10-QPeriod: Q2 FY2026

Zoetis Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 6, 2026For Securities:ZTS

Summary

Zoetis Inc. reported a slight revenue decrease of 0.2% to $2,468 million for the three months ended June 30, 2026, compared to $2,474 million in the prior year period. This was driven by a 2% operational decrease, partially offset by a favorable foreign exchange impact. For the six months ended June 30, 2026, revenue grew 1% to $4,730 million from $4,672 million in the prior year, also benefiting from foreign exchange. Net income attributable to Zoetis Inc. decreased by 4.8% to $691 million for the quarter and by 2.8% to $1,292 million for the six months, reflecting increased restructuring charges and other costs. The company announced a definitive agreement to acquire Neogen's animal genomics business, expected to close in the second half of 2026. The U.S. segment experienced a revenue decline of 7% for both the quarter and the six months, primarily due to softer demand and increased competition in the companion animal market, though livestock product sales showed growth. The International segment performed more robustly, with revenue increasing by 8% for the quarter and 12% for the six months, driven by strong growth in both companion animal and livestock products, further boosted by favorable foreign exchange rates. The company continues to actively manage its financial resources, evidenced by its robust credit facility and a significant share repurchase program. Zoetis Inc. also highlighted progress in its ongoing business process transformation program, including the Fiscal Year Alignment for its international subsidiaries. Despite some headwinds in the U.S. market, the company's diversified product portfolio and international expansion, coupled with strategic acquisitions like the Neogen animal genomics business, position it for continued resilience and growth.

Key Highlights

  • 1Revenue for the three months ended June 30, 2026, was $2,468 million, a slight decrease of 0.2% from $2,474 million in the prior year, with a 2% operational decrease partially offset by a 2% favorable foreign exchange impact.
  • 2Revenue for the six months ended June 30, 2026, was $4,730 million, an increase of 1% from $4,672 million in the prior year, with a 1% operational decrease significantly offset by a 2% favorable foreign exchange impact.
  • 3Net income attributable to Zoetis Inc. for the three months ended June 30, 2026, was $691 million, down 4.8% from $726 million in the prior year, impacted by higher restructuring charges and acquisition/divestiture-related costs.
  • 4Net income attributable to Zoetis Inc. for the six months ended June 30, 2026, was $1,292 million, down 2.8% from $1,328 million in the prior year.
  • 5The U.S. segment saw a revenue decline of 7% for both the three and six month periods, primarily due to challenging conditions in the companion animal market, although livestock sales grew.
  • 6The International segment demonstrated strong performance, with revenue increasing by 8% for the quarter and 12% for the six months, driven by both companion animal and livestock product sales, and a favorable foreign exchange impact.
  • 7Zoetis Inc. announced a definitive agreement to acquire Neogen's animal genomics business, expected to close in the second half of 2026.

Frequently Asked Questions

For the three months ended June 30, 2026, Zoetis reported total revenue of $2,468 million, a slight decrease of 0.2% compared to $2,474 million in the same period of 2025. This was driven by a 2% operational decrease, partially offset by a favorable foreign exchange impact of 2%.

The U.S. segment experienced a revenue decrease of 7% for both the three and six-month periods ended June 30, 2026, primarily due to softer demand and increased competition in the companion animal market. In contrast, the International segment showed robust growth, with revenue increasing by 8% for the quarter and 12% for the six months, supported by strong performance in both companion animal and livestock products and a favorable foreign exchange impact.

Zoetis announced a definitive agreement to acquire Neogen's animal genomics business. This transaction is expected to close in the second half of 2026. Further details on the financial impact and strategic rationale will likely be provided upon closing and integration.

Net income attributable to Zoetis Inc. decreased for both the three and six-month periods ended June 30, 2026. This was primarily due to increased restructuring charges and other costs associated with acquisition and divestiture activities, as well as unfavorable product mix and foreign exchange impacts on cost of sales.