- Second-quarter revenue was $2.5 billion, flat on a reported basis and down 1% on an organic operational basis.
- U.S. companion animal product sales declined 11%, with Zoetis citing softer end-market demand, pet owner price sensitivity and increased competition.
- U.S. livestock product sales increased 23%, while International segment revenue increased 8% on a reported basis.
- Adjusted net income was $781 million, down 1% on a reported basis, while adjusted diluted EPS increased 5% to $1.87.
- Zoetis revised its 2026 revenue guidance to $9.12 billion to $9.32 billion and adjusted diluted EPS guidance to $6.15 to $6.25.
- The company said its pipeline includes more than 12 potential blockbuster candidates across areas including chronic kidney disease, oncology, cardiology, anxiety and obesity.
Zoetis reported flat second-quarter revenue and lowered its full-year 2026 financial outlook as weaker demand in the U.S. companion animal market affected several major product categories.
Revenue totaled $2.5 billion for the second quarter, unchanged from the same period in 2025 on a reported basis and down 1% on an organic operational basis.
Net income was $691 million, down 5%, while diluted earnings per share increased 1% to $1.65. Adjusted net income declined 1% on a reported basis to $781 million, while adjusted diluted EPS increased 5% to $1.87.
U.S. companion animal sales decline
Zoetis reported U.S. segment revenue of $1.3 billion, down 7% on both a reported and organic operational basis.
U.S. companion animal product sales declined 11%. The company attributed the decrease to continued softer end-market demand and said its dermatology franchise and Simparica Trio faced pet owner price sensitivity and increased competitive pressure.
Generic competition affecting Cerenia and Convenia, along with lower Librela sales, also contributed to the decline.
“Second quarter results reflected a more pressured Companion Animal market, as lower clinic visits and pet owner price sensitivity reduced demand across parts of our portfolio and heightened competition in key categories,” Zoetis CEO Kristin Peck said.
U.S. livestock product sales moved in the opposite direction, increasing 23% on both a reported and organic operational basis. Zoetis cited growth in cattle and poultry, including increased poultry vaccine sales associated with disease outbreak activity.
International business posts growth
International segment revenue reached $1.2 billion, increasing 8% on a reported basis and 6% organically.
International companion animal product sales increased 8% on a reported basis and 5% organically. Zoetis said growth was led by its parasiticide portfolio, including Simparica Trio, along with Revolution and Stronghold.
Companion animal diagnostics and the launches of the osteoarthritis pain products Lenivia and Portela also contributed to growth.
International livestock sales increased 8% on a reported basis and 6% organically, driven by cattle and poultry.
Zoetis lowers 2026 guidance
Zoetis revised its full-year outlook based on what it described as the current operating environment.
The company now expects:
- Revenue of $9.12 billion to $9.32 billion, representing organic operational growth of negative 3% to negative 1%.
- Reported net income of $2.33 billion to $2.38 billion.
- Adjusted net income of $2.57 billion to $2.62 billion, representing organic operational growth of negative 9% to negative 5%.
- Reported diluted EPS of $5.55 to $5.65.
- Adjusted diluted EPS of $6.15 to $6.25.
The guidance reflects foreign exchange rates as of July 21, 2026.
Pipeline and diagnostics investments continue
Zoetis said it continues to advance a pipeline containing more than 12 potential blockbuster candidates in areas including chronic kidney disease, oncology, cardiology, anxiety and obesity.
Recent developments include European Commission marketing authorization for Poulvac Procerta HVT-ND and additional approvals and launches for Lenivia and Portela.
The company also highlighted its response to New World screwworm. Dectomax-CA1 received FDA conditional approval for prevention and treatment of New World screwworm myiasis in beef cattle, while Dectomax-CA1 and Dectomax received emergency use authorization covering additional animal populations in the U.S.
In diagnostics, Zoetis completed its acquisition of veterinary teleradiology platform VitalRADS in July. The acquisition expands the company’s Global Diagnostics business into veterinary imaging interpretation through access to board-certified veterinary specialists.
Zoetis also expanded the capabilities of its Vetscan Opticell point-of-care hematology analyzer to include cellular hemoglobin mean.
View Zoetis’ full second-quarter 2026 results and investor materials
Information sourced from Zoetis’ second-quarter 2026 earnings release.
Forward-Looking Statements Disclaimer: This article may contain forward-looking statements based on information provided by the company, including statements regarding financial guidance, anticipated growth, product development, regulatory approvals, market opportunities and future business performance. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied. Readers should review the company’s filings with the U.S. Securities and Exchange Commission and other official disclosures for additional information regarding these risks and uncertainties.
