Zoetis Q3 revenue tops analyst estimates

Overview

• Animal health company's Q3 revenue fell 1% yr/yr but beat analyst expectations

• Adjusted diluted EPS for Q3 rose 3% yr/yr

• Company cites companion animal weakness, offset by livestock and diagnostics growth

Outlook

• Zoetis narrows 2026 revenue guidance to $9.22 bln-$9.32 bln

• Company raises 2026 adjusted EPS forecast to $6.25-$6.35

• Zoetis lifts 2026 adjusted net income outlook to $2.6 bln-$2.64 bln

Result Drivers

• COMPANION ANIMAL WEAKNESS - Co said U.S. companion animal revenue fell due to price sensitivity, competition in dermatology, and generics

• LIVESTOCK GROWTH - U.S. livestock revenue rose, driven by strength in cattle, swine and poultry

• INTERNATIONAL MIXED - International companion animal revenue was flat overall, with gains in parasiticides and osteoarthritis pain offset by lower dermatology sales

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy."

• Wall Street's median 12-month price target for Zoetis Inc is $85.00, about 4.7% below its November 4 closing price of $89.20

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Nov 4 - Phibro Animal Health Q1 sales rise on mineral nutrition demand

• Nov 3 - Pfizer Q3 revenue beats estimates on new launches; raises guidance

• Nov 3 - Germany's Bayer Q3 sales rise on growth in pharmaceuticals division, lifts outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)