10-KPeriod: FY2025

Zoetis Inc. Annual Report, Year Ended Dec 31, 2025

Filed February 12, 2026For Securities:ZTS

Summary

Zoetis Inc. reported solid financial results for the fiscal year ended December 31, 2025, with total revenue reaching $9.47 billion, a 2% increase year-over-year, driven by a 3% operational revenue growth. This growth was primarily attributed to price increases and contributions from key product franchises, partially offset by the impact of a divestiture. Net income grew 8% to $2.67 billion. The company continues to demonstrate strength in both its U.S. and International segments, with companion animal products representing a significant 70% of total revenue. Key product lines like Simparica/Simparica Trio and Apoquel/Apoquel Chewable remain strong contributors, accounting for a substantial portion of overall revenue. Zoetis also continues to invest in research and development, with expenses totaling $698 million, focusing on both new product development and lifecycle innovation. The company's balance sheet remains robust, with total assets growing to $15.47 billion. Zoetis actively manages its capital structure, including a significant share repurchase program of up to $6 billion, demonstrating a commitment to returning value to shareholders. The company's financial health is supported by a strong credit facility and diverse revenue streams across multiple species and product categories. Looking ahead, Zoetis is focused on its strategic pillars of innovation, customer experience, digital solutions, talent development, sustainability, and operational excellence to drive continued growth in the dynamic animal health market.

Financial Highlights

53 data points
Beta

Revenue

$9.47B

71.8% Gross Margin

Net Income

$2.67B

28.2% Net Margin

EPS (Diluted)

$6.02

Total Assets

$15.49B

Cash & Equivalents

$2.45B

Free Cash Flow

$2.28B

Financial Statements
Beta
Revenue$9.47B
Cost of Revenue$2.67B
Gross Profit$6.80B
SG&A Expenses$2.38B
Interest Expense$222.00M
Net Income$2.67B
EPS (Basic)$6.03
EPS (Diluted)$6.02
Shares Outstanding (Basic)443.44M
Shares Outstanding (Diluted)443.83M

Key Highlights

  • 1Total revenue increased by 2% to $9.47 billion for the fiscal year ended December 31, 2025, driven by operational revenue growth of 3% due to price increases and contributions from key franchises.
  • 2Net income attributable to Zoetis grew 8% to $2.67 billion, indicating strong profitability.
  • 3Companion animal products continue to be the dominant revenue driver, representing 70% of total revenue, while livestock products accounted for 29%.
  • 4Key products Simparica/Simparica Trio and Apoquel/Apoquel Chewable, along with Librela and Solensia, remain significant contributors to revenue.
  • 5Research and development expenses increased by 2% to $698 million, underscoring the company's commitment to innovation.
  • 6Zoetis continued its share repurchase program, with $2.4 billion remaining under its $6 billion authorization as of December 31, 2025.
  • 7The company maintained a strong liquidity position, with cash and cash equivalents totaling $2.31 billion and a solid working capital of $4.53 billion.

Frequently Asked Questions

Zoetis reported total revenue of $9.47 billion, a 2% increase year-over-year, with net income attributable to Zoetis reaching $2.67 billion, an 8% increase. Operational revenue growth was 3%, primarily driven by price increases and contributions from key product franchises.

The U.S. segment revenue was $5.10 billion, showing minimal change year-over-year, with growth in companion animal products offset by a decline in livestock products due to a divestiture. The International segment revenue grew by 4% to $4.25 billion, driven by strong companion animal product sales, including key dermatology and mAb products, and growth in livestock products. International segment earnings saw a significant 7% increase.

Zoetis maintains a strong focus on R&D, with expenses increasing to $698 million in 2025. The company's strategy involves both developing new products and pursuing product lifecycle innovation. Key product lines like Simparica/Simparica Trio and Apoquel/Apoquel Chewable are highlighted as successful examples of this strategy, with continued investment in areas like dermatology and monoclonal antibody therapies for osteoarthritis pain.

Zoetis is actively managing its capital structure, evidenced by its $6 billion share repurchase program, with $2.4 billion remaining as of year-end 2025. The company also reported that it continued paying quarterly cash dividends and expects to maintain this practice. The company also issued $2.0 billion in convertible senior notes and used a significant portion of the proceeds for additional stock repurchases.