ZTS
FY2026 Q1 · Calendar Q2 2026
Zoetis Inc.
Zoetis entered FY2026 with momentum from 6% organic growth in FY2025, but Q1 results revealed a sharp deterioration in its largest market. U.S. companion animal sales fell 8% as competitive pressure in dermatology and parasiticides intensified alongside rising price sensitivity among pet owners. International markets (10% organic) and livestock (12%) provided offsets but could not prevent flat overall organic revenue, an EPS miss of 4.4%, and a revenue miss of 1.7%. Management trimmed FY2026 guidance floors from 3%-5% to 2%-5% for revenue and from 3%-6% to 2%-6% for adjusted net income. The stock's 21% abnormal decline on report day, with an additional 9% drift, signals the market is pricing in sustained competitive and demand pressure rather than a transient dip.
EPS surprise-4.4%
Market move-21.5%
