01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Zoetis Inc. reported first-quarter 2026 results with total revenue of $2,262 milliona, a 3% increase year-over-year.
This growth was driven by price increases and contributions from other in-line products, partially offset by volume decreases in key franchises and the impact of the MFA divestiture. The company experienced a favorable foreign currency impact of 4% on reported revenue growth. Net income attributable to Zoetis Inc. was $601 millionb, a slight decrease of 1% compared to the prior year's $602 million.
Diluted earnings per share remained flat at $1.42c. The company highlighted a shift in its international segment's revenue growth, with operational revenue increasing by 9%, favorably impacted by foreign exchange. Zoetis also announced an agreement to acquire Neogen's animal genomics business, expected to close in the second half of 2026.
02—Key points
Key Highlights
- Total revenue increased by 3% to $2,262 million in Q1 2026, driven by price growth and other product volumes, despite a 1% operational decline.
- Net income attributable to Zoetis Inc. was $601 million, a marginal decrease of 1% compared to $602 million in Q1 2025.
- Diluted Earnings Per Share (EPS) remained stable at $1.42 for Q1 2026.
- The U.S. segment saw an 8% revenue decline, primarily in companion animal products due to market demand and competition, while the International segment reported a 17% revenue increase.
- Zoetis is acquiring Neogen's animal genomics business, expected to close in the second half of 2026.
- Cost of sales increased by 4% to $641 million, impacting gross margin to 71.7% from 71.9% in the prior year.
- Research and development expenses rose by 11% to $180 million, signaling continued investment in innovation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.26B$2.20B | +2.9% |
| Cost of Revenue | $641.00M$618.00M | +3.7% |
| Gross Profit | $1.62B$1.58B | +2.6% |
| SG&A Expenses | $588.00M$574.00M | +2.4% |
| Interest Expense | $62.00M$54.00M | +14.8% |
| Net Income | $601.00M$602.00M | −0.2% |
| EPS (Basic) | $1.42$1.34 | +6.0% |
| EPS (Diluted) | $1.42$1.34 | +6.0% |
| Shares Outstanding (Basic) | 422.10M447.60M | −5.7% |
| Shares Outstanding (Diluted) | 422.40M448.00M | −5.7% |
05—Questions
Frequently Asked Questions
What was Zoetis's revenue performance in the first quarter of 2026?
Zoetis reported total revenue of $2,262 million for the first quarter of 2026, an increase of 3% compared to the same period in 2025. On an operational basis, excluding foreign exchange impacts, revenue decreased by 1%. This was driven by a 2% price increase and a 1% volume growth from other products, partially offset by a 3% volume decrease in key franchises and a 1% decrease due to the MFA divestiture.
How did profitability fare in the first quarter of 2026?
Net income attributable to Zoetis Inc. was $601 million for the first quarter of 2026, a slight decrease of 1% from $602 million in the prior year. Diluted earnings per share remained stable at $1.42. The effective tax rate decreased to 20.7% from 22.1% in the prior year, primarily due to a more favorable jurisdictional mix of earnings.
What are the key segment performances?
The U.S. segment experienced an 8% revenue decrease to $1,090 million, largely driven by a decline in companion animal products due to market softness and increased competition. Conversely, the International segment saw a significant 17% revenue increase to $1,149 million, benefiting from both operational growth (9%) and a favorable foreign exchange impact (8%).
What significant corporate developments were announced?
Zoetis announced an agreement to acquire Neogen's animal genomics business, which is expected to close in the second half of 2026. This strategic move aims to strengthen the company's position in animal genetics.
06—Continue