ZTS

Zoetis is navigating the worst drawdown in its stock history, driven by weakening U.S. vet clinic traffic and heightened competition across key companion animal franchises. Despite aggressive competitor promotions, Zoetis protects industry-leading profitability (35%–37% EBIT margins) using targeted gross-to-net rebates rather than base list-price cuts. Trading at a historic low 12x P/E and a 7%+ FCF yield, Zoetis offers a strong margin of safety compared to its Base Case DCF fair value of $100.06.

Zoetis (ZTS) now trades at just 12x forward earnings, with a nearly 3% dividend yield and gross margins above 70%, after a severe multiyear drawdown. Competition, weaker U.S. companion animal sales, and reduced guidance have pressured ZTS, but its core profitability and market dominance remain intact. Management is aggressively repurchasing shares, capital returns are strong, and the balance sheet remains healthy despite $9B in long-term debt.

PARSIPPANY, N.J.--(BUSINESS WIRE)---- $ZTS #animalhealth--Zoetis Inc. today announced that Simparica Trio has received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) for the treatment of infestations caused by New World screwworm (Cochliomyia hominivorax) larvae (myiasis) in dogs and puppies. Larvae of Cochliomyia hominivorax, commonly called New World screwworm (NWS), feed on living tissues, such as open wounds, of animals including livestock, wildlife and pets, and can inflict da.

The U.S. Food and Drug Administration on Thursday issued an emergency use authorization for Zoetis' flea and ​tick drug to treat New World screwworm (NWS) infestations ‌in dogs and puppies.

Zoetis cuts its 2026 outlook as weaker vet traffic, price sensitivity and competition pressure in Companion Animal, while promotions aim to defend share.

Zoetis Inc. (NYSE:ZTS) reported second-quarter adjusted earnings of $1.87 per share, beating the consensus of $1.86.

Zoetis Inc. (ZTS) Q2 2026 Earnings Call Transcript

ZTS beats Q2 earnings estimates but misses the same for revenues. The company cuts its 2026 revenue and profit outlook.

The headline numbers for Zoetis (ZTS) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Zoetis (ZTS) came out with quarterly earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.84 per share. This compares to earnings of $1.76 per share a year ago.