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ZTS · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Zoetis Inc. (ZTS) stock moving?
Zoetis beat Q3 2026 estimates on both adjusted EPS ($1.75 vs $1.51) and sales ($2.391B vs $2.304B) and raised its adjusted EPS and sales guidance, with the sales range narrowed upward. The market did not reward this. GAAP EPS guidance was cut to $5.50-$5.60 from $5.55-$5.65, below the $5.76 estimate, and management guided to a high single-digit revenue decline in dermatology for Q3 and Q4, partly from promotional spending. Management also reported U.S. clinic visits down 3% year to date, canine vet visits down about 5% in Q3, and the CFO, Wetteny Joseph, departing on Nov 2 for Catalent. The price data reflects this reset: the stock closed at $89.20 on Nov 4 on heavy 9.18M volume, then fell to $82.11 on Nov 5 on 10.09M volume and to $79.40 on Nov 6, about 11% below the Nov 4 close. It has since recovered to $82.46 on Nov 10 on falling volume, roughly in its late-October range of about $77-$82. Analyst views are split: Jefferies raised its target to $85 from $83, Morgan Stanley remained Overweight on Oct 29, KeyBanc kept Hold, and BTIG suspended its Buy. The net picture is a company with stronger adjusted results and guidance but a weaker dermatology outlook and softer pet-care demand, with the next company-specific event being the CFO's fireside chat at the Jefferies conference on Nov 16.
News behind the analysis
- Zoetis Reports Third Quarter 2026 Financial ResultsZoetis reported Q3 2026 results with growth in livestock and diagnostics, narrowed its revenue guidance, and raised its adjusted EPS guidance for the full year.
- Zoetis Raises FY2026 Adj EPS Guidance from $6.15-$6.25 to $6.25-$6.35 vs $6.28 Est; Raises FY2026 Sales Guidance from $9.120B-$9.320B to $9.220B-$9.320B vs $9.326B EstQ3 adjusted EPS of $1.75 beat the $1.51 estimate and sales of $2.391B beat $2.304B. The company raised adjusted EPS and sales guidance, with the sales range narrowed upward.
- Zoetis Lowers FY2026 GAAP EPS Guidance from $5.55-$5.65 to $5.50-$5.60 vs $5.76 EstGAAP EPS guidance was cut below consensus, which offset the adjusted guidance increase. The gap between GAAP and adjusted guidance is a point of investor focus.
- Zoetis Exec Says New U.S. Dermatology Competitor Has Had Limited Share Gains Due To Supply Challenges; Expects Third-To-/Fourth Quarter Revenue Decline In High Single-Digit Range, Partly Due To Third-quarter Promotional ActivityManagement expects Q3 and Q4 revenue to fall in the high single digits in dermatology, partly from promotional activity. A new U.S. competitor has gained limited share so far because of supply constraints.
- Zoetis Executive Says Q3 Canine Vet Visits Declined ~5%, With Itch-Related Visits Down ~3%; Volume Declines From Generic Convenia And Cerenia Competition Moderated To Lowest Level Since Those Generics Entered Market In Q1Canine vet visits fell about 5% in Q3, with itch-related visits down about 3%. Volume declines from generic competition eased to their lowest level since the generics entered the market.
- Wetteny Joseph Departs Zoetis to Join Catalent as Group PresidentWetteny Joseph left his role as EVP and Chief Financial Officer at Zoetis to become Group President of Pharma and Consumer Health at Catalent. The CFO role is now listed under Jay Saccaro, EVP, CFO and COO.
- Jefferies Adjusts Price Target on Zoetis to $85 From $83Jefferies raised its price target on Zoetis from $83 to $85 after the Q3 results. The stock closed at $82.46 on Nov 10.
- KeyBanc Maintains Zoetis (ZTS) With Hold RatingKeyBanc analyst Scott Schoenhaus reaffirmed a Hold rating on Zoetis shares after the earnings report.
- BTIG Suspends Buy Rating on ZoetisBTIG suspended its Buy rating on Zoetis, removing a supportive rating from the stock's coverage ahead of the Q3 report.
- Neogen Says Australian, New Zealand Review Of Genomics Sale To Zoetis Expected To Conclude Early 2027; Zoetis Offered To Divest Some Australian AssetsNeogen said the Australian and New Zealand regulatory review of its genomics sale to Zoetis is expected to conclude in early 2027. Zoetis has offered to divest some Australian assets as part of that review.
About ZOETIS INC.
Zoetis is the world's largest animal health company. It spun off from Pfizer in 2013 and makes medicines, vaccines and diagnostic tests for pets and livestock, selling them to vets and farmers in more than 100 countries. It is known for big pet brands such as the Apoquel and Cytopoint anti-itch treatments, Simparica Trio for parasite protection, and the Librela and Solensia pain shots for arthritis in dogs and cats.
How it makes money
Zoetis earns its money selling animal health products: medicines that kill parasites, ease itching or treat pain, plus vaccines, anti-infectives and diagnostic tests and equipment. Pet (companion animal) products bring in roughly two-thirds of revenue, and livestock products for cattle, pigs, poultry and fish bring in most of the rest. The US makes up a little over half of sales, with the remainder coming from international markets. Total revenue was roughly $9.5 billion in 2025. In 2026 the company cut its full-year outlook to about $9.1 to $9.3 billion because pet owners became more price-sensitive, made fewer vet visits and bought fewer premium products.
What usually moves ZTS
- Number of pet vet visits and spending by pet owners
- Sales and competition for its key pet drugs (Apoquel, Simparica, Librela)
- Safety questions about products and new rival drugs
- Livestock market conditions and global economic trends
- Currency swings and new product launches