Zoetis (ZTS)
NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-07-07
$76.29+1.15%
Close 2026-07-07 · 1-day change
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Track ZTS free→Zoetis leads in pet and livestock medicine with steady revenue growth. International sales rose 17%, showing strong global demand. The company targets about $9.82 billion revenue and $6.92 EPS in 2026. It maintains a cheap valuation with a PE of 11.8 versus peers at 25.
Revenue growth is slowing with only 3% recent increase. Cost control is weak as operating income fell from $798M to $758M. Guidance was cut and analysts expect challenges ahead. Competitive pressures and delayed product stabilization risk future earnings.
The stock trades about 20% below our fair value near $96, reflecting cautious views. Analysts expect roughly 4.5% revenue growth, which aligns with our moderate outlook. The market prices in some near-term weakness but not a severe downturn.
Breaks if: operating income declines below $700 million quarterly
Continue to drive disciplined cost management to improve profitability.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 2 of last 2 quarters. Operating income decreased from $798 million in 2025-Q4 to $758 million in 2026-Q1, indicating limited progress in cost management. Despite the focus on cost discipline, profitability has not improved as expected.
“CEO: '...continue to drive disciplined cost management.'”
“CEO: '...focus on cost management to improve margins.'”
Breaks if: EPS falls below $6.5
Breaks if: international revenue growth falls below 10% YoY
Increase revenue in the international segment through strategic initiatives and market expansion.
Stated in 2 of last 2 quarters. International segment revenue increased 17% on a reported basis in 2026-Q1, showing strong growth. The company is delivering on its priority to expand international revenue, with significant progress in this segment.
“International segment revenue increased 17% on a reported basis...”
“International segment revenue grew 15% on a reported basis...”
Breaks if: annual revenue falls below $9.4 billion
Focus on expanding the product portfolio with new approvals to drive revenue growth.
Stated in 3 of last 3 quarters. Revenue grew 3% from $2.198 billion in 2025-Q1 to $2.262 billion in 2026-Q1. The company continues to focus on product approvals to drive growth, but the trajectory shows limited progress with only modest revenue increase.
“CEO: 'We are well positioned to deliver our next wave of innovation...'”
“CEO: 'Our pipeline has more than 12 potential blockbuster candidates...'”
“CEO: 'We continue to drive innovation by advancing lifecycle innovation...'”