| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | 13.3x | 17.3x | Top tier | |
Growth | 47 | 1.5% | 7.1% | Around median | |
Quality | 91 | 23.7% | 4.5% | Top tier | |
Safety | 68 | 1.9x | 2.6x | Top tier | |
Capital Return | 83 | 2.49% | 0.06% | Top tier | |
Momentum | 13 | -52.2% | -1.6% | Bottom tier | |
Sentiment | 75 | 13 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
24% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Zoetis Inc. is an animal health company that generates revenue from medicines, vaccines, parasiticides, dermatology and osteoarthritis pain treatments, as well as veterinary diagnostic tools and services. Its portfolio serves the companion animal and livestock markets; in Q2 FY2026, global companion animals accounted for approximately $1.7 billion in revenue, while livestock generated $731 million, making the former the largest revenue source and the latter the fastest-growing diversification component in that quarter.
Q2 FY2026 revenue was approximately $2.5 billion, flat on a reported basis and down 1% operationally on an organic basis, with volume down 1% and the price impact roughly flat. Adjusted net income was $781 million, down 2% operationally on an organic basis, while adjusted diluted earnings per share rose 4% to $1.87, benefiting from a lower share count following share repurchases of more than $550 million. Adjusted gross margin was 72.9%, down approximately 40 basis points on a reported basis; foreign exchange had a negative impact of approximately 50 basis points, while the margin improved by approximately 10 basis points excluding it.
The Q2 FY2026 mix revealed a sharp disparity across businesses and regions: global companion animals declined 6% to $1.7 billion, including a 16% decline in key dermatology products to $395 million, versus 11% growth in livestock to $731 million and 12% growth in diagnostics to $118 million. U.S. revenue declined 7% to $1.3 billion, while international revenue rose 6% to $1.2 billion. For comparison, EDGAR filings for FY2025 show revenue of $9.5 billion, gross profit of $6.8 billion, and net income of $2.7 billion.
In Q1 FY2026, EDGAR filings showed revenue of $2.3 billion, gross profit of $1.6 billion, net income of $601 million, and earnings per share of $1.42. The trailing twelve-month period for 2026 recorded revenue of $9.5 billion, gross profit of $6.8 billion, net income of $2.6 billion, and earnings per share of approximately $6.26. Flat revenue compared with FY2025, alongside a roughly $100 million decline in net income, points to profit pressure despite resilient overall sales.
The analyst consensus on ZTS is "Neutral," with an average target of $87.33 and a range of $80 to $95, a spread that reflects tangible uncertainty following the reduction in the FY2026 outlook. The average target is slightly above the lower end of the 52-week range of $71, but approximately 44% below the high of $156.49, while the highest target itself is approximately 39% below that high; this decline in the valuation anchor reflects repricing associated with the contraction in U.S. companion animals, share losses in dermatology, and the expected decline in adjusted earnings. The data did not include a usable price-to-earnings ratio, so the stock cannot be assessed on the basis of this multiple without adding an unsupported assumption.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Zoetis lowered its outlook on August 6, 2026, after Q2 FY2026 results came in below its expectations, with operational organic revenue down 1% and adjusted net income down 2% operationally on an organic basis. Management attributed the pressure to declining clinic visits, increased price sensitivity among pet owners, and greater promotional activity in U.S. dermatology and parasiticides. The revenue outlook became $9.12 billion to $9.32 billion, and the adjusted net income outlook became $2.57 billion to $2.62 billion. This is equivalent to an operational organic decline of between 3% and 1% in revenue and between 9% and 5% in adjusted net income.
Key dermatology revenue declined 16% to $395 million in Q2 FY2026, while it declined 18% to $251 million in the United States. Clinic visits related to itching in dogs fell by more than 2%, coinciding with the entry of competitors using discounts, rebates, and product bundling. Zoetis's share within U.S. clinics remained high at approximately 86%, but it fell five points sequentially and ten points year over year. The company responded with targeted investments in net price and promotions to support Apoquel and Cytopoint and protect volume and share.
Automated analysis for informational purposes only — not investment advice.
They provided a clear partial offset in Q2 FY2026, with livestock growing 11% to $731 million and diagnostics growing 12% to $118 million. U.S. livestock benefited from demand for Dectomax associated with the New World screwworm and from strength in cattle and poultry, rising 23% to $222 million. Vetscan Imagyst and Vetscan OptiCell supported diagnostics growth, while the acquisition of VitalRADS added remote veterinary radiograph interpretation capabilities. However, companion animal revenue of $1.7 billion remained much larger, so growth in the two businesses did not prevent the company's operational organic revenue from declining 1%.
The Simparica family recorded global revenue of $442 million and was flat year over year, with Simparica Trio down 1% to $350 million and Simparica up 4% to $91 million. In the United States, the family declined 6% to $308 million, while internationally it rose 19% to $134 million, including 34% international growth for Simparica Trio. Revenue from monoclonal antibodies for osteoarthritis pain in dogs, which include Librela and Lenvia, was approximately $105 million, down 8%. Treatments for cats, Solensia and Portela, grew 12% to $42 million, supported by initial contributions from the launch of Portela in the European Union and Canada.
Zoetis generally did not reduce list prices, but during 2026 it used rebates, promotions, product bundling, and point-of-sale support to protect volume and share. These actions were reflected in the roughly flat price impact during Q2 FY2026, and the company expects price realization of between zero and negative 1% for FY2026, potentially reaching negative 2% at the low end of the outlook. In contrast, the company repurchased more than $550 million of shares during the quarter, reducing the number of shares outstanding. This helped adjusted diluted earnings per share rise 4% to $1.87 despite a 2% operational organic decline in adjusted net income.
Zoetis said that Abhay Nayak was promoted in June 2026 to Executive Vice President and President of U.S. Commercial Operations after leading Global Diagnostics. It also announced on August 6, 2026, that Jay Saccaro would join on August 17, 2026, as Executive Vice President, Chief Financial Officer, and Chief Operating Officer, a new role overseeing finance, global manufacturing, and supply. Wetteny Joseph explained that he would remain a special advisor on financial matters until early 2027 to support a smooth transition. The company did not link these changes to any change in the position of Chief Executive Officer Kristin Peck.