NEW YORK, August 8, 2026, 12:13 EDT – Zoetis stock slid close to its lowest level in 52 weeks after the company reduced its guidance, with share repurchases helping to stabilize earnings per share.
- Zoetis finished at $72.66 on Friday, falling 5.97% for the day and 42.25% since the start of the year.
- A 6.2% decrease in diluted shares supported an increase in adjusted EPS, even though adjusted profit declined.
- The midpoint of the adjusted-EPS forecast dropped 10.5%. Analysts issued revised targets between $80 and $115.
Zoetis Inc. NYSE:ZTS ended Friday’s session at $72.66, standing 1.7% higher than its 52-week low. The stock dropped 5.97% over the day and 5.99% across the week. Trading volume was 1.9 times the norm. U.S. markets did not open on Saturday.
The more pressing issue for investors is beneath the revenue shortfall. Adjusted net income dropped by 1% in the second quarter, but adjusted EPS climbed 5%, with the reduced number of shares accounting for the increase.
Based on the share total from last year, adjusted EPS was approximately $1.75, according to calculated projections. This figure is 1.5% lower than the year-ago period. Figures are calculated with company-provided rounded numbers.
| Earnings bridge | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Revenue | $2.468 billion | $2.474 billion | Unchanged |
| Adjusted net income | $781 million | $791 million | Down 1% |
| Adjusted diluted EPS | $1.87 | $1.78 | Up 5% |
| Diluted shares | 417.7 million | 445.5 million | Decrease of 6.2% |
| Derived EPS at 2025 share count | $1.75 | $1.78 | Down 1.5% |
Zoetis bought back 11 million shares at a total cost of $1.159 billion in the first half. The average price paid, before excise taxes, was $105.36 per share. Shares ended Friday 31% under that level. As of June 30, Zoetis had about $1.3 billion left available for repurchases under its authorization.
Capital returns surpassed internal cash generation. The company spent $1.637 billion on treasury stock purchases and dividends. Operating cash flow amounted to $1.056 billion. Cash decreased by $974 million, reaching $1.476 billion. This shortfall increases the expense of using buybacks again.
The decline in operating performance was focused. Revenue from U.S. companion animals dropped 11%. U.S. livestock sales climbed 23%. International companion-animal revenue advanced 8% on a reported basis and 5% organically.
Chief Executive Kristin Peck stated, “Lower clinic visits and pet owner price sensitivity reduced demand.” Zoetis additionally pointed to increased competition in dermatology, ongoing pressures on Simparica Trio, generic competition, and decreased Librela sales. Zoetis Investor Relations
The company’s quarterly revenue came in approximately $30 million below the average Wall Street estimate. Adjusted earnings per share exceeded expectations by one cent. The guidance revision was significantly larger. Revenue guidance at the midpoint declined by 6.1%, while the midpoint for adjusted EPS decreased 10.5%.
| 2026 outlook | August 6 guidance | May 7 guidance | Midpoint change |
|---|---|---|---|
| Revenue | $9.12–$9.32 billion | $9.68–$9.96 billion | -6.1% |
| Organic revenue growth | -3% to -1% | +2% to +5% | 5–6 points lower |
| Adjusted net income | $2.57–$2.62 billion | $2.87–$2.95 billion | -10.8% |
| Adjusted diluted EPS | $6.15–$6.25 | $6.85–$7.00 | -10.5% |
Animal health demand varied. IDEXX Laboratories Inc. NASDAQ:IDXX and Elanco Animal Health Inc. (NYSE:ELAN) both posted 10% revenue growth earlier in the week, and each lifted their full-year outlooks. Metrics reflect each company’s individual criteria.
| Company | Q2 reported revenue growth | Pet-related measure | 2026 outlook action |
|---|---|---|---|
| Zoetis | Unchanged | Companion Animal -5% | Lowered |
| IDEXX | +10% | CAG Diagnostics recurring +11% | Increased |
| Elanco | +10% | Pet Health +12% | Increased |
As the week ended, analysts reduced their targets. JPMorgan Chase & Co. NYSE:JPM continued to offer the biggest potential gain among targets reported on Friday. UBS Group AG NYSE:UBS provided only limited potential above the closing price. William Blair downgraded its recommendation.
| Firm | August 7 recommendation or action | New target | Upside to $72.66 |
|---|---|---|---|
| JPMorgan Chase | Lowered target from $130 | $115 | 58.3% |
| UBS Group | Neutral; target lowered from $85 | $80 | 10.1% |
| William Blair | Cut to Market Perform | — | — |
A survey of 19 analysts continued to reflect a consensus Outperform rating. The consensus price target averaged $104.19, representing a 43.4% premium to Friday’s closing price. The stock traded at a trailing price-to-earnings ratio of 11.95, a figure based on past results and incorporating earnings boosted by buybacks.
Investors are set to monitor estimate adjustments again next week. The upcoming IDEXX Investor Day, scheduled for Thursday, August 13, provides the closest sector update. Data on clinic testing volumes could clarify whether wider demand softness is occurring or if Zoetis is facing company-specific market pressures.
Risks: Stronger clinic expansion, effective product launches, or increased commercial share may suggest Friday’s decline was overdone. Growing price pressure, greater impact from generics, or reduced market share would continue to weigh on profits and cash flow.
