Zoetis: pet medicine sales dip, livestock grows, revenue range narrowed

What happened

Zoetis reported third-quarter 2026 revenue of $2.391 billion on Thursday 5 November, down 1 percent from a year earlier, and narrowed its full-year revenue range to $9.22 billion to $9.32 billion. ^{[1, 3]}

Net income was $591 million, the company reported, down 18 percent. Chief Executive Kristin Peck said in the release: 'Continued pressure in Companion Animal was partially offset by growth in Livestock and Diagnostics.' ^[1]

Why it matters

Companion animal revenue was $1.565 billion against $1.650 billion a year earlier, while livestock revenue grew to $797 million from $746 million. ^[1]

In the United States, companion animal revenue was down 8 percent. The company's release blames price sensitivity among pet owners, competition in dermatology (skin and itch treatments) and generic copies of older products. ^[1]

The product lines

On the call, the company said its key dermatology products, led by Apoquel and Cytopoint, brought in $396 million worldwide, down 16 percent. In the United States they brought in $266 million, down 13 percent, which the company tied to Apoquel losing share. ^[4]

Outside the United States, key dermatology was $130 million, down 20 percent, with the sharpest pressure in Europe, where the company said new entrants took volume from the Apoquel franchise. ^[4]

The Simparica flea, tick and heartworm franchise brought in $358 million, up 1 percent, the company said on the call. Its osteoarthritis pain medicines brought in $137 million, up 2 percent, with the U.S. part, which includes Librela, at $51 million and down 12 percent. ^[4]

Livestock growth came from cattle, up 6 percent to $439 million, and fish, up 23 percent to $98 million, in the company's tables. ^[1]

The outlook

The new revenue range of $9.220 billion to $9.320 billion replaces August's $9.120 billion to $9.320 billion, per the release. The low end is $100 million higher, by the desk's arithmetic, and the upper end is unchanged. ^[1]

Jay Saccaro, the company's chief financial officer and chief operating officer, said on the call that the company is 'not going to assume a change in competitive dynamic in 2027.' ^[4]

What settles it next

Convenia RTU for Dogs, approved by the Food and Drug Administration in October, is expected to reach veterinarians in the first quarter of 2027. Peck said on the call that approval of Simparica Duo is expected by the end of 2026, and Saccaro said the company will update the financial measures it gives on guidance on the fourth-quarter call. ^{[1, 4]}

A securities class action in New York federal court, amended on Friday 23 October, concerns statements about demand for Librela, Simparica Trio, Apoquel and Cytopoint. The company said the case is at an early stage and it intends to defend it. ^[2]

Who it reaches

Zoetis (ZTS) is the direct subject: the results, the narrowed range and the lawsuit are all in its own filings. ^{[1, 2]}