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. The company's strong cash generation (cumulative O...
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 9/24/2026, 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) |
|---|---|---|
Q3 2026Latest 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 |
Q4 2025 Nov 4, 2025 | $1.70+4.9% vs $1.62 | $2.4B-0.4% vs $2.4B |
Zoetis is rated a buy, as I see current headwinds as temporary and the stock undervalued based on my DCF valuation. ZTS faces near-term pressure from weaker U.S. companion animal demand, increased competition, and margin compression due to promotions and rebates. Long-term growth is supported by structural pet humanization trends, international expansion, a robust R&D pipeline, and a growing diagnostics segment.
Zoetis Inc. (ZTS) Presents at Morgan Stanley 24th Annual Global Healthcare Conference Transcript
Corient Private Wealth LP lowered its stake in Zoetis Inc. (NYSE: ZTS) by 8.9% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 487,990 shares of the company's stock after selling 47,682 shares during the period. Corient Private
Zoetis (NYSE: ZTS - Get Free Report) and Urogen Pharma (NASDAQ: URGN - Get Free Report) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation. Profitability This table compares Zoetis and Urogen Pharma's net
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 |
|---|---|---|---|---|---|---|---|
| $71.63 | $30.03B | 11.90 | 2.28% | 28.23% | 65.99% | 2.8% | |
| $22.58 | $11.28B | -48.04 | 6.22% | -3.96% | -3.02% | — | |
| $24.63 | $968.82M | 153.94 | 3.63% | 1.96% | 2.13% | — | |
| $34.10 | $1.38B | 28.66 | 27.37% | 6.57% | 28.67% | — | |
| $522.02 | $41.18B | 39.91 | 10.42% | 25.03% | 71.96% | — | |
| $13.57 | $2.95B | -339.25 | -2.71% | -0.91% | -0.37% | — |
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 $9.52B in revenue for fiscal year 2025. This represents a 166% increase from $3.58B in 2010.
Zoetis Inc. (ZTS) grew revenue by 2.3% over the past year. Growth has been modest.
Yes, Zoetis Inc. (ZTS) is profitable, generating $2.62B in net income for fiscal year 2025 (28.2% net margin).
Yes, Zoetis Inc. (ZTS) pays a dividend with a yield of 2.80%. This makes it attractive for income-focused investors.
Zoetis Inc. (ZTS) has a return on equity (ROE) of 66.0%. This is excellent, indicating efficient use of shareholder capital.
Zoetis Inc. (ZTS) generated $2.66B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
