Core Viewpoint - Zoetis has significantly reduced its full-year financial outlook, indicating challenges in the market and potential impacts on future performance [1] Financial Performance - The company has adjusted its revenue forecast, now expecting between $7.45 billion and $7.55 billion, down from a previous estimate of $7.55 billion to $7.65 billion [1] - Zoetis anticipates adjusted earnings per share (EPS) in the range of $3.05 to $3.15, a decrease from the earlier guidance of $3.15 to $3.25 [1] Market Challenges - The revision in outlook is attributed to various market pressures, including changes in demand and pricing dynamics within the veterinary pharmaceutical sector [1] - The company is facing increased competition and pricing pressures that are affecting its sales growth [1]

Financial Performance - Zoetis' Q3 revenue reached $24 billion, with organic operational growth of 4%[12] - Adjusted net income was $754 million, reflecting a 9% organic operational increase[12] - Adjusted diluted EPS stood at $170, demonstrating a 12% organic operational rise[12] Segment Highlights - The U S segment revenue totaled $13 billion, with 3% organic operational growth[24] - U S companion animal revenue remained flat at $11 billion[24] - U S livestock revenue saw a 14% organic operational increase, reaching $03 billion[24] - International segment revenue amounted to $11 billion, showing 6% organic operational growth[24] - International companion animal revenue grew 4% to $06 billion[24] - International livestock revenue increased by 8% to $05 billion[24] Updated Outlook - Zoetis revised its full-year 2025 organic operational revenue growth to 55%-65%[13] - The company maintained its adjusted diluted EPS guidance at $630-$640[13]

EXHIBIT 99.1 Zoetis Announces Third Quarter 2025 Results PARSIPPANY, N.J. – November 4, 2025 – Zoetis Inc. (NYSE:ZTS) today reported its financial results for the third quarter of 2025. The company reported revenue of $2.4 billion for the third quarter of 2025, an increase of 1% compared with the third quarter of 2024. On an organic operational basis, revenue for the third quarter of 2025 increased 4% compared with the third quarter of 2024. Net income for the third quarter of 2025 was $721 million, or $1.6 ...

Core Insights - Zoetis Inc. is a leading global animal health company set to release its Q3 2025 earnings on November 4, 2025, with Wall Street anticipating EPS of $1.62 and revenue of approximately $2.41 billion [1][2] Financial Performance - The company is expected to surpass earnings estimates due to strong demand for companion animal products like Simparica Trio and Apoquel, indicating robust performance in this segment [2][6] - A year-over-year increase in earnings is projected, attributed to higher revenues for the quarter ending September 2025, which could positively impact stock price [3][6] Financial Metrics - Zoetis has a price-to-earnings (P/E) ratio of 24.60, indicating investors are willing to pay $24.60 for every dollar of earnings [4][6] - The price-to-sales ratio is 6.82, and the enterprise value to sales ratio is 7.39, reflecting the market's valuation of its revenue and sales [4] - The company maintains a debt-to-equity ratio of 1.36, suggesting a balanced use of debt and equity in financing, and a current ratio of 1.76 indicates it can comfortably cover short-term liabilities [5][6] - An earnings yield of 4.07% showcases the company's profitability based on earnings [5]

Core Viewpoint - Zoetis Inc. announces the retirement of Dr. Rob Polzer at the end of 2025 and the appointment of Dr. Kevin Esch as the new President of Research & Development starting January 1, 2026, highlighting a planned succession to maintain momentum in innovation within the animal health sector [1][2][3]. Leadership Transition - Dr. Rob Polzer will retire on February 28, 2026, after a decade of contributions to veterinary medicine and innovation, and will serve as a scientific advisor through 2026 to ensure a smooth transition [1][3]. - Dr. Kevin Esch, currently Senior Vice President of Global Therapeutics, will take over the role, bringing over 10 years of experience as a veterinarian and a strong background in research and development [2][7]. Innovation and Growth Strategy - Zoetis is committed to advancing animal care globally through a robust innovation pipeline, with expectations for significant product approvals in major markets annually for the next several years [4]. - The company has introduced 17 blockbuster products and over 2,000 new products and lifecycle innovations in the past 12 years, investing more in R&D than any other animal health company [4]. Upcoming Events - An Innovation Webcast is scheduled for December 2, 2025, to update investors and the public on Zoetis' innovative pipeline and strategic approach to addressing unmet needs in the industry [5]. Contributions of Dr. Rob Polzer - Under Dr. Polzer's leadership, Zoetis has launched several groundbreaking products and established new markets, significantly transforming standards of care in animal health [10][11]. - His tenure has been marked by a focus on scientific rigor and collaboration, leading to advancements in therapies, vaccines, and digital solutions [10][11]. Background of Dr. Kevin Esch - Dr. Esch has held various influential roles within Zoetis since joining in 2014, overseeing global research and development efforts and managing key acquisitions [7][8]. - His educational background includes a Doctor of Veterinary Medicine, a Master of Public Health, and a Ph.D. in Immunobiology, reflecting a strong commitment to veterinary medicine [8][9].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - October was a challenging month for stock selection, with the 15 selected stocks experiencing an average decline of 0.41% in value [1]. Group 1 - The SPDR S&P 500 Trust ETF was referenced, indicating a broader market context for the stock performance [1]. - The analyst has over 10 years of experience in the investment field, starting as an analyst and advancing to a management role [1]. - Dividend investing is highlighted as a personal interest of the analyst, suggesting a focus on income-generating investments [1].

Core Insights - Zoetis (ZTS) stock is noteworthy due to its high margins, indicating strong pricing power and cash generation capabilities, currently available at a discounted price [2][3] Financial Performance - Revenue growth for Zoetis was 5.3% over the last twelve months and averaged 5.5% over the past three years, indicating stable but not rapid growth [8] - The company reported an operating cash flow margin of approximately 31.2% and an operating margin of 37.5% for the last twelve months [8] - Long-term profitability metrics show an operating cash flow margin of about 28.7% and an average operating margin of 36.6% over the past three years [8] - ZTS stock is currently trading at a price-to-sales multiple of 6.8, reflecting a 24% discount compared to one year ago [8] Market Position - Zoetis provides a range of medicines, vaccines, and diagnostic products for animal health, targeting various livestock species to prevent diseases affecting respiratory, gastrointestinal, and reproductive systems [4]

Core Insights - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] - The fund initiated four new positions in Q3, including Zoetis Inc., indicating a belief in the long-term growth potential of certain companies despite market trends [3] Company Overview: Zoetis Inc. (NYSE: ZTS) - Zoetis Inc. specializes in animal health medications, vaccines, and diagnostic products, with a market capitalization of $63.792 billion as of October 29, 2025 [2] - The stock experienced a one-month return of -1.74% and a 52-week decline of 19.49% [2] - In Q2 2025, Zoetis reported $2.5 billion in revenue, reflecting a 4% growth on a reported basis and 8% on an organic operational basis [4] Investment Sentiment - Despite the overall market rally, the fund believes that Zoetis's stock price does not reflect its long-term growth outlook [3] - Zoetis is not among the top 30 most popular stocks among hedge funds, with 75 hedge fund portfolios holding its shares at the end of Q2 2025, a slight increase from 74 in the previous quarter [4] - The fund suggests that while Zoetis has investment potential, certain AI stocks may offer greater upside with less downside risk [4]

Core Insights - Zoetis, Inc. (ZTS) is anticipated to exceed expectations in its third-quarter 2025 earnings report, scheduled for November 4, 2025, with revenue estimates at $2.41 billion and earnings per share (EPS) at $1.62 [1][5] Group 1: Revenue Sources - The company generates most of its revenue from a diverse portfolio of veterinary medicines and vaccines for livestock and companion animals, with additional income from non-pharmaceutical categories such as nutritional products and precision animal health services [2] - Revenue from the U.S. segment is projected to increase, primarily due to rising sales of companion animal products, with estimates at $1.34 billion according to Zacks Consensus and $1.38 billion based on internal models [3] - The International segment is also expected to see revenue growth, driven by higher sales of companion animal products, with estimates of $1.04 billion from Zacks and $1.03 billion from internal models [4] Group 2: Product Performance - Companion animal products, particularly Simparica Trio, Apoquel, and Cytopoint, are expected to significantly contribute to revenue growth in both U.S. and International segments [5][7] - However, sales of monoclonal antibody products for osteoarthritis, Librela and Solensia, are likely to decline in the U.S. due to concerns over side effects [8] - The FDA's recent approval of a new indication for Simparica Trio is expected to further enhance sales by preventing flea tapeworm infections [9] Group 3: Livestock Products - Livestock product sales in both U.S. and International segments are anticipated to decline due to the divestiture of certain product lines, including medicated feed additives and water-soluble products [10] Group 4: Earnings Surprise History - Zoetis has a strong earnings surprise history, having surpassed estimates in the last four quarters with an average surprise of 6.19%, including an 8.64% surprise in the most recent quarter [11][12] Group 5: Earnings Prediction - The company's earnings model indicates a likely earnings beat, supported by a positive Earnings ESP of +0.32% and a Zacks Rank of 3 [13]