Zoetis posted adjusted EPS of $1.48 versus a $1.40 consensus on revenue of $2.387 billion, representing a 3% reported sales increase and 4% organic growth year-over-year. Adjusted net income reached $648 million, up 3% reported and 4% on an organic operational basis after excluding $45 million in one-time charges.

U.S. segment revenue totaled $1.2 billion, down 2% reported and flat organically, with companion animal sales slipping 1% due to lower monoclonal antibody volumes. Livestock product sales fell 6% reported due to the divestiture of its medicated feed additive portfolio but rose 3% organically, driven by strong cattle and poultry biologics growth and timing of supply.

Zoetis forecast 2026 adjusted EPS of $7.00-7.10 and sales of $9.83 billion-10.03 billion, exceeding consensus estimates of $6.80 EPS and $9.91 billion in revenue. The guidance reflects management’s confidence in underlying portfolio strength despite near-term segment headwinds.

Some analysts viewed the above-consensus guidance as evidence that fundamentals may be troughing soon, while others questioned the pathway to sustainable growth as key dermatology, parasiticides and osteoarthritis pain segments slid, noting pending competitive product launches could further pressure growth.