Company Reports

With Elanco and Merck launching new products to compete with Zoetis' key dermatology portfolio and flagship parasiticide, Simparica Trio, Zoetis faces heightened competitive pressure in 2026 and 2027.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on the impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The pipeline contains several high-potential monoclonal antibodies to treat canine and feline kidney disease and two types of canine cancer.

Zoetis reported second-quarter results with flat top-line growth and earnings down 5% year over year, driven by an 11% decline in US companion animal revenue. Zoetis significantly reduced revenue guidance by 550 basis points at the midpoint and earnings per share by $0.82 at the midpoint.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on the impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Rival Elanco recently made impressive inroads with corporate clients that suggested stronger-than-expected conversion to its new products, which weighed on Zoetis' 4% operational decline in first-quarter companion animal revenue.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on the impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Zoetis reported first-quarter revenue of $2.26 billion and adjusted net income of $646 million, which translated into flat organic operational and 1% growth year over year, respectively. Management lowered its 2026 guidance and widened the range on revenue and earnings.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on the impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Zoetis posted fourth-quarter organic operational revenue growth of 4%, and full-year earnings growth of 7%. In 2025, organic operational companion animal and livestock revenue were up 5% and 8%, respectively.

In the third quarter, Zoetis reported top-line growth of 1% and net income growth of 6%. US Librela sales declined 26% year over year, driving the shares down 13% in Nov. 4 trading.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on the impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Zoetis reported second-quarter results that included reported revenue and earnings growth of 4% and 15%, respectively. Adjusted for the sale of the medicated feed additives and foreign currency, quarterly sales grew 8% year over year.

Zoetis delivered first-quarter adjusted top-line and bottom-line growth of 9% and 6%, respectively, as international revenue increased strongly at 11% year over year.

Zoetis delivered fourth-quarter results that were consistent with previous quarters, with 6% operational revenue growth and 8% sales growth from the companion animal segment.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on its impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Zoetis's third-quarter results rested on stellar growth of US companion animal revenue of 18%, coupled with international pet sales growth of 11% in constant currency.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on its impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on its impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

Zoetis posted a second-quarter performance that reflected ongoing strength in its companion-animal business. Though we’ve slightly adjusted our assumptions for the full year to reflect incrementally lower manufacturing, and sales and marketing expense, this wasn’t enough to materially move our fair value estimate. Another quarter of strength from Zoetis underscores the firm’s wide economic moat, in our view. The company’s novel companion-animal products have translated into robust adoption cycles that can be maintained over years. For example, its US dermatology franchise grew 17% in the quarter, though Apoquel and Cytopoint have been on the market since 2013 and 2016, respectively. Zoetis has deftly managed product life cycles with the introduction of chewable Apoquel last year, just ahead of the anticipated launch of Elanco’s competitive Zenrelia therapy in 2024. As it happens, Zenrelia is likely to be launched with a black box warning in late 2024, which, we think, should keep vets in the Apoquel camp.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on its impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.