Zoetis reported third quarter 2026 results that exceeded expectations on both the top and bottom lines, despite continued headwinds in the U.S. pet market. While reported revenue declined 1% year-over-year to $2.39 billion, adjusted diluted EPS grew 3% to $1.75, prompting management to raise its full-year earnings outlook.
Key Highlights
- U.S. Companion Animal revenue fell 8% to $980 million, yet significantly outperformed the $915.2 million analyst estimate despite dermatology and generic competition.
- International livestock revenue drove segment growth, increasing 9% on an organic operational basis led by cattle and fish product demand.
- The company raised its full-year 2026 adjusted EPS guidance range to $6.25–$6.35, up from the prior range of $6.15–$6.25.
- Research and development investments remained stable at $174 million for the quarter, supporting several upcoming product approvals moved forward into Q4 2026.