Financial Data and Key Metrics Changes - For the full year 2025, the company reported global revenue of $9.5 billion, growing 2% on a reported basis and 6% on an organic operational basis, with 4% from price and 2% from volume [21][22] - Adjusted net income grew 6% on a reported basis and 7% on an organic operational basis to $2.8 billion [21][22] - Full year adjusted gross margin of 71.9% grew 120 basis points on a reported basis, with foreign exchange having a favorable impact of 80 basis points [39] Business Line Data and Key Metrics Changes - The companion animal portfolio grew 5% operationally in 2025, with the Simparica franchise reporting $1.5 billion in revenue, growing 12% operationally [22][24] - The livestock portfolio achieved $2.8 billion in revenue, reflecting 8% organic operational growth, driven by broad-based growth across geographies and species [24][30] - Companion animal diagnostics delivered 13% operational revenue growth for the year, supported by the launch of new products [16][23] Market Data and Key Metrics Changes - International markets contributed significantly, with 8% organic operational revenue growth, while the U.S. delivered 4% organic operational growth [7][21] - The international companion animal business grew 7% operationally, driven by the Simparica and key dermatology franchises [28][30] - Livestock performance was particularly strong in the Brazilian cattle market, with broad-based growth across all core species [30][37] Company Strategy and Development Direction - The company is focused on advancing long-acting approvals and maintaining a robust pipeline to extend growth opportunities [8][19] - Strategic actions are being taken to sustain growth through competition, including optimizing channel mix and reinforcing scientific leadership [9][10] - The company aims to leverage its diverse portfolio and innovative capabilities to drive long-term growth and value creation [20][46] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are economic pressures affecting pet owners, demand for animal health services remains strong [10][71] - The company expects gradual improvement in the macro environment as it moves through 2026, with guidance for 2026 set at 3%-5% organic operational revenue growth [18][42] - Management remains confident in the long-term fundamentals of the livestock market, driven by increasing protein consumption and favorable producer economics [18][30] Other Important Information - The company completed a convertible bond offering to support a $1.75 billion common stock buyback while maintaining a strong balance sheet [42] - A multi-year initiative to transition the ERP system is underway, aimed at enhancing operational efficiency and insight [38] Q&A Session Summary Question: Competition and Pricing Dynamics for 2026 - Management acknowledged the competitive landscape and the impact of new product launches on growth, particularly in the dermatology space [50][51] - Price increases are expected to return to a normal range of 2%-3%, with volume contributing to growth as well [52] Question: U.S. Companion Animal Operational Growth - Management indicated that the guidance incorporates current market conditions and the strength of the company's portfolio, despite competitive pressures [55][56] - The demand for animal health remains resilient, with consumers prioritizing spending on their pets [56][71] Question: Dynamics of Simparica Franchise Growth - The Simparica franchise continues to lead in the U.S. market, with significant room for expansion despite recent lower growth rates [62] - Management emphasized the importance of maintaining a strong market position and adapting to competitive pressures [62] Question: Revenue Recognition and Accounting Dynamics - Management clarified that operational changes have led to some revenue recognition shifts, which are factored into the guidance for 2026 [61][63] - The one-month lag in revenue recognition will be addressed with the implementation of fiscal year alignment in early 2026 [61][63]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported global revenue of $9.5 billion, growing 2% on a reported basis and 6% on an organic operational basis, with 4% from price and 2% from volume [20][21] - Adjusted net income grew 6% on a reported basis and 7% on an organic operational basis to $2.8 billion [20][21] - Full year adjusted gross margin of 71.9% grew 120 basis points on a reported basis, with foreign exchange having a favorable impact of 80 basis points [40] Business Line Data and Key Metrics Changes - The companion animal portfolio grew 5% operationally in 2025, with the Simparica franchise reporting $1.5 billion in revenue, growing 12% operationally [21][22] - The livestock portfolio delivered 8% organic operational revenue growth for the year, with $2.8 billion in revenue [24][30] - Companion animal diagnostics delivered broad-based 13% operational revenue growth for the year [14][23] Market Data and Key Metrics Changes - International markets contributed significantly, with 8% organic operational revenue growth, while the U.S. delivered 4% organic operational growth [5][20] - International companion animal grew 7% operationally, driven by the Simparica and key dermatology franchises [27] - International livestock grew 10% on an organic operational basis, with strong performance in the Brazilian cattle market [30] Company Strategy and Development Direction - The company is focused on advancing long-acting approvals and maintaining a robust pipeline to extend growth [6][18] - Strategic actions are being taken to sustain growth through competition, including optimizing channel mix and increasing reach with veterinarians [8][19] - The company aims to leverage its diverse portfolio and robust pipeline, with 12 potential blockbusters in development [18][19] Management Comments on Operating Environment and Future Outlook - Management noted that the operating environment is dynamic, with macroeconomic pressures affecting consumer behavior, particularly among Gen Z and millennial pet owners [6][9] - Despite near-term headwinds, management remains confident in the long-term fundamentals of the animal health market, expecting gradual improvement in 2026 [9][17] - Guidance for 2026 includes organic operational revenue growth of 3%-5% and adjusted net income growth of 3%-6% [42][43] Other Important Information - The company is transitioning its ERP system to enhance operational efficiency and align fiscal years globally [39][40] - A convertible bond offering supported a $1.75 billion common stock buyback, returning over $3.2 billion to shareholders through buybacks and dividends [42] Q&A Session Summary Question: Competition and Pricing Strategy for 2026 - Management acknowledged the competitive landscape and the impact of new product launches on growth, particularly in the dermatology space [48][50] - Price increases are expected to return to a normal range of 2%-3%, with volume contributing to growth as well [52] Question: U.S. Companion Animal Operational Growth - Management indicated that the guidance incorporates current market conditions and the strength of their portfolio, despite competitive pressures [56][57] Question: Dynamics of Simparica Trio Growth - Management highlighted that Simparica Trio remains a leading product with significant room for expansion, despite recent lower growth [61][63]

分组1 - Zoetis reported quarterly earnings of $1.48 per share, exceeding the Zacks Consensus Estimate of $1.4 per share, and showing an increase from $1.4 per share a year ago, resulting in an earnings surprise of +5.85% [1] - The company achieved revenues of $2.39 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.92% and increasing from $2.32 billion year-over-year [2] - Zoetis has outperformed the S&P 500, with shares increasing by about 2.3% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.59 on revenues of $2.34 billion, and for the current fiscal year, it is $6.80 on revenues of $9.94 billion [7] - The Zacks Industry Rank indicates that the Medical - Drugs sector is in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8]

Core Viewpoint - Zoetis forecasts strong adjusted profit and revenue for 2026, driven by steady demand in its companion-animal portfolio and resilient international markets, despite softer trends in the U.S. [1] Financial Performance - Zoetis expects adjusted earnings of $7.00 to $7.10 per share for 2026, exceeding analysts' estimate of $6.80 [1] - Projected revenue for 2026 is between $9.83 billion and $10.03 billion, with the midpoint surpassing estimates of $9.91 billion [1] - The company's adjusted profit per share for the recent quarter was $1.48, above estimates of $1.40 [1] - Revenue for the recent quarter rose 3% to $2.39 billion, exceeding estimates of $2.36 billion [1] Segment Performance - Revenue from the companion-animal segment increased by 2% to $1.60 billion [1] - Livestock revenue rose by 4% to $756 million [1] Market Reaction - Shares of Zoetis rose by 4.4% in premarket trading following the forecast announcement [1] - Analyst Chris Schott from J.P. Morgan noted that investor expectations were low prior to the update due to competition concerns, and the forecast should alleviate some of these worries [1]

Fourth Quarter and Full Year 2025 Financial Results February 12, 2026 Forward-Looking Statements This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance; future guidance, future operating models, R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; expectations regardi ...

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Financial Performance - The company reported Q4 2025 revenue of $2.4 billion, a 3% increase from Q4 2024, with 4% organic operational growth[3]. - Net income for Q4 2025 was $603 million, or $1.37 per diluted share, reflecting increases of 4% and 6% respectively on a reported basis[4]. - For the full year 2025, revenue was $9.5 billion, up 2% from 2024, with 6% organic operational growth[5]. - Full year 2025 net income was $2.7 billion, or $6.02 per diluted share, representing increases of 8% and 10% respectively on a reported basis[6]. - Adjusted net income for full year 2025 was $2.8 billion, or $6.41 per diluted share, with 7% organic operational growth[6]. - Total revenue for the full year 2025 reached $9,467 million, reflecting a 2% growth from $9,256 million in 2024[28]. - For the twelve months ended December 31, 2025, net income attributable to Zoetis was $2,847 million, an increase of 6% from $2,693 million in 2024[35]. - Diluted earnings per share for 2025 was $6.41, up from $5.92 in 2024, reflecting a 8.3% increase[35]. - Adjusted net income for the twelve months ended December 31, 2025, was $2,847 million, a 6% increase compared to $2,693 million in 2024[45]. Revenue Breakdown - U.S. segment revenue for Q4 2025 was $1.2 billion, a 2% decrease on a reported basis, while International segment revenue was $1.1 billion, an 8% increase[8][9]. - Companion Animal revenue for the twelve months ended December 31, 2025, was $6,587 million, a 5% increase from $6,278 million in 2024[56]. - Livestock revenue for the twelve months ended December 31, 2025, decreased by 5% to $2,764 million compared to $2,898 million in 2024[56]. - Contract Manufacturing & Human Health revenue increased by 45% to $116 million for the twelve months ended December 31, 2025[56]. - Total international revenue for 2025 reached $4,254 million, a 4% increase from $4,102 million in 2024, with operational revenue growth of 5%[59]. Guidance and Future Outlook - The company provided full year 2026 revenue guidance of $9.825 - $10.025 billion, expecting 3% to 5% organic operational growth[4]. - Zoetis plans to continue its focus on innovation and market expansion in 2026, with guidance indicating potential growth in key product areas[47]. - Revenue guidance for full year 2026 is projected to be between $9,825 million and $10,025 million, reflecting organic operational growth of 3% to 5%[48]. - Adjusted diluted EPS is expected to be between $7.00 and $7.10, with adjusted net income projected at $2,975 million to $3,025 million[48]. Expenses and Profitability - Research and development expenses for Q4 2025 were $199 million, a 7% increase from $186 million in Q4 2024[28]. - Selling, general and administrative expenses decreased by 1% to $619 million in Q4 2025 from $625 million in Q4 2024[28]. - The gross profit for Q4 2025 was $1,675 million, with a gross margin of approximately 70.1%[31]. - Non-GAAP adjusted net income for Q4 2025 was $648 million, compared to $632 million in Q4 2024, representing a 3% increase[31]. - The company reported a provision for taxes on income of $158 million for Q4 2025, a 5% increase from $151 million in Q4 2024[28]. - Interest expense for Q4 2025 was $57 million, a 12% increase from $51 million in Q4 2024[28]. - Adjusted cost of sales for 2025 was $2,657 million, a decrease of 2% from $2,714 million in 2024[45]. - Selling, general and administrative expenses for 2025 were $2,344 million, a 2% increase from $2,301 million in 2024[45]. - Research and development expenses for 2025 were $696 million, a 2% increase from $684 million in 2024[45]. - The adjusted SG&A expenses as a percentage of revenue decreased from 30.5% in 2024 to 29.7% in 2025[45]. - The company reported a gross profit margin of 71.9% for 2025, compared to 71.1% in 2024[35]. Acquisitions and Milestones - The company achieved key milestones in 2025, including regulatory approvals for long-acting OA pain products Lenivia and Portela[7]. - Zoetis acquired Veterinary Pathology Group (VPG) to enhance its diagnostic capabilities and expand its diagnostics portfolio[14]. - The company expects to receive significant approvals in major markets annually for the next several years, with 12 pipeline candidates having blockbuster potential[13].

PARSIPPANY, N.J.--(BUSINESS WIRE)---- $ZTS #animalhealth--Zoetis Inc. (NYSE: ZTS), the world's leading animal health company, today reported its financial results for the fourth quarter and full year 2025 and provided full year guidance for 2026. The company reported revenue of $2.4 billion for the fourth quarter of 2025, an increase of 3% compared with the fourth quarter of 2024. On an organic operational1 basis, revenue for the fourth quarter of 2025 increased 4% compared with the fourth quarter of 2024. ...

Zoetis Inc. (NYSE:ZTS) will release earnings for its fourth quarter before the opening bell on Thursday, Feb. 12.Analysts expect the Parsippany, New Jersey-based company to report quarterly earnings at $1.4 per share, compared to $1.4 per share in the year-ago period. The consensus estimate for Zoetis quarterly revenue is $2.36 billion (it reported $2.32 billion last year), according to Benzinga Pro.On Dec. 16, Zoetis announced pricing of $1.75 billion convertible senior notes offering.Shares of Zoetis rose ...

Core Viewpoint - Zoetis Inc. is expected to report stable earnings and revenue for its fourth quarter, with analysts projecting earnings per share to remain at $1.4 and revenue to increase slightly to $2.36 billion from $2.32 billion in the previous year [1][2]. Financial Performance - The anticipated earnings per share for Zoetis in the fourth quarter is $1.4, consistent with the same period last year [1]. - The consensus estimate for quarterly revenue is $2.36 billion, reflecting a growth from $2.32 billion reported in the previous year [1]. Recent Developments - On December 16, Zoetis announced the pricing of a $1.75 billion convertible senior notes offering, indicating a significant capital-raising effort [1]. - Shares of Zoetis rose by 0.4%, closing at $128.67 on Wednesday, suggesting a positive market response [2].