Zoetis Stock Gains After Q4 Earnings & Revenues Beat Estimates

Zoetis, Inc. ZTS delivered fourth-quarter 2025 adjusted earnings (excluding one-time items) of $1.48 per share, which surpassed the Zacks Consensus Estimate of $1.40. In the year-ago quarter, the company delivered adjusted earnings of $1.40 per share.

Total revenues grew 3% year over year to $2.39 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $2.37 billion. In the year-ago quarter, the company reported total revenues of $2.32 billion.

Shares of Zoetis are trading up during the pre-market hours today following the better-than-expected earnings results.

ZTS’ Q4 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 $1.24 billion in the reported quarter, missing the Zacks Consensus Estimate of $1.27 billion.

Sales of companion animal products in the U.S. region declined 1% year over year to $1 billion. Growth in Zoetis’ parasiticides portfolio, including Simparica and ProHeart franchises, 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.

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. In 2025, 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 6% in the fourth quarter to $234 million. The decline was mainly due to the divestiture of the medicated feed additive product portfolio and related assets.

Shares of Zoetis have lost 15.6% in the past six months compared with the industry’s 1.5% decline.

Revenues in the International segment increased 8% year over year on a reported basis and 5% on an operational basis to $1.12 billion, beating the Zacks Consensus Estimate of $1.06 billion.

Ex-U.S. sales of companion animal products rose 7% on a reported basis and 4% operationally to $599 million, driven by growth in several key products. These included Zoetis’ parasiticides portfolio, including Simparica Trio, as well as the diagnostics and its key dermatology products Apoquel and Cytopoint.

Livestock product sales increased 9% year over year on a reported basis and 7% operationally to $522 million, driven by broad-based growth across all core species, including cattle, fish and poultry.

ZTS’ Full-Year 2025 Results

Zoetis posted 2025 adjusted earnings of $6.41 per share (excluding one-time items), which increased from the year-ago figure of $5.92 and beat the Zacks Consensus Estimate of $6.34.

Total revenues grew 2% year over year to $9.47 billion, which beat the Zacks Consensus Estimate of $9.45 billion.

Zoetis Inc. Price, Consensus and EPS Surprise

Zoetis Inc. price-consensus-eps-surprise-chart | Zoetis Inc. Quote

ZTS’ 2025 Guidance

Zoetis issued guidance for 2026. It expects adjusted earnings in the range of $7.00-$7.10 per share in 2026.

Revenues are projected between $9.825 billion and $10.025 billion, representing an expected operational growth of 3-5%.

ZTS’ Key Updates

During the reported quarter, Zoetis secured the EU approval of Lenivia, its long-acting monoclonal antibody therapy for canine OA pain, 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.

The approval of Lenivia is expected to 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.

ZTS’ Zacks Rank and Stocks to Consider

Zoetis currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Exelixis EXEL, Alkermes ALKS and Castle Biosciences CSTL, 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 Exelixis’ 2026 earnings per share (EPS) have risen from $3.18 to $3.39. EXEL shares have surged 11.6% over the past six months.

Exelixis’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 24.95%.

Over the past 60 days, estimates for Alkermes’ 2026 EPS have increased from $1.54 to $1.91. ALKS shares have risen 21.8% over the past six months.

Alkermes’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average earnings surprise being 4.58%.

Over the past 60 days, estimates for Castle Biosciences’ 2026 loss per share have narrowed from $1.06 to 96 cents. CSTL shares have risen 66.5% over the past six months.

Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 66.11%.

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

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