01—Abstract
Summary
Summary of the 10-Q filed November 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Zoetis Inc. reported solid financial results for the nine months ended September 30, 2025, with revenue increasing by 2% to $7.08 billiona 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 $4.65b for the nine-month period.
The company also managed its balance sheet effectively, with cash and cash equivalents increasing to $2.08 billionc 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.
02—Key points
Key Highlights
- Revenue increased by 2% to $7.08 billion for the nine months ended September 30, 2025, compared to the same period in 2024.
- Net income attributable to Zoetis Inc. rose by 9% to $2.07 billion for the nine months ended September 30, 2025.
- Diluted Earnings Per Share (EPS) increased by 11% to $4.65 for the nine months ended September 30, 2025.
- Cost of Sales as a percentage of revenue improved from 29.0% to 27.6% for the nine-month period.
- Cash and cash equivalents stood at $2.08 billion as of September 30, 2025.
- The company announced a new $1.3 billion revolving credit facility maturing in December 2027.
- Zoetis has a remaining authorization of $4.5 billion under its share repurchase program.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 4, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.40B$2.39B | +0.5% |
| Cost of Revenue | $683.00M$701.00M | −2.6% |
| Gross Profit | $1.72B$1.69B | +1.8% |
| SG&A Expenses | $579.00M$565.00M | +2.5% |
| Interest Expense | $58.00M$57.00M | +1.8% |
| Net Income | $721.00M$692.00M | +4.2% |
| EPS (Basic) | $1.63$1.51 | +7.9% |
| EPS (Diluted) | $1.63$1.50 | +8.7% |
| Shares Outstanding (Basic) | 442.90M452.90M | −2.2% |
| Shares Outstanding (Diluted) | 443.20M453.50M | −2.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth in the nine months ended September 30, 2025?
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.
How did Zoetis manage its expenses in the reported period?
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.
What is the company's liquidity position as of September 30, 2025?
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.
What are the key financial changes related to the company's debt?
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.
06—Continue