Zoetis Inc. (NYSE: ZTS), the world’s leading animal health company, reported second quarter 2026 revenue of $2.47 billion — flat year over year and marginally below the $2.50 billion consensus. Adjusted diluted EPS of $1.87 beat the $1.85 estimate by two cents, but the company significantly cut its full-year guidance, citing a more pressured US companion animal market.
The US segment declined 7% to $1.30 billion, with US companion animal product sales falling 11% to $1.04 billion. CEO Kristin Peck attributed the decline to lower clinic visits, pet owner price sensitivity, and heightened competition affecting the dermatology franchise (Apoquel/Cytopoint) and Simparica Trio. Generic competition also eroded sales of Cerenia and Convenia, while Librela — the canine osteoarthritis monoclonal antibody — saw lower US sales following earlier side-effect concerns. US livestock products surged 23% to $222 million, driven by cattle and poultry strength.
The international segment grew 8% on a reported basis (6% organic) to $1.17 billion, beating consensus. International companion animal sales rose 8% to $664 million, led by parasiticides, diagnostics, and the launch of Lenivia (canine) and Portela (feline) long-acting osteoarthritis pain therapies. International livestock grew 8% to $509 million.
Zoetis slashed its FY2026 revenue guidance from $9.68–$9.96 billion to $9.12–$9.32 billion, reflecting an organic operational decline of 1–3% versus prior expectations of 2–5% growth. Adjusted EPS guidance was cut from $6.85–$7.00 to $6.15–$6.25. The company also appointed Jay Saccaro as Executive Vice President, CFO and COO in a newly created combined role, effective August 17. Year to date, Zoetis shares have declined approximately 40%.
