Zoetis, Inc. ZTS delivered first-quarter 2026 adjusted earnings (excluding one-time items) of $1.53 per share, which missed the Zacks Consensus Estimate of $1.61. In the year-ago quarter, the company had delivered adjusted earnings of $1.48 per share.
Total revenues grew 3% year over year to $2.26 billion in the first quarter, which marginally missed the Zacks Consensus Estimate of $2.30 billion. In the year-ago quarter, the company reported total revenues of $2.22 billion.
Shares of Zoetis were down during the pre-market hours today following the weaker-than-expected results as well as the reduced 2026 guidance.
Year to date, shares of Zoetis have plunged 11.6% compared with the industry’s decline of 1.3%.
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ZTS’ Q1 Results in Detail
Zoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — the United States and International.
Revenues from the U.S. segment decreased 8% year over year to $1.09 billion in the reported quarter, missing the Zacks Consensus Estimate of $1.20 billion.
Sales of companion animal products in the U.S. region declined 11% year over year to $865 million, owing to softer end-market demand and an increasingly competitive landscape. Zoetis’ key dermatology franchise and Simparica Trio faced heightened competitive pressure and persistent macroeconomic-driven price sensitivity. Also, generic competition for the Convenia and Cerenia brands, as well as lower sales of ZTS’ monoclonal antibody product for osteoarthritis (OA) pain, Librela, for dogs resulted in the decline.
Sales of livestock products in the United States increased 7% in the first quarter to $225 million. The increase was mainly due to broad-based strength across cattle, poultry and swine products.
Revenues in the International segment increased 17% year over year on a reported basis and 10% on an operational basis to $1.15 billion, beating the Zacks Consensus Estimate of $1.08 billion.
Ex-U.S. sales of companion animal products rose 15% on a reported basis and 7% operationally to $654 million, driven by growth in the parasiticides portfolio, including Simparica Trio, along with contributions from diagnostics, vaccines, and the timing of price increases.
Livestock product sales increased 19% year over year on a reported basis and 14% operationally to $495 million, driven by broad-based growth across all core species, including cattle, swine, poultry and fish.
ZTS’ 2026 Guidance
Zoetis lowered its earnings and revenue outlook for 2026.
The company now expects revenues to be in the range of $9.68 billion and $9.96 billion, reflecting an expected operational growth of 2-5%.
Previously, the company projected revenues between $9.825 billion and $10.025 billion, representing an expected operational growth of 3-5%.
Adjusted earnings are now expected in the range of $6.85-$7.00 per share in 2026, compared with the previous expectation of $7.00-$7.10 per share.
Zoetis Inc. Price, Consensus and EPS Surprise
Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote
ZTS’ Zacks Rank and Stocks to Consider
Zoetis currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Agenus AGEN, AnaptysBio ANAB and Amarin AMRN, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Agenus’ 2026 earnings per share have risen from 54 cents to $1.30, while loss per share estimates for 2027 have narrowed from $1.91 to $1.52 during the same time. AGEN shares have surged 23.9% year to date.
Agenus’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 31.42%.
Over the past 60 days, 2026 loss per share estimates for AnaptysBio have narrowed from $1.42 to $1.40, while estimates for 2027 have moved from a loss of $4.59 per share to earnings of $3.01 during the same time. ANAB stock has increased 38.9% year to date.
AnaptysBio’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 59.70%.
Over the past 60 days, 2026 loss per share estimates for Amarin have narrowed from $7.01 to $6.36, while the same for 2027 have narrowed from $5.50 to $4.64 during the same time. AMRN stock has risen 6.8% year to date.
Amarin's earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 50.02%.
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This article originally published on Zacks Investment Research (zacks.com).