Zoetis (ZTS) posted net income of US$ 591 million in the third quarter of 2026, down 18% from the same period the prior year. Diluted earnings per share (EPS) was US$ 1.44, down 12%. Revenue totaled US$ 2.4 billion (US$ 2,391 million), a 1% decline.
Adjusted net income (non-GAAP, excluding purchase accounting adjustments, costs related to acquisitions and divestitures, and certain significant items) was US$ 720 million, down 5%. Adjusted EPS was US$ 1.75, up 3%. The difference between the reported and adjusted figures includes US$ 129 million in net adjustments, among them write-downs of US$ 89 million, mainly on research and development assets acquired from PetMedix in 2023, and restructuring costs from employee severance.
In the United States, revenue was US$ 1.2 billion, down 6%. Companion animal revenue fell 8%, due to price sensitivity, competition in dermatology, and generics, while livestock revenue rose 5%. In the international segment, revenue was US$ 1.1 billion, up 4%. CEO Kristin Peck said that continued pressure in companion animals was partially offset by growth in livestock and diagnostics.
For 2026, the company narrowed its revenue guidance to between US$ 9.22 billion and US$ 9.32 billion (previously US$ 9.12 billion to US$ 9.32 billion). It raised its adjusted net income guidance to between US$ 2.6 billion and US$ 2.64 billion and its adjusted EPS guidance to between US$ 6.25 and US$ 6.35, up from US$ 6.15 to US$ 6.25. Reported EPS guidance is US$ 5.50 to US$ 5.60.
