Zoetis Q4 2025 Results Beat Estimates

Zoetis Inc. (ZTS) reported stronger-than-expected fourth-quarter 2025 results and on Feb. 12, 2026 projected revenue and earnings growth for 2026, citing strength in companion-animal and international markets that offset softness in the U.S.

Quarter Results and Guidance

Zoetis said in a press release at 7:00 a.m. ET on Feb. 12, 2026 that fourth-quarter revenue reached $2.4 billion, up 3% year-over-year and 4% on an organic operational basis. Adjusted earnings per share (EPS) were $1.48, exceeding expectations. Operating margin declined to 31.9% from 32.9% a year earlier.

For the full year, revenue totaled $9.5 billion, reflecting 6% organic operational growth, while adjusted EPS rose 10% to $6.41. U.S. sales were $5.1 billion, up 4% organically, and international revenue was $4.3 billion, up 8% organically.

Zoetis projected 2026 revenue between $9.8 billion and $10.0 billion, with adjusted diluted EPS of $7.00 to $7.10. The outlook assumes low-to-mid single-digit organic operational revenue growth, driven by portfolio strength in companion-animal and international markets that offsets U.S. softness.

Product and Regional Trends

U.S. companion-animal sales in the fourth quarter totaled $1.0 billion, down 1% year-over-year. Growth in parasiticides and dermatology partially offset declines in osteoarthritis (OA) monoclonal-antibody treatments Librela and Solensia. The OA monoclonal portfolio generated $568 million for the year, down 3% operationally and falling 11% in the quarter.

U.S. livestock sales declined 6% year-over-year to $234 million, reflecting the divestiture of a medicated feed additive business.

International fourth-quarter revenue rose 8% on a reported basis to $1.12 billion, with 5% organic operational growth. Companion-animal sales increased 7% reported, while livestock sales grew 9% reported.

The Simparica franchise reached $1.5 billion for the year, growing 12% operationally. U.S. Trio products surpassed $1.0 billion in annual sales. Dermatology brands Apoquel and Cytopoint totaled $1.74 billion in fiscal 2025, up 6% operationally, supporting companion-animal growth.

Full-year livestock revenue rose 8% organically to $2.72 billion. Zoetis returned $4.1 billion to shareholders through repurchases and dividends in 2025.

Regulatory milestones included European Union approval for Lenivia, a long-acting monoclonal antibody for canine osteoarthritis that provides about three months of relief from a single dose and is expected to launch commercially in 2026. The company also cited approvals for Portela in the EU and Canada for osteoarthritis pain relief in cats.