Zoetis plans cautiously for 2027 as pet owners cut back on vet visits, shares fall

By Sahil Pandey

Nov 5 (Reuters) - Animal health company Zoetis ZTS.N said on Thursday it was planning cautiously for 2027 as rising veterinary costs and intensifying competition weigh on its companion-animal business.

The company's shares were down more than 7% in afternoon trading.

The cautious outlook overshadowed better-than-expected third-quarter results and a higher 2026 adjusted earnings forecast, and signals rising affordability pressures across US pet care, where higher veterinary bills are pushing more owners to purchase pet insurance and delay or decline treatment.

“That cost pressure is making pet owners more value conscious and deliberate when making trade-offs to care for their pets,” CEO Kristin Peck said in a post-earnings call.

US veterinary clinic visits were down 3% in the first nine months of 2026, Peck said. Softer clinic traffic and affordability pressures also weighed on sales of the company’s dermatology treatments.

Zoetis was not assuming any improvement in pet-owner spending trends or competitive conditions next year, even after promotional efforts helped slow market-share losses in its key dermatology franchise, said Chief Financial Officer Jay Saccaro.

Product launches planned for next year were expected to contribute only modestly to revenue in 2027, with a larger benefit expected in later years, Saccaro added.

Zoetis develops medicines, vaccines, diagnostics and other products that help prevent, detect and treat illnesses in pets and livestock.