Animal health firm Zoetis Inc. (NYSE:ZTS) on Thursday reported a fourth-quarter 2025 adjusted earnings per share of $1.48. The company beat the consensus of $1.40.
The company reported sales of $2.387 billion, up 3% year over year, almost in line with the consensus of $2.36 billion. On an organic operational basis, revenue increased 4%.
Adjusted net income was $648 million, an increase of 3% on a reported basis and 4% on an organic operational basis.
Adjusted net income for the fourth quarter of 2025 excludes the net impact of $45 million for purchase accounting adjustments, acquisition and divestiture-related costs, and certain significant items.
Segment Breakdown
Revenue in the U.S. segment was $1.2 billion, a decrease of 2% on a reported basis and flat on an organic operational basis.
Sales of companion animal products decreased 1%.
A decline in the company’s monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela for dogs, and Solensia for cats, was partially offset by growth in the company’s parasiticides portfolio and key dermatology franchise.
Sales of livestock products declined 6% on a reported basis due to the divestiture of the medicated feed additive (MFA) product portfolio and related assets.
On an organic operational basis, sales of livestock products increased 3%, driven primarily by strong growth in cattle and poultry biologics and the timing of product supply.
“Zoetis delivered solid results in 2025, demonstrating the strength and resilience of our portfolio across species, geographies, and channels. Leadership across key brands and categories drove continued growth, even as we navigated a dynamic operating environment,” said Kristin Peck, CEO of Zoetis.
“Our disciplined execution positions us well as we move into 2026 and lay the groundwork for the next phase of our innovation cycle, supporting sustainable growth and long-term value creation.”
Guidance
Zoetis forecasts fiscal 2026 adjusted earnings of $7.00-$7.10 per share compared to the consensus of $6.80.
The company forecasts sales between $9.83 billion-$10.03 billion versus the consensus of $9.91 billion.
Analyst View On Outlook
William Blair notes that despite increasing competition, Zoetis provided 2026 EPS guidance above the Street, which could provide some confidence that the fundamentals are troughing soon.
On the negative side, analyst Brandon Vazquez highlights that key segments like dermatology, parasiticides, and OA pain (mostly Librela) saw another step down in growth.
While this was largely expected, William Blair says it creates questions about the pathway for improving growth/EPS in 2026, especially since some key competitive launches are still expected in the coming quarters..
ZTS Price Action: Zoetis shares were up 1.30% at $130.34 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
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