Zoetis (ZTS) Q4 2025 earnings summary

Executive summary

• Achieved $9.5 billion in 2025 revenue, up 2% reported and 6% organic operational, with 4% from price and 2% from volume; adjusted net income reached $2.8 billion, up 6% reported and 7% organic operational.

• Adjusted diluted EPS was $6.41, up 10% organic operational year-over-year.

• Simparica Trio surpassed $1 billion in US sales, with double-digit global growth; key dermatology franchise revenue up 6% operationally.

• Livestock segment grew 8% organically, marking the third consecutive year of mid-to-high single-digit growth.

• Returned over $4.1 billion to shareholders via share repurchases and dividends.

Financial highlights

• Full year revenue: $9,467 million (+2% reported, +6% organic operational YoY); Q4 revenue: $2,387 million (+3% YoY).

• Full year adjusted net income: $2,847 million (+6% reported, +7% organic operational YoY); Q4 adjusted net income: $648 million (+3% YoY).

• Adjusted gross margin for 2025 was 71.9%, up from 70.7% in 2024.

• Simparica franchise revenue was $1.5 billion (+12% operational); key dermatology portfolio reached $1.7 billion (+6% operational).

• OA pain monoclonal antibodies declined 3% operationally to $568 million.

Outlook and guidance

• 2026 revenue guidance: $9,825–$10,025 million, with 3–5% organic operational growth; adjusted net income guidance: $2,975–$3,025 million, with 3–6% organic operational growth.

• Adjusted diluted EPS expected at $7.00–$7.10; share repurchases to add ~$0.22 to EPS.

• Adjusted cost of sales as a percent of revenue expected at ~28% for 2026.

• Companion animal and livestock expected to remain key growth drivers, with price contributing 2%–3% and the remainder from volume.