10-QPeriod: Q3 FY2025

Zoetis Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 4, 2025For Securities:ZTS

Summary

Zoetis Inc. reported solid financial results for the nine months ended September 30, 2025, with revenue increasing by 2% to $7.08 billion and net income attributable to Zoetis Inc. growing by 9% to $2.07 billion. This growth was driven by a combination of price increases and volume growth in key franchises, partially offset by the impact of a divestiture. The company demonstrated improved cost management, with Cost of Sales as a percentage of revenue decreasing from 29.0% to 27.6% year-over-year for the nine-month period. Key financial highlights include a robust increase in diluted Earnings Per Share (EPS) by 11% to $4.65 for the nine-month period. The company also managed its balance sheet effectively, with cash and cash equivalents increasing to $2.08 billion and a strong working capital position. Zoetis maintained compliance with its debt covenants and has a significant authorization remaining for its share repurchase program, indicating a continued focus on returning value to shareholders.

Financial Highlights

52 data points
Beta

Revenue

$2.40B

71.5% Gross Margin

Net Income

$721.00M

30.0% Net Margin

EPS (Diluted)

$1.63

Total Assets

$15.16B

Cash & Equivalents

$2.08B

Free Cash Flow

$805.00M

Financial Statements
Beta
Revenue$2.40B
Cost of Revenue$683.00M
Gross Profit$1.72B
SG&A Expenses$579.00M
Interest Expense$58.00M
Net Income$721.00M
EPS (Basic)$1.63
EPS (Diluted)$1.63
Shares Outstanding (Basic)442.90M
Shares Outstanding (Diluted)443.20M

Key Highlights

  • 1Revenue increased by 2% to $7.08 billion for the nine months ended September 30, 2025, compared to the same period in 2024.
  • 2Net income attributable to Zoetis Inc. rose by 9% to $2.07 billion for the nine months ended September 30, 2025.
  • 3Diluted Earnings Per Share (EPS) increased by 11% to $4.65 for the nine months ended September 30, 2025.
  • 4Cost of Sales as a percentage of revenue improved from 29.0% to 27.6% for the nine-month period.
  • 5Cash and cash equivalents stood at $2.08 billion as of September 30, 2025.
  • 6The company announced a new $1.3 billion revolving credit facility maturing in December 2027.
  • 7Zoetis has a remaining authorization of $4.5 billion under its share repurchase program.

Frequently Asked Questions

Revenue growth in the nine months ended September 30, 2025, was primarily driven by a combination of price growth of approximately 4%, volume growth from key franchises of approximately 2%, and volume growth from other in-line products of approximately 1%. This was partially offset by a volume decrease related to the divestiture of the medicated feed additive product portfolio.

Zoetis demonstrated improved expense management. Cost of Sales as a percentage of revenue decreased in both the three and nine-month periods compared to the prior year, mainly due to price increases, the favorable impact of the medicated feed additive divestiture, and favorable foreign exchange. Selling, general, and administrative expenses saw an increase but were managed in relation to revenue growth.

Zoetis maintains a strong liquidity position with $2.08 billion in cash and cash equivalents as of September 30, 2025. The company also has a new $1.3 billion revolving credit facility and reported a healthy current ratio of 3.64:1, indicating ample ability to meet short-term obligations.

During the nine months ended September 30, 2025, Zoetis issued $1.85 billion in new senior notes and used the proceeds to redeem outstanding notes maturing in 2025. This resulted in a significant increase in long-term debt and a decrease in the current portion of long-term debt.