Weaker demand for pet healthcare products, lower clinic visits and tougher competition hit the companion-animal business, while U.S. livestock sales strengthened and James Saccaro was named CFO and COO.
Zoetis lowered its 2026 outlook after second-quarter revenue missed Wall Street estimates, citing softer demand for pet healthcare products, lower clinic visits, pet owners' price sensitivity and stronger competition in key categories. Shares were up 3.84% at $77.25 at the time of publication on Thursday. The animal health company cut its adjusted earnings per share forecast to $6.15 to $6.25 from $6.85 to $7.00, below the consensus estimate of $6.88. It also reduced its 2026 sales guidance to $9.12 billion to $9.32 billion from $9.680 billion to $9.96 billion, versus consensus of $9.726 billion. Second-quarter sales were $2.468 billion, missing the $2.502 billion consensus, while adjusted earnings of $1.87 per share slightly beat the $1.86 consensus. Revenue was flat year over year and down 1% on an organic operational basis. In the U.S., revenue fell 7% to $1.3 billion as companion animal product sales dropped 11%, pressured by weaker end-market demand, pricing pressure in dermatology and parasiticides, generic competition affecting Cerenia and Convenia, and lower sales of Librela. U.S. livestock product sales rose 23%, helped by strength in cattle and poultry, including vaccine demand linked to disease outbreak activity. Zoetis also appointed James (Jay) Saccaro as Executive Vice President, CFO and COO effective August 17, while Wetteny Joseph will move to an advisory role.