Zoetis Stock Earnings Reports

Zoetis reported Q3 2025 revenue of $2.4B, +1% reported and +4% organic operationally, with adjusted net income of $754M (+5% reported, +9% organic operationally). Management narrowed full-year organic operational revenue guidance to 5.5%–6.5% and organic operational adjusted net income growth to 5.5%–7%, with reported revenue guidance of $9.4B–$9.475B and adjusted net income guidance of $2.8B–$2.84B. Companion Animal growth moderated (Companion Animal +2% operationally; Simparica franchise +7% operationally; Key Dermatology +3% operationally) driven by a tough prior-year comp, softer therapeutic clinic visits in the U.S., and competitive launch promotional activity. The OA pain monoclonal antibody franchise declined (Librela down materially, global Librela -15% operationally) due in part to misperceptions amplified on social media; management is executing a multi-pronged remediation (education, specialist engagement, Phase IV studies) and says Librela trends are beginning to stabilize. Zoetis announced approvals/positive opinions for new long‑acting OA therapies (Lenivia in Canada, positive CVMP opinion for EU; Portela approved in EU for feline OA) with launches expected in H1 2026 and continued investment in biologics manufacturing. Livestock was a bright spot, growing 10% operationally driven by vaccines, Procerta uptake, improved supply (e.g., ceftiofur) and broad-based strength across species; management expects Livestock momentum to continue. Margins improved (adjusted gross margin 71.6%), adjusted operating expenses were well controlled, and adjusted diluted EPS showed solid growth. Management reiterated confidence in the long-term pipeline and innovation cadence (expecting a major market approval each year), but emphasized near-term headwinds from clinic visit softness and competitive promotions affecting Companion Animal results.