# Zoetis Inc. (ZTS) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/ZTS/thesis · /stocks/ZTS/memo

## Financial Snapshot

---
ticker: ZTS
step: 04
generated: 2026-05-12
source: quick-research
---

### Zoetis Inc. (ZTS) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25v24) |
|--------|--------|--------|--------|--------|-------------|
| Revenue | $8.08B | $8.54B | $9.26B | $9.47B | +2.3% |
| Gross Margin | ~71% | ~71% | ~71% | ~71% | flat |
| Operating Margin (adj.) | ~37% | ~38% | ~39% | ~39% | flat |
| Net Income (GAAP) | $2.11B | $2.34B | $2.49B | $2.67B | +7.5% |
| EPS (diluted, GAAP) | $4.49 | $5.07 | $5.47 | $6.02 | +10.1% |

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$2.7B |
| Capex | ~$650M |
| Free Cash Flow | ~$2.0B |
| Cash & Investments | ~$2.0B |
| Total Debt | ~$6.5B |

#### Capital Return
- 12+ consecutive years of dividend increases since 2013 IPO
- Active share buyback program — typically $1–2B annually
- Capital priority: balanced between R&D reinvestment, dividend, buybacks

#### Key Ratios (approximate, May 2026)
- P/E (TTM, GAAP): ~19x | EV/EBITDA: ~14x | FCF Yield: ~4%
- Revenue Growth (TTM, organic operational): ~6% | Adj. Operating Margin: ~39%
- Stock price ~$116 — down ~30%+ from 52-week highs after Librela safety concerns + Q4 2025 weakness

#### Segment Mix (FY2024 — illustrative)
- Companion Animal: ~65% revenue, +14% operational growth
- Livestock: ~35% revenue, +5% operational growth
- US: ~55% revenue; International: ~45%

#### Top Franchises (illustrative)
- Simparica + Simparica Trio (parasiticides): $2B+ run-rate, growing 13–22%
- Apoquel + Cytopoint (dermatology): >$2B combined, but Q1 2026 -11% YoY under competition
- Librela + Solensia (pain mAbs): >$1B combined, growth tempered by safety concerns
- Vaccines: Vanguard, Felocell, Suvaxyn families
- Diagnostics: Vetscan platform expanding into AI cytology

#### Growth Profile
Zoetis is in a transition year. FY2025 organic operational growth slowed to mid-single-digits (vs. high-single / low-double historically) due to:
- Consumer-spending pullback on routine pet wellness (Gen Z/Millennial owners reducing vet visits in response to clinic price increases)
- Librela neurological safety signals leading to FDA "Dear Veterinarian" letter and label updates
- Emerging Apoquel competition from Elanco / Boehringer JAK alternatives
- Q1 2026 US revenue -8% to $1.09B

Underlying long-term thesis remains intact: only 1/3 of US dogs treated for parasites, only 12M of 32M itchy dogs use Zoetis dermatology products, and the renal mAb franchise targeting $3–4B TAM is in development for 2027 launch.

#### Forward Estimates
**2026 guidance:** Revenue $9.825–10.025B (+5% midpoint); GAAP diluted EPS $6.65–6.75; adjusted EPS $7.00–7.10. Below the company's historical 7–10% organic growth pattern, reflecting expected continued dermatology competition + cautious Librela ramp. Consensus 12-month price target ~$151 implies 30%+ upside. Bull-side scenarios pencil in successful Librela safety stabilization + 2027 renal mAb launch, returning growth to high-single / low-double-digits by 2027. Bear-side scenarios extend the consumer slowdown and dermatology share loss into 2027 with continued multiple compression.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/ZTS/fundamental

## Navigation

- Overview: /stocks/ZTS
- Financials (this page): /stocks/ZTS/financials
- Thesis: /stocks/ZTS/thesis
- Investment Memo: /stocks/ZTS/memo
- Coverage universe: /stocks