revenue growth by about 3 percent in 2025 2.

Price growth of about 4 percent and volume growth from key franchises of about 1 percent lifted 2025 operational revenue, the report says 2.

First-half 2026 revenue was $4,730 million against $4,672 million a year earlier 1.

In February Reuters reported that executives cautioned that the U.S. companion-animal business remained under pressure and competition was intensifying across several major drug categories 5.

What it sells and who buys it

Zoetis describes itself as a global leader in animal health, making medicines, vaccines, diagnostic products and genetic tests across eight core species 2. In 2025 companion animals brought in $6,587 million and livestock $2,764 million of $9,467 million in total revenue 2.

Parasite control and skin care

Parasiticides, medicines against fleas, ticks and worms, were the largest line at $2,341 million in 2025 2. Simparica is a monthly chewable tablet for dogs to control fleas and ticks, and Simparica Trio is a triple combination parasiticide 2.

Dermatology, the skin and allergy line, brought in $1,754 million, led by Apoquel, a tablet for allergic itching in dogs, and Cytopoint, an injection given once every four to eight weeks 2. Simparica and Apoquel together made up about 16 percent and 12 percent of 2025 revenue 2.

Pain care for dogs and cats

Librela is a monthly injection that eases osteoarthritis pain in dogs, approved in the U.S. in 2023, and Solensia does the same for cats 2. Pain and sedation revenue was $840 million in 2025 2.

Three-month versions for dogs and cats launched in Canada and the EU in 2026 and were approved in Great Britain 1. The company also said U.S. sales included lower sales of Librela and generic competition on Cerenia and Convenia 1.

Livestock and diagnostics

In 2025 cattle brought in $1,492 million, swine $466 million, poultry $432 million and fish $286 million 2. In the second quarter poultry gained from vaccine sales tied to disease outbreaks 1.

Animal health diagnostics revenue was $434 million in 2025 2. In July 2026 the company completed the purchase of VitalRADS, a veterinary teleradiology services platform 1.

For cattle, the company has the first parasite control product for the prevention and treatment of New World screwworm, which received conditional FDA approval in 2025 2.

Plants, people and rivals

The largest research and manufacturing sites are owned and in the Kalamazoo, Michigan area, about 1.6 million square feet 2. The company reports about 173 properties and a network of over 90 contract manufacturers 2.

It had about 14,500 employees at the end of 2025 2. Kristin Peck is chief executive and Michael McCallister is board chair 4.

The 10-K names Boehringer Ingelheim Animal Health, Merck Animal Health, Elanco Animal Health and IDEXX Laboratories as primary competitors 2. The largest customer, a U.S. veterinary distributor, was about 16 percent of 2025 revenue 2.

Current problems

The company said pet owners are more price sensitive, clinic visits are lower and competition is heightened in key categories 1. At the end of 2025 it had about $9.2 billion of unsecured debt in senior and convertible notes 2.

The 10-K said sales were pulled into late 2025 ahead of a fiscal year change, lifting International sales by about 2.5 to 3.5 percent that quarter 2.

The umbrella, in words

The main brands are Simparica, Apoquel, Cytopoint, Librela and the Vetscan diagnostics line, each described in the 10-K 2. Exhibit 21.1 lists subsidiaries including Abaxis, Inc., Basepaws Inc, Jurox Pty Ltd, Pharmaq AS and Embrex LLC, and omits some small ones 3.

In August 2024 the board authorized a share repurchase program of up to $6 billion, with $2.4 billion remaining at the end of 2025 2. In December 2025 the company sold 0.250% convertible senior notes and used $248 million of the proceeds to buy about 2.1 million of its own shares 2.

For 2026 the company expects revenue of $9.120 billion to $9.320 billion and adjusted diluted earnings of $6.15 to $6.25 per share, at exchange rates of 21 July 1. It expects reported net income of $2.330 billion to $2.380 billion 1.

Peck said the company is deploying targeted investments, accelerating innovation and pursuing business development 1. The company says it is executing on its commitment to deliver a significant approval in a major market every year for the next several years 1. It cites more than 12 potential blockbuster candidates, a blockbuster meaning annual sales of at least $100 million 1.

Third-quarter results come on 5 November 6. Iris Knobloch joins the board on 1 December, and Peck said the board seeks new ways to connect with pet owners 4.

The 10-K said the company expected to end the one-month reporting lag for its International subsidiaries in 2026, aligning every year end to 31 December 2.