Zoetis Inc - Ordinary Shares - Class A
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+ FollowMarket Cap$29.43B
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Earnings Call Q3 2026
November 5, 2026 - AI Summary
Q3 performance: revenue down, EPS slightly up (in line with expectations)
- Reported and organic revenue: $2.4B, down 1% YoY (driven by ~1% price decline and flat volume).
- Adjusted EPS: $1.75, up 1% YoY, helped by lower share count from ongoing buybacks.
- Profitability: adjusted gross margin 71%, down 30 bps (FX +30 bps, but operational margin down ~60 bps from pricing/mix/inventory-related charges, partially offset by tariff refunds).
- Adjusted net income: $720M, down 7% organic YoY (GAAP included a $78M impairment of in-process R&D assets).
Segment drivers: companion animal weak; livestock strong; diagnostics growing
- Companion animal revenue: $1.6B, down 5% (U.S. down 8%, international flat).
- Key dermatology down 16% to $396M: Apoquel and Cytopoint pressured by competition and pricing actions; U.S. specifically down 13%.
- Simparica (parasiticides): +1% globally to $358M, with notable international growth offsetting U.S. clinic-visit weakness.
- OA pain meds: +2% globally to $137M; driven by EU/Canada traction for Lenivia/Portela; U.S. OA down 12% amid visit declines and safety perception headwinds affecting Librela adoption.
- Companion animal diagnostics: $122M, up 13%, driven by acquisitions (VitalRADS, VPG) plus ongoing platform adoption.
- Livestock revenue: $797M, up 7% (U.S. +5%; international +9%), supported by quality protein demand and vaccine/genetics/product supply factors; described as a bright spot but with inherent weather/disease cyclicality.
Management’s “what’s working” playbook: defend share with disciplined gross-to-net + expand access + lifecycle innovation
- In a softer companion market with intense competition, Zoetis highlighted:
- Promotional “defense” slowing share loss (dermatology U.S. share loss improved to ~4 points in Q3 vs ~7 points in Q2).
- Simparica Trio momentum: 22.5% U.S. share; market leader in puppies; continued international expansion where triple-combination penetration is still early.
- Medical Hub + evidence support to help vets make treatment decisions as customers become more price/value sensitive.
- Lifecycle innovation to extend established franchises (e.g., Convenia RTU approvals/launches; OA category-building with longer-acting options).
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$178.88
125.2% upside
Current Fair Value
125.2% upsideUndervalued by 125.2% based on the discounted cash flow analysis.
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Share Statistics
| Market cap | $29.43 Billion |
|---|---|
| Enterprise Value | $37.33 Billion |
| Annual dividend | $2.12 |
| Dividend yield | 2.67% |
| Earnings per Share | $6.03 |
| Beta | 0.74 |
| Outstanding Shares | 411,600,000 |
Return
| Return on Equity | 75.26% |
|---|---|
| Return on Assets | 16.48% |
| Return on Invested Capital | 27.13% |
Valuation & Multiples
| P/E Ratio | 13.48 |
|---|---|
| PEG | -74.76 |
| Price to Sales | 3.45 |
| Price to Book Ratio | 9.93 |
| Enterprise Value to Revenue | 3.93 |
| Enterprise Value to EBIT | 11.09 |
| Enterprise Value to Net Income | 15 |
| Total Debt to Enterprise | 0.25 |
| Debt to Equity | 2.8 |
Revenue Sources
No data
Last Earnings Call
Report Date
November 5, 2026
EPS Estimate
$1.51
Consensus analyst estimateRevenue Estimate
$2.30 B
Consensus analyst estimateNext Earnings Call
Expected Date
February 11, 2027
EPS Estimate
$1.25
Consensus analyst estimateRevenue Estimate
$2.23 B
Consensus analyst estimateInstitutional Put/Call Ratio
Compares institutional put options with call options. At 0.55, the ratio is below 1, so institutions hold more calls than puts.
| Put/Call Ratio | 0.5464▼ 34.36% |
|---|---|
| Total Calls | 18,300▼ 99.62% |
| Total Puts | 10,000▼ 99.76% |
Institutional Ownership
Holdings and activity of institutional investors.
| Ownership % | 18.03%▼ 77.12% |
|---|---|
| Total Invested | $5.27B▼ 81.77% |
| Investors Holding | 728▼ 768.00% |
About Zoetis Inc
9,200 employees
CEO: Kristin Peck
Zoetis is the leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 65 years of experience in animal health, Zoetis discovers, develops, manufactures and commercializes medicines...