Zoetis exhibits resilient profitability with gross margins expanding to 72.7% in 2026Q2 and a dramatic deleveraging that reduced debt-to-equity to 0.06, yet revenue growth has stagnated at 0.3% year-over-year.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has decelerated to 0.3% in 2026Q2, yet gross margin expanded to 72.7% and operating margin remains strong at 38.0%, indicating pricing power despite volume softness.
Zoetis is the largest global animal health company, with a strong commitment to advancing care for animals and a wide moat in the industry.
The company has shown accelerating growth and strong franchise momentum, as highlighted in previous bullish theses.
Zoetis is expanding its osteoarthritis monoclonal antibody portfolio, which is expected to drive future growth.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 5, 2026 | $1.75+15.9% vs $1.51 | $2.4B+3.8% vs $2.3B |
Q3 2026 Aug 6, 2026 | $1.87+1.1% vs $1.85 | $2.5B-1.3% vs $2.5B |
Q2 2026 May 7, 2026 | $1.53-4.4% vs $1.60 | $2.3B-1.7% vs $2.3B |
Q1 2026 Feb 12, 2026 | $1.48+5.7% vs $1.40 | $2.4B+1.1% vs $2.4B |
Zoetis Inc., formerly Pfizer's veterinary arm, is a global leader in animal pharmaceuticals and diagnostics. ZTS generates most revenue from companion animal products, with approximately 30% from livestock healthcare solutions. We review why the stock has done so poorly and tell you why we went long.
Zoetis Inc. ( ZTS ) Q3 2026 Earnings Call November 5, 2026 8:30 AM EST Company Participants Mathieu Aussermeier Kristin Peck - CEO & Director James Saccaro - Executive VP, CFO & COO Conference Call Participants Christopher Schott - JPMorgan Chase & Co, Research Division David Westenberg - Piper Sandler & Co., Research Division Jonathan Block - Stifel, Nicolaus & Company, Incorporated, Research Division Brandon Vazquez - William Blair & Company L.L.C., Research Division Erin Wilson Wright - Morgan Stanley, Research Division Matthew Dellatorre - Goldman Sachs Group, Inc., Research Division Navann Ty Dietschi - BNP Paribas, Research Division Christopher LoBianco - TD Cowen, Research Division Andrea Zayco Narvaez Alfonso - UBS Investment Bank, Research Division Steven Dechert - KeyBanc Capital Markets Inc., Research Division Presentation Operator Welcome to the third quarter 2026 financial results conference call and webcast for Zoetis.
Zoetis's organic operational revenue fell 1% in the third quarter. Global livestock revenue rose 7% to $797 million.
Zoetis beats third-quarter earnings and revenue estimates. Livestock sales growth partially offsets weakness in companion animal products.
Benchmark ZTS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Zoetis Inc. (ZTS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $79.40 | $33.29B | 13.15 | 2.28% | 26.15% | 76.4% | 2.52% | |
| $25.74 | $12.86B | -88.70 | 6.22% | -2.86% | -2.24% | — | |
| $36.43 | $1.43B | 39.43 | 3.63% | 5.08% | 5.53% | — | |
| $32.96 | $1.34B | 13.14 | 17.12% | 6.67% | 27.44% | 1.44% | |
| $676.04 | $53.33B | 45.20 | 10.42% | 25.36% | 71.18% | — | |
| $11.76 | $2.56B | -45.71 | -2.71% | -6.35% | -2.68% | — |
Zoetis Inc. (ZTS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Zoetis Inc. (ZTS) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 6, 2026·SEC
Aug 6, 2026·SEC
May 22, 2026·SEC
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Zoetis Inc. (ZTS) stock FAQ — growth, dividends, profitability & financials explained
Zoetis Inc. (ZTS) reported $9.47B in revenue in fiscal year 2025, which is also its trailing twelve months. That is 164% more than the $3.58B of fiscal year 2010.
Zoetis Inc. (ZTS) grew revenue by 1.2% over the trailing twelve months, compared with the twelve months before.
Yes. Zoetis Inc. (ZTS) earned $2.49B in net income over the trailing twelve months (a 26.1% net margin).
Yes. Zoetis Inc. (ZTS) pays a dividend that yields 2.52% at the current price, a moderate yield.
Zoetis Inc. (ZTS) had a return on equity (ROE) of 76.4% over the trailing twelve months. That is well above the market's typical 10-15%.
Zoetis Inc. (ZTS) generated $2.28B in free cash flow over the trailing twelve months.
