Zoetis IncZTS
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Zoetis cut full-year revenue and EPS guidance after flat Q2 revenue missed estimates.
Impact on stocks 1
Health Care
Zoetis IncZoetis lowered its full-year revenue and adjusted earnings guidance after reporting flat second-quarter revenue that missed Wall Street expectations. The company posted revenue of $2.47 billion, below analyst estimates of $2.50 billion, while adjusted earnings per share of $1.87 slightly beat the consensus of $1.85. Management reduced full-year revenue guidance to $9.22 billion at the midpoint from $9.82 billion, a 6.1% decrease, and lowered adjusted EPS guidance to $6.20 at the midpoint, a 10.5% decrease. CEO Kristin Peck attributed the weakness to intensifying competitive pressures in key Companion Animal categories and ongoing declines in U.S. veterinary clinic visits, noting that the company is emphasizing temporary, targeted gross-to-net investments rather than permanent list price changes to protect share. CFO Wetteny Joseph highlighted foreign exchange headwinds as another factor in the revised outlook, while Peck suggested competitive intensity may continue into 2027.
Zoetis IncZoetis cut full-year revenue and EPS guidance after flat Q2 revenue missed estimates.