Key Takeaways
- Zoetis reported first-quarter 2026 revenue of $2.3 billion, up 3% year over year.
- Adjusted diluted EPS reached $1.53 for the quarter.
- U.S. companion animal sales declined due to softer veterinary visits, pricing pressure, and increased competition.
- International revenue increased 17% on a reported basis, led by companion animal parasiticides, diagnostics, and livestock products.
- Zoetis revised full-year 2026 revenue guidance to $9.68 billion to $9.96 billion.
- The company highlighted a pipeline containing more than 12 potential blockbuster products across multiple therapeutic areas.
- Zoetis also reaffirmed its focus on livestock innovation through its planned acquisition of Neogen’s animal genomics business.
Zoetis reported first-quarter 2026 revenue of $2.3 billion, representing a 3% increase compared to the prior year, while revising its full-year guidance to reflect changing market conditions and increased competition in companion animal categories.
The company reported net income of $601 million, or $1.42 per diluted share, while adjusted net income reached $646 million, or $1.53 per diluted share. Organic operational revenue growth for the quarter was flat, with adjusted net income growing 1% on an organic operational basis.
Zoetis CEO Kristin Peck said the quarter unfolded in a more challenging operating environment than anticipated, citing increased price sensitivity among pet owners, fewer veterinary visits, and intensified competition in dermatology and parasiticide categories.
In the U.S., revenue declined 8% to approximately $1.1 billion, driven primarily by weaker companion animal product sales. The company said key brands including Simparica Trio®, Convenia®, Cerenia®, and Librela® faced competitive and market pressures during the quarter. Livestock sales in the U.S. increased 7%, supported by demand across cattle, poultry, and swine segments.
Internationally, revenue increased 17% on a reported basis and 10% operationally, reaching approximately $1.1 billion. Companion animal growth was supported by parasiticides, diagnostics, vaccines, and pricing actions, while livestock products experienced broad-based gains across cattle, poultry, swine, and fish markets.
Zoetis also highlighted several recent product approvals and pipeline developments, including a new formulation of Convenia in Canada, approval of Apoquel® Chewable in Thailand, and fish vaccine approvals in Japan. The company said its development pipeline now includes more than 12 potential blockbuster candidates spanning chronic kidney disease, oncology, cardiology, anxiety, and obesity.
The company additionally emphasized its planned acquisition of Neogen Corporation’s animal genomics business, which it expects to complete during the second half of 2026 as part of its broader livestock innovation strategy.
For full-year 2026, Zoetis revised revenue guidance to a range of $9.68 billion to $9.96 billion and adjusted diluted EPS guidance to $6.85 to $7.00.
Information sourced from the company’s earnings release.
