Zoetis (ZTS) 2026 KeyBanc Capital Markets Healthcare Forum summary

Revenue and growth outlook

• Forecasts 3%-5% organic operational revenue growth for 2026, led by parasiticides due to increased competition in dermatology; pain expected to return to growth in 2026.

• Livestock segment has outperformed historical growth rates, with expectations to continue beating the market.

• Price increases of 2%-3% are anticipated, with the remainder of growth from volume, consistent with historical trends.

• Freight costs may be impacted by sustained high oil prices, but regional sales exposure is minimal.

Market dynamics and consumer trends

• Veterinary clinic spending remains strong despite fewer visits, driven by the humanization of pets and willingness to spend on acute care.

• Millennials and Gen Z pet owners are sensitive to surprise costs, prompting clinics to develop new value propositions.

• Brand loyalty is high, with strong reorder rates and customer satisfaction for key products like Apoquel, Cytopoint, and Simparica Trio.

Innovation and product pipeline

• Long-acting therapies, such as Cytopoint and pain products, are expected to extend franchise lifecycles and improve compliance.

• New approvals anticipated for long-acting injectables and a new chemistry platform in diagnostics.

• Renal, oncology, and cardiology franchises are in development, with renal seen as a $3-$4 billion market opportunity.

• Expansion of total addressable markets is expected as diagnostic rates improve and new therapies become available.