Zoetis Cuts 2026 EPS Guidance, Q1 Miss Sparks 4% Stock Slide
ZTS•Zoetis reported first-quarter EPS of $0.88 versus consensus of $0.92 and revenue of $1.96 billion against $2.01 billion estimates, sending shares down over 4% intraday. It cut its 2026 adjusted EPS outlook to $4.15–$4.25 from $4.30–$4.40, citing a tougher sales environment.
1. First-Quarter Performance
Zoetis delivered Q1 adjusted EPS of $0.88, missing the $0.92 consensus by $0.04, and reported revenue of $1.96 billion, falling short of the $2.01 billion estimate. The earnings miss reflected weaker demand in international markets and currency headwinds that trimmed top-line growth.
2. Revised 2026 Outlook
The company lowered its full-year adjusted EPS guidance to a range of $4.15–$4.25, down from the prior $4.30–$4.40 forecast, and trimmed sales growth expectations to low- to mid-single digits. Management cited persistent pricing pressure in key regions and slower vaccine rollouts as primary factors necessitating the cut.
3. Market Reaction and Analyst Commentary
Shares slid more than 4% on the day following the announcement, making Zoetis one of the biggest decliners in the S&P 500. Analysts noted that the guidance revision underscores mounting challenges in the animal-health sector and have adjusted their estimates to reflect a protracted recovery period.
