Zoetis: 3 Key Takeaways for Long-Term Investors
On its third-quarter 2026 earnings call, held on Nov. 5, 2026, Zoetis (NYSE:ZTS) reported a 1% revenue decline, excluding currency and acquisition effects. Lower veterinary clinic visits and generic competition continue to pressure pet care returns. Three things management said stand out. Companion animal revenue fell 5% as lower veterinary visits and stiff competition hurt the core dermatology portfolio. Management deployed gross-to-net promotional investments, which reduce gross sales to net revenue through targeted customer discounts, to defend key vet accounts against rival drugs. Livestock revenue grew 7% globally to $797 million, driven by demand for cattle treatments and poultry vaccines. This steady demand for agricultural protein balances cyclical drops in discretionary pet care spending across North America and Europe. Continue reading