Zoetis (ZTS)
NYSE:ZTS
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Zoetis
(NYSE:ZTS)
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Rating:64Neutral
Price Target:
$86.00
▼(-29.73% Downside)
Action:Reiterated
Date:05/22/26
The score is supported primarily by strong profitability and solid free-cash-flow generation, plus reaffirmed positive full-year guidance. Offsetting these positives are very weak technicals (price well below key moving averages with negative momentum) and mixed near-term fundamentals from the earnings call, particularly U.S. companion-animal weakness and competitive pressures.
Positive Factors
High and expanding profitability
Zoetis’s sustained high gross (~71%) and net (~28%) margins, alongside multi-year revenue growth to $9.5B TTM, indicate durable product-level economics and pricing power. Strong margins support reinvestment in R&D, commercial expansion and shareholder returns, bolstering long-term competitiveness and return on invested capital.
Negative Factors
U.S. companion-animal demand weakness
Pronounced U.S. companion-animal declines (-11%) reflect lower clinic traffic and rising pet-owner price sensitivity. Given the large share of revenue from companion care, sustained softness or slower clinic visits could materially pressure topline growth and limit pricing levers over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High and expanding profitability
Zoetis’s sustained high gross (~71%) and net (~28%) margins, alongside multi-year revenue growth to $9.5B TTM, indicate durable product-level economics and pricing power. Strong margins support reinvestment in R&D, commercial expansion and shareholder returns, bolstering long-term competitiveness and return on invested capital.
Read all positive factors
Zoetis Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how revenue is distributed regionally, helping investors see whether growth is broad‑based or concentrated in a few markets, how companion‑animal versus livestock demand varies by region, and where geopolitical or trade issues could create vulnerability.
Shows how revenue is distributed regionally, helping investors see whether growth is broad‑based or concentrated in a few markets, how companion‑animal versus livestock demand varies by region, and where geopolitical or trade issues could create vulnerability.
Data provided by:
The Fly
The FlyZoetis (ZTS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.09B
Dividend Yield1.69%
Average Volume (3M)7.22M
Price to Earnings (P/E)20.8
Beta (1Y)0.40
Revenue Growth2.40%
EPS Growth8.35%
CountryUS
Employees13,800
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)6.04
Shares Outstanding419,228,120
10 Day Avg. Volume10,324,848
30 Day Avg. Volume7,222,401
Financial Highlights & Ratios
PEG Ratio2.04
Price to Book (P/B)16.75
Price to Sales (P/S)5.89
P/FCF Ratio24.44
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue4.35
Enterprise Value/Gross Profit6.15
Enterprise Value/Ebitda10.24
Forecast
1Y Price Target
$124.77Price Target Upside1.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)6.93
Revenue Forecast (FY)$9.77B
Zoetis Business Overview & Revenue Model
Company Description
Zoetis Inc. discovers, develops, manufactures, and commercializes animal health medicines, vaccines, and diagnostic products in the United States and internationally. It commercializes products primarily across species, including livestock, such a...
How the Company Makes Money
Zoetis primarily makes money by selling animal health products—most notably pharmaceuticals (including anti-infectives and pain/anti-inflammatory medicines), vaccines, parasiticides, and dermatology and other specialty therapeutics—across two main...
Zoetis Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
Mixed quarter: strong execution in livestock, international markets, diagnostics, margin improvement ex-FX, EPS and adjusted net income growth, and a solid pipeline/M&A strategy contrast with pronounced weakness in U.S. companion animal (dermatology, parasiticides and OA pain), channel destocking, generic incursions on select products, fiscal alignment timing and FX headwinds. Management has taken decisive cost and commercial actions and provided positive full-year guidance, but near-term risks and competitive intensity leave the recovery path uncertain.Positive Updates
Solid Livestock Performance
Global livestock revenue $720M, up 12% year-over-year with broad-based growth across cattle, swine, poultry and fish; U.S. livestock grew 7% ($225M) driven by improved supply, spring promotions and vaccine adoption — described as a durable source of growth.
Negative Updates
Flat Organic Revenue and Volume Decline in Q1
Global revenue $2.3B, reported growth +3% but organic operational revenue flat (0%); price contributed +2% while volume declined -2%. Company noted that excluding a ~$100M fiscal alignment timing shift from Q4 to Q1, global organic sales would have declined ~5% in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Livestock Performance
Global livestock revenue $720M, up 12% year-over-year with broad-based growth across cattle, swine, poultry and fish; U.S. livestock grew 7% ($225M) driven by improved supply, spring promotions and vaccine adoption — described as a durable source of growth.
Read all positive updates
Company Guidance
Zoetis updated its full‑year 2026 outlook to organic operational revenue growth of 2%–5% (revenue $9.68B–$9.96B, foreign exchange rates as of late April), adjusted net income of $2.87B–$2.95B (growth 2%–6%), reported diluted EPS $6.35–$6.50 and adjusted diluted EPS $6.85–$7.00; management also expects full‑year adjusted gross margin to be roughly 71.5%, is using an aggregate price assumption of about 1%–2%, anticipates livestock growth in the mid‑ to high‑single digits and key companion‑animal franchises in the low‑ to mid‑single digits, and said its fiscal‑year alignment had been expected to provide ~200–250 basis points of revenue tailwind that Q1 market softness more than offset, leading to a widened guidance range to reflect ongoing macro and competitive uncertainty.Zoetis Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
64
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.51B | 9.47B | 9.26B | 8.54B | 8.08B | 7.78B |
| Gross Profit | 6.73B | 6.67B | 6.40B | 5.83B | 5.48B | 5.31B |
| EBITDA | 4.04B | 4.07B | 3.87B | 3.69B | 3.36B | 3.17B |
| Net Income | 2.64B | 2.67B | 2.49B | 2.34B | 2.11B | 2.04B |
Balance Sheet | ||||||
| Total Assets | 15.15B | 15.47B | 14.24B | 14.29B | 14.93B | 13.90B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 2.31B | 1.99B | 2.04B | 3.58B | 3.48B |
| Total Debt | 9.24B | 9.49B | 6.74B | 6.75B | 8.09B | 6.74B |
| Total Liabilities | 11.92B | 12.14B | 9.47B | 9.29B | 10.52B | 9.36B |
| Stockholders Equity | 3.23B | 3.33B | 4.77B | 5.00B | 4.41B | 4.54B |
Cash Flow | ||||||
| Free Cash Flow | 2.14B | 2.28B | 2.30B | 1.62B | 1.33B | 1.74B |
| Operating Cash Flow | 2.72B | 2.90B | 2.95B | 2.35B | 1.91B | 2.21B |
| Investing Cash Flow | -660.00M | -748.00M | -315.00M | -777.00M | -883.00M | -458.00M |
| Financing Cash Flow | -2.03B | -1.87B | -2.66B | -3.11B | -904.00M | -1.86B |
Zoetis Technical Analysis
Negative
122.38
Price Trends
107.72
Negative
116.31
Negative
126.42
Negative
Market Momentum
-10.03
Positive
29.00
Positive
72.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZTS, the sentiment is Negative. The current price of 122.38 is above the 20-day moving average (MA) of 92.97, above the 50-day MA of 107.72, and below the 200-day MA of 126.42, indicating a bearish trend. The MACD of -10.03 indicates Positive momentum. The RSI at 29.00 is Positive, neither overbought nor oversold. The STOCH value of 72.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZTS.
Zoetis Risk Analysis
Zoetis disclosed 51 risk factors in its most recent earnings report. Zoetis reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zoetis Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $11.44B | 23.89 | 11.76% | 0.64% | -1.06% | -26.67% | |
64 Neutral | $34.09B | 20.76 | 62.41% | 1.69% | 2.40% | 8.35% | |
61 Neutral | $19.39B | 22.12 | -1.97% | 3.99% | 2.14% | 91.93% | |
60 Neutral | $10.85B | 52.24 | -3.64% | ― | 10.53% | -164.58% | |
58 Neutral | $1.35B | 23.34 | 29.49% | 1.28% | 25.98% | 199.43% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ZTS
Zoetis
81.32
-78.77
-49.20%
RDY
Dr Reddy's Laboratories
13.60
-0.71
-4.95%
VTRS
Viatris
16.65
8.67
108.78%
PAHC
Phibro Animal Health
33.26
10.33
45.02%
ELAN
Elanco Animal Health
21.73
9.07
71.64%
Zoetis Corporate Events
Executive/Board ChangesShareholder Meetings
Zoetis Announces Board Changes and Governance Vote Results
Positive
May 22, 2026
Zoetis Inc. reported that, effective May 20, 2026, long-serving director Louise M. Parent retired from its board in line with the company’s director retirement policy, ahead of the 2026 Annual Meeting of Shareholders held the same day. At th...
Dividends
Zoetis Declares Third-Quarter 2026 Cash Dividend
Positive
May 20, 2026
On May 20, 2026, Zoetis Inc.’s board declared a third-quarter 2026 dividend of $0.53 per share. The cash dividend is scheduled to be paid on September 1, 2026, to shareholders of record as of the close of business on July 20, 2026.The decisi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.