Zoetis Earnings Miss, Lowers 2026 Outlook

Zoetis Inc. (ZTS) reported earnings on May 7, 2026 (ET) that fell short of analyst expectations. The company lowered its 2026 outlook after management cited weaker U.S. pet care demand and pressure across product lines, increasing near-term uncertainty for investors.

Quarter Results and Outlook

Zoetis said in a press release distributed via Business Wire on May 7, 2026, that first-quarter revenue reached $2.26 billion, a 3% year-over-year increase but flat on an organic basis, below the $2.31 billion consensus. Adjusted earnings per share (EPS) rose 9% to $1.53 from $1.48 a year earlier but missed the $1.61 analysts expected. The company narrowed its full-year 2026 revenue guidance to $9.68 billion–$9.96 billion from a prior range of $9.83 billion–$10.03 billion and adjusted EPS to $6.85–$7.00 from $7.00–$7.10. Management said about $100 million of timing benefited the quarter.

International revenue grew 17% year-over-year to $1.1 billion, with companion-animal sales up 10%, contrasting with declines in the U.S. market.

U.S. Demand Weakness and Product Pressure

The U.S. segment generated $1.1 billion in first-quarter revenue, down 8% year-over-year on both reported and organic bases. U.S. companion-animal sales fell 11%, driven by fewer veterinary visits, extended dosing cycles, and pet owners choosing lower-cost alternatives.

Dermatology products faced sales declines amid new competitors, while executives noted intensified competition in parasiticides and other categories, with rivals relying on aggressive pricing and incentives that eroded market share.

The combination of the guidance cut and the U.S. companion-animal sales slump reduces near-term growth visibility. Investors will likely focus on product-level competitiveness and pricing dynamics as key factors in the company’s recovery.