Upside case
Bull case
$158+42.2%
ZTS would need investors to value it at roughly 23x earnings — about 7x more generous than today's 16x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Zoetis Inc. (ZTS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
30
analysts
15 bullish · 0 bearish · 30 covering ZTS
Strong Buy
1
Buy
14
Hold
15
Sell
0
Strong Sell
0
Consensus Target
$143
+28.6% vs today
Scenario Range
$90 – $158
Model bear to bull value window
Coverage
30
Published analyst ratings
Valuation Context
15.8x
Forward P/E · Market cap $46.9B
ZTS price targets
Three scenarios for where ZTS stock could go
Current
~$111
Confidence
77 / 100
Updated
May 1, 2026
Where we are now
Current · $111
Bear
$90
Base
$136
Bull
$158
Market caseClosest to today
Base case
$136+22.2%
At 19x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$90-18.7%
If investor confidence fades or macro conditions deteriorate, a 3x multiple contraction could push ZTS down roughly 19% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Zoetis Inc.
ZTS · NYSEHealthcareDrug Manufacturers - Specialty & GenericDecember year-end
Zoetis is the world's leading animal health company, developing and selling medicines, vaccines, and diagnostic products for both livestock and companion animals. It generates revenue primarily from pharmaceutical products (~70% of sales) and vaccines (~20%), with the remainder from diagnostics and other offerings. The company's moat stems from its extensive R&D pipeline, global manufacturing scale, and trusted brand relationships with veterinarians and livestock producers.
Market Cap
$46.9B
Revenue TTM
$9.5B
Net Income TTM
$2.7B
Net Margin
28.2%
ZTS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+3.9%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$1.48/$1.41
Revenue
$2.2B/$2.2B
Q3 2025
EPS
$1.76/$1.62
Revenue
$2.5B/$2.4B
Q4 2025
EPS
$1.70/$1.62
Revenue
$2.4B/$2.4B
Q1 2026
EPS
$1.48/$1.40
Revenue
$2.4B/$2.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.48/$1.41 | +5.0% | $2.2B/$2.2B | +1.4% |
| Q3 2025 | $1.76/$1.62 | +8.6% | $2.5B/$2.4B | +2.1% |
| Q4 2025 | $1.70/$1.62 | +4.9% | $2.4B/$2.4B | -0.4% |
| Q1 2026 | $1.48/$1.40 | +5.7% | $2.4B/$2.4B | +1.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$9.9B
+4.4% YoY
FY2
$10.3B
+4.4% YoY
EPS Outlook
FY1
$6.87
+12.8% YoY
FY2
$7.35
+7.0% YoY
Trailing FCF (TTM)$2.3B
FCF Margin: 24.1%
Next Earnings
May 7, 2026
Expected EPS
$1.62
Expected Revenue
$2.3B
ZTS beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
ZTS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $9.3B
Product Mix
Latest annual revenue by segment or product family
Horses
67.8%
+4.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
United States Segment
54.5%
+0.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Horses is the largest disclosed segment at 67.8% of FY 2025 revenue, up 4.8% YoY.
United States Segment is the largest reported region at 54.5%, up 0.5% YoY.
ZTS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $164 — implies +43.8% from today's price.
Upside to Fair Value
43.8%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ZTS
18.5x
vs
S&P 500
25.2x
27% discount
vs Healthcare Trailing P/E
ZTS
18.5x
vs
Healthcare
22.1x
17% discount
vs ZTS 5Y Avg P/E
Today
18.5x
vs
5Y Average
35.9x
49% discount
Forward PE
15.8x
S&P 500
19.1x
-17%
Healthcare
19.0x
-17%
5Y Avg
—
—
Trailing PE
18.5x
S&P 500
25.2x
-27%
Healthcare
22.1x
-17%
5Y Avg
35.9x
-49%
PEG Ratio
1.54x
S&P 500
1.75x
-12%
Healthcare
1.52x
+1%
5Y Avg
—
—
EV/EBITDA
13.3x
S&P 500
15.3x
-13%
Healthcare
14.1x
-6%
5Y Avg
24.2x
-45%
Price/FCF
20.6x
S&P 500
21.3x
-4%
Healthcare
18.7x
+10%
5Y Avg
46.4x
-56%
Price/Sales
5.0x
S&P 500
3.1x
+58%
Healthcare
2.8x
+74%
5Y Avg
9.6x
-48%
Dividend Yield
1.80%
S&P 500
1.88%
-4%
Healthcare
1.40%
+29%
5Y Avg
0.94%
+91%
| Metric | ZTS | S&P 500 | Healthcare | 5Y Avg ZTS |
|---|---|---|---|---|
| Forward PE | 15.8x | 19.1x-17% | 19.0x-17% | — |
| Trailing PE | 18.5x | 25.2x-27% | 22.1x-17% | 35.9x-49% |
| PEG Ratio | 1.54x | 1.75x-12% | 1.52x | — |
| EV/EBITDA | 13.3x | 15.3x-13% | 14.1x | 24.2x-45% |
| Price/FCF | 20.6x | 21.3x | 18.7x+10% | 46.4x-56% |
| Price/Sales | 5.0x | 3.1x+58% | 2.8x+74% | 9.6x-48% |
| Dividend Yield | 1.80% | 1.88% | 1.40% | 0.94% |
ZTS trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolZTS Financial Health
Verdict
Exceptional
ZTS generates $2.3B in free cash flow at a 24.1% margin — 26.9% ROIC signals a durable competitive advantage · returns 8.7% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$9.5B
Revenue Growth
TTM vs prior year
+2.3%
Gross Margin
Gross profit as a share of revenue
70.5%
Operating Margin
Operating income divided by revenue
38.0%
Net Margin
Net income divided by revenue
28.2%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$6.09
Free Cash Flow (TTM)
Cash generation after capex
$2.3B
FCF Margin
FCF as share of revenue — the primary cash quality signal
24.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
26.9%
ROA
Return on assets, trailing twelve months
18.1%
Cash & Equivalents
Liquid assets on the balance sheet
$2.3B
Net Debt
Total debt minus cash
$7.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.1× FCF
~3.1 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
58.2%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
8.7%
Dividend
1.8%
Buyback
6.9%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$3.2B
Dividend / Share
Annualized trailing dividend per share
$2.00
Payout Ratio
Share of earnings distributed as dividends
33.3%
Shares Outstanding
Declining as buybacks retire shares
422M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageZTS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Intensifying Competition
Zoetis faces growing competition in its companion animal franchises, especially in parasiticide and dermatology markets. Market share erosion and pricing pressure threaten revenue growth and margin expansion.
High Risk
Product Approval Delays
Key products such as Librela (dogs) and Solensia (cats) have experienced delayed FDA approval in the U.S., slowing market adoption and growth potential. The delay reduces expected sales velocity and may erode competitive advantage.
Medium
Supply Chain Disruptions
Ongoing uncertainty in global supply chains can increase production costs and limit product availability, potentially impacting revenue growth. Disruptions may also affect the timely launch of new products.
Medium
Divestiture Revenue Hit
The strategic divestiture of the Medicated Feed Additive portfolio has led to a short‑term revenue decline and reduced livestock sales. The loss of this product line may affect overall sales mix and profitability.
Medium
Debt vs Cash Position
Zoetis’ liabilities exceed its cash and near‑term receivables, creating a leverage risk. While the market cap suggests limited immediate threat, high debt levels could constrain future financing flexibility.
Medium
China Market Headwinds
Economic slowdown, regulatory changes, and weaker livestock demand in China have dampened revenue growth from the region. The company’s exposure to this market could disproportionately affect overall performance.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ZTS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Dominant Market Position & Growth
Zoetis is the leading player in the animal health sector, benefiting from secular trends such as pet humanization and rising pet‑care spending. The company has consistently delivered strong revenue growth, margin expansion, and earnings‑per‑share growth, underscoring its market leadership.
Robust Financial Health
Zoetis boasts a net margin of over 28% and strong returns on assets, equity, and invested capital. It maintains solid liquidity, low leverage, and generates consistent free cash flow, while institutional investors hold a significant portion of the stock.
Innovative Product Pipeline
The company’s R&D pipeline includes successful monoclonal antibody products for osteoarthritis pain in companion animals, such as Librela and Solensia. Zoetis is also targeting large unmet needs in chronic kidney disease and oncology, which could unlock significant new markets.
Resilient Business Model
The animal health industry is considered resilient, with consistent demand and limited generic competition. Zoetis’s strength in international livestock markets helps offset potential slowdowns in consumer spending in other regions.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ZTS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$111.22
52W Range Position
0%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$110.94
+0.3% from the low
52-Week High
$172.23
-35.4% from the high
1 Month
-5.95%
3 Month
-12.71%
YTD
-11.7%
1 Year
-25.8%
3Y CAGR
-15.6%
5Y CAGR
-7.9%
10Y CAGR
+8.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ZTS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
15.8x
vs 25.4x median
-38% below peer median
Revenue Growth
+4.4%
vs +6.0% median
-27% below peer median
Net Margin
28.2%
vs 1.3% median
+2131% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ZTS ZTS Zoetis Inc. | $46.9B | 15.8x | +4.4% | 28.2% | Hold | +28.6% |
ELA ELAN Elanco Animal Health Incorporated | $13.1B | 25.4x | +5.6% | -4.9% | Buy | +6.6% |
PCR PCRX Pacira BioSciences, Inc. | $932M | 8.6x | +4.8% | 1.3% | Hold | +24.5% |
PAH PAHC Phibro Animal Health Corporation | $2.4B | 19.3x | +17.2% | 6.3% | Buy | -16.4% |
IDX IDXX IDEXX Laboratories, Inc. | $46.1B | 39.9x | +8.1% | 24.6% | Buy | +33.5% |
NEO NEOG Neogen Corporation | $2.0B | 25.7x | +6.0% | -68.5% | Hold | +19.8% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
ZTS Dividend and Capital Return
ZTS returns capital mainly through $3.2B/year in buybacks (6.9% buyback yield), with a modest 1.80% dividend — combining for 8.7% total shareholder yield. The dividend has grown for 13 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
8.7%
Dividend + buyback return per year
Buyback Yield
6.9%
Dividend Yield
1.80%
Payout Ratio
33.3%
How ZTS Splits Its Return
Div 1.80%
Buyback 6.9%
Dividend 1.80%Buybacks 6.9%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.00
Growth Streak
Consecutive years of dividend increases
13Y
3Y Div CAGR
15.4%
5Y Div CAGR
20.1%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$3.2B
Estimated Shares Retired
29M
Approx. Share Reduction
6.9%
Shares Outstanding
Current diluted share count from the screening snapshot
422M
At 6.9%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.06 | — | — | — |
| 2025 | $2.00 | +15.7% | 5.8% | 7.4% |
| 2024 | $1.73 | +15.2% | 2.5% | 3.6% |
| 2023 | $1.50 | +15.4% | 1.2% | 2.0% |
| 2022 | $1.30 | +30.0% | 2.3% | 3.2% |
FAQ
7 questionsZTS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Zoetis Inc. (ZTS) stock a buy or sell in 2026?
Zoetis Inc. (ZTS) is rated Hold by Wall Street analysts as of 2026. Of 30 analysts covering the stock, 15 rate it Buy or Strong Buy, 15 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $143, implying +28.6% from the current price of $111. The bear case scenario is $90 and the bull case is $158.
02What is the ZTS stock price target for 2026?
The Wall Street consensus price target for ZTS is $143 based on 30 analyst estimates. The high-end target is $160 (+43.9% from today), and the low-end target is $130 (+16.9%). The base case model target is $136.
03Is Zoetis Inc. (ZTS) stock overvalued in 2026?
ZTS trades at 15.8x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Zoetis Inc. (ZTS) stock in 2026?
The primary risks for ZTS in 2026 are: (1) Intensifying Competition — Zoetis faces growing competition in its companion animal franchises, especially in parasiticide and dermatology markets. (2) Product Approval Delays — Key products such as Librela (dogs) and Solensia (cats) have experienced delayed FDA approval in the U. (3) Supply Chain Disruptions — Ongoing uncertainty in global supply chains can increase production costs and limit product availability, potentially impacting revenue growth. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Zoetis Inc.'s revenue and earnings forecast?
Analyst consensus estimates ZTS will report consensus revenue of $9.9B (+4.4% year-over-year) and EPS of $6.87 (+12.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $10.3B in revenue.
06When does Zoetis Inc. (ZTS) report its next earnings?
Zoetis Inc. is expected to report its next earnings on approximately 2026-05-07. Consensus expects EPS of $1.62 and revenue of $2.3B. Over recent quarters, ZTS has beaten EPS estimates 83% of the time.
07How much free cash flow does Zoetis Inc. generate?
Zoetis Inc. (ZTS) generated $2.3B in free cash flow over the trailing twelve months — a free cash flow margin of 24.1%. ZTS returns capital to shareholders through dividends (1.8% yield) and share repurchases ($3.2B TTM).