Zoetis Inc.
Zoetis Inc. (ZTS) is a global leader in animal health, developing, manufacturing and commercialising medicines, vaccines and diagnostics for livestock and companion animals. With a market capitalisation of about $64.7bn, the company benefits from steady, recurring demand driven by pet ownership trends, livestock productivity needs and veterinary services growth across developed and emerging markets. Zoetis' strength lies in a diversified product portfolio, a broad geographic footprint and ongoing investment in R&D and targeted acquisitions to expand its pipeline. Investors should note potential advantages — predictable cash flows, margin resilience and dividend capacity — alongside risks such as regulatory scrutiny, pricing pressures, disease outbreaks and currency exposure. Zoetis may suit investors seeking exposure to defensive growth within healthcare, but it is important to assess valuation, portfolio fit and risk tolerance. This information is educational only and not personalised investment advice; values can rise or fall and past performance is not a guarantee of future returns.
Why It's Moving
Zoetis Slashes 2025 Sales Forecast on Softening Animal Medicine Demand, Triggering Sharp Stock Plunge
Zoetis reported third-quarter 2025 revenue of $2.4 billion, up 1% year-over-year, with organic growth at 4% and net income rising to $721 million. However, the company lowered its full-year sales outlook to $9.4-$9.475 billion due to weaker demand for pig and chicken vaccines and medicines, sending shares tumbling over 13%.
- Q3 revenue hit $2.4B (1% YoY growth, 4% organic), but slower livestock segment demand prompted the forecast cut, signaling broader pressures in animal health.
- Net income climbed to $721M ($1.63/share, up 9%), yet executives highlighted softening U.S. growth and pet/livestock medicine trends as key headwinds.
- Shares dropped more than 13% post-announcement, reflecting investor concerns over decelerating momentum after years of robust expansion.
Zoetis Slashes 2025 Sales Forecast on Softening Animal Medicine Demand, Triggering Sharp Stock Plunge
Zoetis reported third-quarter 2025 revenue of $2.4 billion, up 1% year-over-year, with organic growth at 4% and net income rising to $721 million. However, the company lowered its full-year sales outlook to $9.4-$9.475 billion due to weaker demand for pig and chicken vaccines and medicines, sending shares tumbling over 13%.
- Q3 revenue hit $2.4B (1% YoY growth, 4% organic), but slower livestock segment demand prompted the forecast cut, signaling broader pressures in animal health.
- Net income climbed to $721M ($1.63/share, up 9%), yet executives highlighted softening U.S. growth and pet/livestock medicine trends as key headwinds.
- Shares dropped more than 13% post-announcement, reflecting investor concerns over decelerating momentum after years of robust expansion.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying Zoetis' stock, which has significant potential to increase in value.
Financial Health
Zoetis is performing well with strong profits, cash flow, and revenue, reflecting healthy demand for its products.
Dividend
Zoetis Inc. offers a below average dividend yield of 1.49%, indicating limited income potential from dividends. If you invested $1000 you would be paid $14.90 a year in dividends (based on the last 12 months).
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Explore BasketWhy You’ll Want to Watch This Stock
Steady demand drivers
Rising pet ownership and livestock productivity needs can support predictable revenue, though sales can vary with animal health trends and outbreaks.
Global footprint
A wide geographic reach exposes Zoetis to growth in emerging markets, but also brings currency and regulatory risk across regions.
R&D and pipeline
Ongoing investment in R&D and selective acquisitions fuels future products, yet new launches carry execution and approval risks.
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