How much of Zoetis's Q4 2025 International growth came from timing rather than underlying demand?

Management said operational changes tied to the Expected Fiscal Year Alignment accelerated sales into Q4 2025 and added approximately 2.5% to 3.5% to International segment sales. The company also delayed some December 2025 orders into 2026 and shifted price-increase timing, so part of the reported International growth is not expected to recur.

What does the 2026 guidance imply for growth and earnings?

Revenue guidance of $9.825–$10.025B implies 3%–5% organic operational growth. Adjusted EPS of $7.00–$7.10 represents growth over the $6.41 adjusted EPS reported for 2025, while reported EPS of $6.65–$6.75 is guided after roughly $65M of expected significant items and acquisition-related costs. Guidance uses January 20, 2026 FX rates.

Why did U.S. Livestock revenue decline so sharply in 2025?

The decline mainly reflects the divestiture of the medicated feed additive (MFA) product portfolio and related assets, which reduced U.S. Livestock revenue by about 18% for the year. On an organic operational basis, U.S. Livestock grew 4%, so the underlying business was stable.

Is the OA pain franchise still a growth driver?

Mixed signals exist. Librela and Solensia sales declined in the U.S. in Q4 2025, but Zoetis received approvals for long-acting Lenivia (dogs) and Portela (cats) in Canada and the EU and expects launches in 2026. Investors should watch whether these new products can reverse the decline in the existing franchise.

Are the non-GAAP adjustments material to the earnings picture?

Yes. For FY2025, reported net income of $2.67B was adjusted upward to $2.85B by excluding $99M of purchase accounting, $2M of acquisition costs, and $73M of certain significant items, including business process transformation costs tied to the ERP program. Investors should review the reconciliation tables, since these adjustments add about $0.39 to diluted EPS.

ZTS 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 12, 2026. Cited figures are marked; the original filing is the authoritative source.

Zoetis reported Q4 and full-year 2025 results on February 12, 2026.

For Q4, revenue rose 3% to $2.39 billion^a (4% organic operational growth), and reported net income rose 4% to $603 million, or $1.37 per diluted share. Adjusted diluted EPS was $1.48, up 6% on a reported basis. For full-year 2025, revenue reached $9.47 billion (up 2% reported, 6% organic operational), reported EPS was $6.02 (up 10%), and adjusted EPS was $6.41 (up 8%).

Growth was led by Companion Animal, which rose 5%^b for the year, while Livestock declined 5% reported (up 3% organic) largely because of the divestiture of the medicated feed additive portfolio. Quality of the Q4 International beat warrants scrutiny. Management disclosed that the operational changes tied to the elimination of the one-month reporting lag (the "Expected Fiscal Year Alignment") pulled roughly 2.5% to 3.5% of International segment sales into Q4 2025, and it does not expect that effect to recur at fiscal year-end 2026.

The company also shifted the timing of annual price increases in certain International subsidiaries into 2026 and delayed processing of some December 2025 orders into 2026. Investors should therefore treat part of Q4 growth as timing-driven rather than underlying demand. For 2026, Zoetis guided to revenue of $9.825 to $10.025 billion^c, with 3% to 5% organic operational growth, and adjusted diluted EPS of $7.00 to $7.10 (reported EPS of $6.65 to $6.75).

Pipeline news included first approvals for long-acting OA pain products Lenivia (dogs) and Portela (cats) in Canada and the EU, with launches planned this year. The guidance reflects January 20, 2026 foreign exchange rates and about $65 million^d of expected significant items and acquisition-related costs.

02—Key points

Key Highlights

Q4 2025 revenue of $2.39B grew 3% reported and 4% organic operational; U.S. revenue fell 2% while International grew 8% reported.
Q4 International growth was flattered by roughly 2.5%–3.5% from accelerated sales tied to the fiscal year alignment, which management does not expect to recur at FY2026 year-end.
Full-year 2025 revenue of $9.47B grew 2% reported and 6% organic operational; adjusted EPS of $6.41 rose 8%, and reported EPS of $6.02 rose 10%.
Full-year 2026 guidance: revenue of $9.825–$10.025B (3%–5% organic growth), adjusted EPS of $7.00–$7.10, and reported EPS of $6.65–$6.75.
U.S. Livestock sales fell 14% for FY2025 on a reported basis, reflecting the divestiture of the medicated feed additive portfolio, while U.S. Companion Animal grew 4%.
Adjusted SG&A and R&D are guided to $2.43–$2.49B and $715–$725M for 2026, with adjusted cost of sales near 28.0% of revenue.
Pipeline milestones include Lenivia and Portela approvals in Canada and the EU, with launches planned in 2026, and Librela/Solensia (OA pain) sales declined in the U.S. in Q4.

03—Questions

Frequently Asked Questions

How much of Zoetis's Q4 2025 International growth came from timing rather than underlying demand?
Management said operational changes tied to the Expected Fiscal Year Alignment accelerated sales into Q4 2025 and added approximately 2.5% to 3.5% to International segment sales. The company also delayed some December 2025 orders into 2026 and shifted price-increase timing, so part of the reported International growth is not expected to recur.
What does the 2026 guidance imply for growth and earnings?
Revenue guidance of $9.825–$10.025B implies 3%–5% organic operational growth. Adjusted EPS of $7.00–$7.10 represents growth over the $6.41 adjusted EPS reported for 2025, while reported EPS of $6.65–$6.75 is guided after roughly $65M of expected significant items and acquisition-related costs. Guidance uses January 20, 2026 FX rates.
Why did U.S. Livestock revenue decline so sharply in 2025?
The decline mainly reflects the divestiture of the medicated feed additive (MFA) product portfolio and related assets, which reduced U.S. Livestock revenue by about 18% for the year. On an organic operational basis, U.S. Livestock grew 4%, so the underlying business was stable.
Is the OA pain franchise still a growth driver?
Mixed signals exist. Librela and Solensia sales declined in the U.S. in Q4 2025, but Zoetis received approvals for long-acting Lenivia (dogs) and Portela (cats) in Canada and the EU and expects launches in 2026. Investors should watch whether these new products can reverse the decline in the existing franchise.
Are the non-GAAP adjustments material to the earnings picture?
Yes. For FY2025, reported net income of $2.67B was adjusted upward to $2.85B by excluding $99M of purchase accounting, $2M of acquisition costs, and $73M of certain significant items, including business process transformation costs tied to the ERP program. Investors should review the reconciliation tables, since these adjustments add about $0.39 to diluted EPS.

04—Continue

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