Zoetis cuts 2026 revenue guidance to $9.12 bln-$9.32 bln, down from $9.68 bln-$9.96 bln
Company lowers 2026 adjusted diluted EPS outlook to $6.15-$6.25 from $6.85-$7.00
Zoetis expects 2026 organic operational revenue to decline 3% to 1%
Overview
U.S. animal health company's Q2 revenue was flat and missed analyst expectations
Adjusted net income and EPS declined on organic operational basis
Company lowered full-year 2026 guidance due to pressured companion animal market
Result drivers
Companion animal weakness - Co said lower clinic visits, pet owner price sensitivity and increased competition reduced U.S. companion animal sales, especially in dermatology and parasiticides
Livestock growth - U.S. livestock sales rose 23% driven by favorable beef cattle economics and poultry vaccine demand amid disease outbreaks
International expansion - International companion animal and livestock sales grew, helped by new product launches and diagnostics, though some categories faced challenging market conditions
The current average analyst rating on the shares is buy and the breakdown of recommendations is 10 strong buy or buy, 10 hold and no sell or strong sell
The average consensus recommendation for the pharmaceuticals peer group is buy
Wall Street's median 12-month price target for Zoetis Inc is $99.00, about 33.1% above its August 5 closing price of $74.39
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 16 three months ago
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