Zoetis Q2 revenue misses estimates, cuts 2026 outlook

Zoetis

06/08/2026 12:17

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

Outlook
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%

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

Company press release: ID:nBw1xR15Ca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$2.47 bln
$2.50 bln (12 Analysts)
Q2 EPS
 
$1.65
 

Analyst Coverage
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

Reuters Recommended Reads
Aug 5 - Elanco Animal Health beats Q2 revenue estimates, raises FY  guidance
Aug 5 - Central Garden & Pet Q3 sales miss estimates on exit of pet distribution; lifts FY forecast
Aug 5 - Trupanion Q2 revenue slightly beats estimates, helped by subscription business strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)