Zoetis (ZTS)
NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-04
$75.81-0.63%
Close 2026-09-04 · 1-day change
NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-09-04
QuarterlyIQ Insights · ZTS
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within health care on a research-validated quality screen. As of 2026-09-04.
The screen ranks ZTS against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Health Care names rated strong grew net income 53% of the time over the next year (vs 41% for the rest of the cohort, n=9986).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Advance innovation pipeline with significant approvals annually, expand product launches including monoclonal antibodies for OA pain and parasiticides globally.
Stated as a priority in 6 of last 6 quarters. Zoetis consistently emphasized advancing its innovation pipeline with more than 12 potential blockbuster candidates, including significant approvals such as Lenivia and Portela for OA pain providing up to three months relief. The company reported revenue growth in international segments and continued product launches, reflecting delivery aligned with management's stated innovation-driven growth priority.
“We are acting with urgency and remain confident in the long-term fundamentals... advancing a robust pipeline with more than 12 potential blockbusters.”
“We are taking decisive action to sharpen commercial execution, unlock revenue and continue to drive disciplined cost management... robust pipeline with more than 12 potential blockbusters.”
“Advancing our innovative pipeline is central to our strategy, and we achieved key milestones in 2025 including first regulatory approvals for long-acting OA pain products Lenivia and Portela.”
“We achieved significant regulatory milestones, including major new product approvals, geographic expansions and differentiating lifecycle innovations.”
“Zoetis continues to advance care for animals globally with a robust pipeline fueled by lifecycle innovation, geographic expansion and disruptive innovation.”
“Zoetis continues to advance innovation and care for animals across the globe with product approvals in new markets and additional claim extensions.”
Grow international sales through geographic expansion, new product launches, and operational improvements in companion animal and livestock segments.
Stated as a priority in 6 of last 6 quarters. International segment revenue grew from approximately $1.0 billion in 2025-Q1 to $1.2 billion in 2026-Q2, reflecting consistent growth in companion animal and livestock products internationally. This trajectory matches management's emphasis on expanding international revenue through geographic and product expansion.
“Revenue in the International segment was $1.2 billion, increasing 8% on a reported basis and 6% on an organic operational basis.”
Continue disciplined cost control including SG&A and R&D expense management to support profitability amid market challenges.
Stated as a priority in 6 of last 6 quarters. Management emphasized disciplined cost management while financials show SG&A expenses decreased from $614M in 2025-Q4 to $592M in 2026-Q2 (-4%), and R&D expenses increased modestly from $166M to $173M (+4%). This reflects a balanced approach to cost discipline and investment, consistent with management's stated priority.
“We are adapting our commercial strategy... deploying targeted investments, accelerating innovation, and pursuing business development.”
Achieve full year 2026 revenue between $9.12B and $9.32B, reflecting organic operational growth of -3% to -1%.
Newly stated in 2026-Q2. Management revised full year 2026 revenue guidance downward to $9.12-$9.32 billion, reflecting organic operational revenue decline of 3% to 1%. This contrasts with prior 2026-Q1 guidance of $9.68-$9.96 billion and 2%-5% growth, indicating a downward revision consistent with recent revenue trends.
“Revises Full Year 2026 Revenue Guidance to $9.120 - $9.320 Billion to Organic Operational Revenue Growth of (3)% to (1)%.”
Deliver adjusted diluted EPS for 2026 in the range of $6.15 to $6.25, revised down from prior guidance.
Newly stated in 2026-Q2. Management revised adjusted diluted EPS guidance downward to $6.15-$6.25 from prior $6.85-$7.00 guidance in 2026-Q1. This reflects a more cautious outlook consistent with the downward revision in revenue guidance and recent earnings performance.
“Revises Guidance for Adjusted Diluted EPS to $6.15 to $6.25.”
Over the trailing year it converted 1.05x of net income into operating cash flow. Historically, Health Care names rated neutral grew net income 54% of the time over the next year (vs 43% for the rest of the cohort, n=3313).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
19 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Health Care names rated neutral grew net income 53% of the time over the next year (vs 49% for the rest of the cohort, n=5275).
Not investment advice. As of 2026-09-04.
“International segment revenue was $1.1 billion, a 17% increase on a reported basis and 10% on an organic operational basis.”
“International segment revenue was $1.1 billion, an increase of 8% on a reported basis and 7% on an organic operational basis.”
“International segment revenue was $1.1 billion, a 3% increase on a reported basis and 6% on an organic operational basis.”
“International segment revenue was $1.1 billion, a 3% increase on a reported basis and 9% on an organic operational basis.”
“International segment revenue was $1.0 billion, flat on a reported basis and an increase of 11% on an organic operational basis.”
“We are taking decisive action to sharpen commercial execution, unlock revenue and continue to drive disciplined cost management.”
“Our disciplined execution positions us well as we move into 2026 and lay the groundwork for the next phase of our innovation cycle.”
“We achieved significant regulatory milestones... with continued discipline in execution and cost management.”
“Our focus remains clear: execute with discipline, advance meaningful innovation and stay deeply connected to our customers.”
“We remain agile, disciplined and focused on supporting our customers and the animals in their care while continuing our commitment to deliver value.”
“Revises Full Year 2026 Revenue Guidance to $9.680 - $9.960 Billion with Organic Operational Revenue Growth of 2% to 5%.”
“Revises Guidance for Diluted EPS on an Adjusted Basis to $6.85 to $7.00.”