01—Abstract
Summary
Summary of the 10-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Zoetis Inc. reported solid financial results for the fiscal year ended December 31, 2025, with total revenue reaching $9.47 billiona, 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 billionb. 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 millionc, 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 billiond, 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.
02—Key points
Key Highlights
- Total 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.
- Net income attributable to Zoetis grew 8% to $2.67 billion, indicating strong profitability.
- Companion animal products continue to be the dominant revenue driver, representing 70% of total revenue, while livestock products accounted for 29%.
- Key products Simparica/Simparica Trio and Apoquel/Apoquel Chewable, along with Librela and Solensia, remain significant contributors to revenue.
- Research and development expenses increased by 2% to $698 million, underscoring the company's commitment to innovation.
- Zoetis continued its share repurchase program, with $2.4 billion remaining under its $6 billion authorization as of December 31, 2025.
- The company maintained a strong liquidity position, with cash and cash equivalents totaling $2.31 billion and a solid working capital of $4.53 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 12, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $9.47B$9.26B | +2.3% |
| Cost of Revenue | $2.67B$2.72B | −1.9% |
| Gross Profit | $6.80B$6.54B | +4.0% |
| SG&A Expenses | $2.38B$2.32B | +2.6% |
| Interest Expense | $222.00M$225.00M | −1.3% |
| Net Income | $2.67B$2.50B | +7.1% |
| EPS (Basic) | $6.03$5.47 | +10.2% |
| EPS (Diluted) | $6.02$5.47 | +10.1% |
| Shares Outstanding (Basic) | 443.44M454.20M | −2.4% |
| Shares Outstanding (Diluted) | 443.83M454.85M | −2.4% |
05—Questions
Frequently Asked Questions
What were Zoetis' key financial performance indicators for the fiscal year 2025?
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.
How did the U.S. and International segments perform in 2025?
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.
What is Zoetis' strategy regarding R&D and product innovation?
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.
How is Zoetis managing its capital structure and returning value to shareholders?
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.
06—Continue