We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ZTS Q3 Earnings Top Estimates, 2026 Profit Outlook Improves, Stock Up
Read MoreHide Full Article
Key Takeaways
Zoetis reported Q3 adjusted EPS of $1.75, beating the $1.51 consensus estimate.
U.S. companion animal sales fell 8% amid price sensitivity, competition and generic pressure.
Zoetis narrows its 2026 revenue guidance and raises its adjusted earnings outlook
Zoetis, Inc. (ZTS - Free Report) delivered third-quarter 2026 adjusted earnings (excluding one-time items) of $1.75 per share, beating the Zacks Consensus Estimate of $1.51. In the year-ago quarter, the company had delivered adjusted earnings of $1.70 per share.
Total revenues declined 1% year over year to $2.4 billion in the third quarter and marginally beat the Zacks Consensus Estimate of $2.3 billion.
The stock is up 7.5% following the better-than-expected earnings results.
Year to date, shares of Zoetis have plunged 27.5% compared with the industry’s 3.4% decline.
Image Source: Zacks Investment Research
ZTS’ Q3 Results in Detail
Zoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments, the United States and International.
Revenues from the U.S. segment decreased 6% year over year to $1.25 billion in the reported quarter. This metric surpassed the Zacks Consensus Estimate of $1.17 billion.
Sales of companion animal products in the U.S. region declined 8% year over year to $980 million, owing to macroeconomic-driven price sensitivity, competitive pressure in dermatology and generic competition.
Zoetis' dermatology franchise continued to face competitive pressure, although promotional activities helped slow market-share losses. The company's Simparica Trio maintained its leading market position, with about 23% clinic patient share despite declining veterinary visits for flea, tick and heartworm treatments.
Sales of livestock products in the United States increased 5% in the quarter to $266 million. The increase was mainly driven by strength across cattle, swine and poultry, supported by Ceftiofur supply recovery and strong vaccine performance. However, Dectomax destocking partially offset the growth.
Revenues in the International segment rose 4% year over year on a reported and organic operational basis to $1.12 billion, marginally beating the Zacks Consensus Estimate of $1.11 billion.
Ex-U.S. sales of companion animal products increased 1% on a reported basis to $585 million and remained flat on an organic operational basis. Growth was primarily driven by the parasiticides and osteoarthritis pain portfolios, partially offset by lower sales of key dermatology products.
Livestock product sales increased 8% year over year on a reported basis and 9% on an organic operational basis to $531 million. Growth was mainly fueled by strong performance across cattle and fish products.
ZTS’ 2026 Guidance
Zoetis narrowed its 2026 revenue guidance by raising the lower end of its projected range while keeping the upper end unchanged. The company expects revenues in the range of $9.22-$9.32 billion, reflecting expected organic operational growth of negative 2% to 1%, up from its previous forecast of $9.12-$9.32 billion.
Adjusted earnings are expected in the range of $6.25-$6.35 per share in 2026 compared with the previous expectation of $6.15-$6.25 per share.
Meanwhile, the company expects adjusted research and development expenses between $705 million and $715 million compared with its previous expectation of $720-$730 million.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 106.8% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with an average surprise of 184.65%.
Over the past 30 days, loss per share estimates for ImmunityBio remain unchanged at 97 cents for 2026. Over the same period, estimates for 2027 loss per share have improved from 14 cents to 11 cents. IBRX’s shares have skyrocketed 351% year to date.
ImmunityBio’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 13.40%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have climbed 58.4% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 27.21%.
View the Zacks #1 Rank List
Image: Bigstock
ZTS Q3 Earnings Top Estimates, 2026 Profit Outlook Improves, Stock Up
Key Takeaways
Zoetis, Inc. (ZTS - Free Report) delivered third-quarter 2026 adjusted earnings (excluding one-time items) of $1.75 per share, beating the Zacks Consensus Estimate of $1.51. In the year-ago quarter, the company had delivered adjusted earnings of $1.70 per share.
Total revenues declined 1% year over year to $2.4 billion in the third quarter and marginally beat the Zacks Consensus Estimate of $2.3 billion.
The stock is up 7.5% following the better-than-expected earnings results.
Year to date, shares of Zoetis have plunged 27.5% compared with the industry’s 3.4% decline.
Image Source: Zacks Investment Research
ZTS’ Q3 Results in Detail
Zoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments, the United States and International.
Revenues from the U.S. segment decreased 6% year over year to $1.25 billion in the reported quarter. This metric surpassed the Zacks Consensus Estimate of $1.17 billion.
Sales of companion animal products in the U.S. region declined 8% year over year to $980 million, owing to macroeconomic-driven price sensitivity, competitive pressure in dermatology and generic competition.
Zoetis' dermatology franchise continued to face competitive pressure, although promotional activities helped slow market-share losses. The company's Simparica Trio maintained its leading market position, with about 23% clinic patient share despite declining veterinary visits for flea, tick and heartworm treatments.
Sales of livestock products in the United States increased 5% in the quarter to $266 million. The increase was mainly driven by strength across cattle, swine and poultry, supported by Ceftiofur supply recovery and strong vaccine performance. However, Dectomax destocking partially offset the growth.
Revenues in the International segment rose 4% year over year on a reported and organic operational basis to $1.12 billion, marginally beating the Zacks Consensus Estimate of $1.11 billion.
Ex-U.S. sales of companion animal products increased 1% on a reported basis to $585 million and remained flat on an organic operational basis. Growth was primarily driven by the parasiticides and osteoarthritis pain portfolios, partially offset by lower sales of key dermatology products.
Livestock product sales increased 8% year over year on a reported basis and 9% on an organic operational basis to $531 million. Growth was mainly fueled by strong performance across cattle and fish products.
ZTS’ 2026 Guidance
Zoetis narrowed its 2026 revenue guidance by raising the lower end of its projected range while keeping the upper end unchanged. The company expects revenues in the range of $9.22-$9.32 billion, reflecting expected organic operational growth of negative 2% to 1%, up from its previous forecast of $9.12-$9.32 billion.
Adjusted earnings are expected in the range of $6.25-$6.35 per share in 2026 compared with the previous expectation of $6.15-$6.25 per share.
Meanwhile, the company expects adjusted research and development expenses between $705 million and $715 million compared with its previous expectation of $720-$730 million.
Zoetis Inc. Price, Consensus and EPS Surprise
Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote
ZTS’ Zacks Rank & Stocks to Consider
Zoetis currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are TG Therapeutics (TGTX - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and ImmunityBio (IBRX - Free Report) and Amneal Pharmaceuticals (AMRX - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 106.8% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with an average surprise of 184.65%.
Over the past 30 days, loss per share estimates for ImmunityBio remain unchanged at 97 cents for 2026. Over the same period, estimates for 2027 loss per share have improved from 14 cents to 11 cents. IBRX’s shares have skyrocketed 351% year to date.
ImmunityBio’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 13.40%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have climbed 58.4% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 27.21%.