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ZTS Q2 Earnings & Revenues Beat Estimates, '25 Outlook Raised

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Key Takeaways

  • {\"0\":\"ZTS Q2 earnings of $1.76 per share and revenue of $2.46B both beat estimates, rising from prior-year levels.\",\"1\":\"U.S. pet medicine sales jumped 9%, driven by Simparica Trio and dermatology products.\",\"2\":\"2025 EPS outlook raised to $6.30-$6.40; revenue guidance increased to $9.45B-$9.6B.\"}

Zoetis, Inc. (ZTS - Free Report) delivered second-quarter 2025 adjusted earnings (excluding one-time items) of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.62. In the year-ago quarter, the company delivered adjusted earnings of $1.56 per share.

Total revenues grew 4% year over year to $2.46 billion in the reported quarter, which beat the Zacks Consensus Estimate of $2.40 billion. In the year-ago quarter, the company reported total revenues of $2.36 billion.

ZTS’ Q2 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 increased 4% year over year to $1.36 billion in the reported quarter, beating the Zacks Consensus Estimate of $1.33 billion as well as our model estimate of $1.31 billion.

Sales of companion animal products in the U.S. region jumped 9% from the prior-year quarter’s level to $1.18 billion, primarily driven by Zoetis’ flea, tick and heartworm combination product for dogs, Simparica Trio and sales of key dermatology portfolio, including Apoqueland Cytopoint. The uptick was, however, partially offset by a decline in the sales of ZTS’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensia for cats, likely due to fears of side effects in some dogs. This could be why Zoetis shares are down today.

Apoquel is also approved as the first and only chewable treatment in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. The drug’s expanded label has been contributing to the sales. Earlier this year, the FDA approved a new indication for Zoetis’ Simparica Trio to prevent flea tapeworm infections by targeting and killing vector fleas in treated dogs. With this approval, the triple combo drug is now the only canine combination parasiticide indicated to prevent flea tapeworm infections at the source by eliminating carrier fleas before they can transmit the parasite.

Sales of livestock products in the United States decreased 21% in the first quarter to $180 million. The decline was mainly due to the divestiture of the medicated feed additive (MFA) product portfolio and related assets.

Shares of Zoetis have lost 6.8% year to date compared with the industry’s 6.6% growth.

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Image Source: Zacks Investment Research

Revenues in the International segment increased 3% year over year on a reported basis and up 5% on an operational basis to $1.07 billion, beating the Zacks Consensus Estimate of $1.05 billion as well as our model estimate of $1.06 billion.

Ex-U.S. sales of companion animal products rose 8% on a reported and operational basis to $612 million, driven by growth in several key products. These included OA pain products, Librela for dogs and Solensia for cats, dermatology products like Apoquel and Cytopoint, as well as Zoetis’ parasiticide products, such as Simparica and the Simparica Trio.

Livestock product sales declined 2% year over year on a reported basis to $458 million, largely due to foreign exchange and the divestiture of the MFA product portfolio and related assets. However, the reported figure grew 1% on an operational basis, primarily driven by broad-based growth across core species including swine, fish, poultry and cattle.

ZTS’ 2025 Guidance Raised

Zoetis raised the guidance it had previously issued for 2025. It now expects adjusted earnings in the band of $6.30-$6.40 per share compared with the previously announced range of $6.20-$6.30 per share.

Revenue projection has also been increased to $9.45-$9.6 billion from the previously guided range of $9.425 billion to $9.575 billion.

Zoetis Inc. Price, Consensus and EPS Surprise

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 Arvinas (ARVN - Free Report) , CorMedix (CRMD - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Arvinas’ 2025 loss per share have narrowed from $1.51 to $1.50. Loss per share estimates for 2026 have narrowed from $3.08 to $2.98 during the same period. ARVN stock has plunged 60.7% year to date.

Arvinas’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 82.09%.

In the past 60 days, estimates for CorMedix’s earnings per share have increased from 93 cents to 97 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.64 to $1.65. Year to date, shares of CRMD have rallied 52.7%.

CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.

In the past 60 days, estimates for Immunocore’s 2025 loss per share have narrowed from 86 cents to 68 cents. Loss per share estimates for 2026 have narrowed from $1.34 to $1.10 during the same period. IMCR stock has increased 10.3% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 76.18%.

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