Zoetis (ZTS) Stifel Jaws & Paws Conference 2026 summary

Updated 2026 guidance and growth drivers

• Full-year organic operational growth guidance set at 2%-5%, reflecting a widened range due to persistent macro and competitive pressures, especially in dermatology and parasiticides.

• Sequential improvement expected in OA pain and Simparica franchises, with livestock and diagnostics showing strong double-digit growth.

• Inventory dynamics in Q1 were driven by softer market demand, not abnormal distributor behavior; this is not expected to persist through the year.

• Guidance incorporates aggressive competitive launches and macroeconomic headwinds, with no significant uplift in revenue dollars between first and second half.

• First half/second half dynamic anticipated from the outset, with comps playing a significant role in growth rates.

Competitive strategy and pricing approach

• No intention to reset prices significantly; focus remains on maintaining premium pricing and targeted promotions rather than broad price reductions.

• Emphasis on differentiated portfolio, innovation, and customer experience to retain market leadership in key categories.

• Loyalty programs for both vets and pet owners are being refined, with pilots underway to provide immediate discounts at checkout and encourage broader product adoption.

• Market expansion efforts include direct-to-consumer advertising and initiatives to drive demand and loyalty.

Product pipeline and innovation

• Cytopoint Plus (three-month formulation) expected to launch in 2027, aiming to improve compliance and expand the market.

• Early launches of Lenivia and Portela in select EU markets and Canada are underway, with a focus on building specialist support before broader rollout.

• New diagnostic chemistry system anticipated for launch in the second half of the year, aiming to enhance competitiveness in the U.S.

• Future pipeline includes renal and oncology products, targeting large unmet needs with a holistic approach combining therapeutics and diagnostics.