Q3 revenue was $2.391B, down 1% reported; adjusted EPS rose 3% to $1.75, while GAAP net income fell 18% to $591M.
Livestock, International and Diagnostics growth partly offset continued Companion Animal pressure, particularly in the U.S.
Priorities included defending key franchises, advancing pipeline milestones and improving operating efficiency.
Adjusted net income was $720M, down 5% reported and 7% operationally; adjusted diluted EPS was $1.75, up 3% reported and 1% operationally.
Adjusted gross margin was 71.0%, versus 71.3% a year earlier; adjusted cost of sales was 29.0% of revenue versus 28.7%.
Adjusted operating expenses were $749M versus $751M; adjusted SG&A was $571M and adjusted R&D was $174M.
Q3 income before taxes declined 18% to $729M; nine-month operating cash flow was $1.880B, down from $2.056B.
FY2026 revenue guidance narrowed to $9.220B–$9.320B, with an organic operational decline of 2%–1%; the prior range was $9.120B–$9.320B.
Adjusted net income guidance increased to $2.600B–$2.640B, with an organic operational decline of 7%–5%; adjusted diluted EPS guidance rose to $6.25–$6.35 from $6.15–$6.25.
Reported diluted EPS guidance is $5.50–$5.60; guidance uses FX rates as of October 20, 2026.
2027 planning assumes no improvement in macro conditions or pet-owner spending, with current competitive pressures expected to persist through most of the year.
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Zoetis Inc. is an American drug manufacturer that produces and sells medicine, medications, and vaccinations for both pets and livestock. The company is one of the largest in the industry, and its product range includes treatments for a variety of animal health issues, from common ailments in domestic pets to disease prevention in livestock. Zoetis is active in over 100 countries worldwide and has a dominating presence in the American animal health sector. The company is headquartered in Parsippany, New Jersey, and its shares are listed on the NYSE.
Zoetis was founded in 1952 as a subsidiary of Pfizer and marked the beginning of the pharmaceutical company’s agricultural division. Over the years, the division evolved, focusing on the development and marketing of vaccines, medicines, and other products for animals. The division grew to become one of the largest players in the industry, and its parent company decided it was best to go separate ways from the company, for Pfizer to focus on its business while allowing Zoetis to continue with what it did best. Said and done, and in 2013 Pfizer spun off the division and Zoetis became its own company. Today, it competes against names such as Elanco and Virbac in the animal health industry.
The company’s portfolio includes vaccines, medicines, diagnostics, and genetic tests, catering to both livestock and companion animals. These products aim to prevent, treat, and control diseases, ensuring owners can provide the best possible healthcare possible for their animals. In the livestock sector, Zoetis provides medications and vaccines for cattle, swine, poultry, and sheep, with its products focusing on ensuring that the animals are healthy and productive. For companion animals, Zoetis offers vaccines, dermatology products, anti-infectives, and products for pain and management.
Zoetis provides a comprehensive range of products and services specifically designed for veterinarians. Beyond pharmaceuticals, which are prescribed and oftentimes administered by veterinarians, Zoetis offers diagnostic tools and tests. Moreover, Zoetis provides digital tools such as practice management software, helping veterinarians keep track of their operations and journals.
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