ZTS Q3 Earnings Beat, Revenues Miss, '25 Sales View Cut, Stock Down

Zoetis, Inc. ZTS delivered third-quarter 2025 adjusted earnings (excluding one-time items) of $1.70 per share, which surpassed the Zacks Consensus Estimate of $1.62. In the year-ago quarter, the company delivered adjusted earnings of $1.58 per share.

Total revenues grew 1% year over year to $2.4 billion in the reported quarter, which missed the Zacks Consensus Estimate of $2.41 billion. In the year-ago quarter, the company reported total revenues of $2.39 billion.

Shares of Zoetis are down 13% today following the mixed earnings results.

ZTS’ Q3 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 2% year over year to $1.32 billion in the reported quarter, missing the Zacks Consensus Estimate of $1.34 billion as well as our model estimate of $1.38 billion.

Sales of companion animal products in the U.S. region were flat year over year at $1.07 billion. Growth in Zoetis’ parasiticides portfolio, including Simparica and Revolution franchises, diagnostics and key dermatology portfolio, including Apoqueland Cytopoint, was offset by a decline in the sales of ZTS’ monoclonal antibody products for osteoarthritis (OA) pain, Librela for dogs and Solensiafor cats, likely due to fears of side effects in some dogs. This has also likely contributed to Zoetis’ stock price drop 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. Earlier this year, the FDA approved a new indication for Zoetis’ flea, tick and heartworm combination product for dogs, 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 9% in the third quarter to $253 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 11.4% year to date against the industry’s 6.6% growth.

Revenues in the International segment increased 3% year over year on a reported basis and up 1% on an operational basis to $1.06 billion, beating the Zacks Consensus Estimate of $1.04 billion as well as our model estimate of $1.03 billion.

Ex-U.S. sales of companion animal products rose 8% on a reported basis and 4% operationally to $583 million, driven by growth in several key products. These included Zoetis’ parasiticides portfolio, including both Simparica and Revolution/Stronghold franchises, as well as key dermatology products Apoquel and Cytopoint.

Livestock product sales declined 2% year over year on a reported basis and 3% operationally to $472 million, largely due to the divestiture of the MFA product portfolio and related assets.

ZTS Cuts Sales Guidance for 2025

Zoetis maintained its previously announced guidance for 2025 adjusted earnings in the band of $6.30-$6.40 per share.

However, the company has cut its 2025 revenue projection to $9.4-$9.475 billion from the previously guided range of $9.45 billion to $9.6 billion, further fueling the downward trend of the stock price today.

ZTS’ Key Updates

During the reported quarter, Zoetis secured a positive opinion from the European Medicines Agency’s Committee for Veterinary Medicinal Products for Lenivia, its long-acting monoclonal antibody therapy for canine OA pain. A final European decision is expected in late 2025, with commercial launch projected for 2026. Lenivia has shown durable pain relief and improved mobility for up to three months from a single dose, offering a convenient alternative to monthly OA injections. The product will complement Zoetis’ existing OA franchise, including Librela for dogs, strengthening the company’s competitive positioning in a growing chronic pain market.

A potential EU approval would reinforce Zoetis’ leadership in companion-animal biologics and expand its portfolio in the high-need OA segment, where as many as 40% of dogs are affected. With recent EU approval for Portela — a similar long-acting therapy for feline OA pain — and its established monthly products Librela and Solensia, Zoetis is building a differentiated suite of dosing options that could drive improved adherence and recurring revenues. The successful rollout of Lenivia and Portela could help re-accelerate growth in 2026 and deepen the company’s presence across the canine and feline OA market.

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 ANI Pharmaceuticals ANIP, Beam Therapeutics BEAM and Amicus Therapeutics FOLD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $7.25 to $7.29 for 2025. During the same time, earnings per share estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 70.2%.

ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.

In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.36 to $4.23 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.41 to $4.21. Year to date, shares of BEAM have lost 2.2%.

Beam Therapeutics’ earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average negative surprise being 2.62%.

In the past 60 days, estimates for Amicus Therapeutics’ earnings per share have remained constant at 31 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 69 cents to 70 cents. Year to date, shares of FOLD have lost 5.9%.

Amicus Therapeutics’ earnings beat estimates in one of the trailing four quarters, missing the mark thrice, with the average negative surprise being 24.38%.

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This article originally published on Zacks Investment Research (zacks.com).

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