Zoetis cuts full-year profit outlook as price-sensitive pet owners reduce vet visits
07/05/2026 12:45
May 7 (Reuters) - Animal health company Zoetis ZTS.N on Thursday cut its full-year profit forecast and reported first-quarter results below Wall Street estimates, citing weaker U.S. demand for premium products and reduced spending by price-conscious pet owners. Shares of the company fell about 12% in premarket trading. Here are some details: Zoetis said veterinary clinic visits declined and competition intensified in key pet care categories such as dermatology and parasiticides, weighing on its companion-animal business. "The first quarter unfolded in a more challenging operating environment than we anticipated," said Zoetis CEO Kristin Peck. The company lowered its 2026 adjusted earnings per share forecast to $6.85-$7.00 from its prior view of $7.00-$7.10. The revised forecast implies a midpoint below analysts’ average expectation of $7.02, according to data compiled by LSEG. Zoetis also cut its annual revenue forecast to $9.68 billion -$9.96 billion from prior view of $9.83 billion-$10.03 billion, reflecting a more cautious demand environment. The company reported quarterly adjusted profit of $1.53 per share, missing analysts’ estimate of $1.61 per share; revenue of $2.26 billion fell short of expectations of $2.31 billion. U.S. revenue fell 8% to $1.09 billion, with companion-animal sales down 11% due to softer demand, competitive pressure and lower sales of its osteoarthritis treatment Librela. International revenue rose 17% to $1.15 billion, driven by demand for parasiticides, vaccines and diagnostics, along with pricing actions and order timing. Livestock sales grew 15% to $720 million, supported by strength across cattle, poultry and swine markets. (Reporting by Sahil Pandey in Bengaluru; Editing by Joyjeet Das) ((Sahil.Pandey@thomsonreuters.com))