Zoetis reported flat revenue of $2.47 billion in Q2, missing Wall Street estimates of $2.50 billion, though adjusted earnings per share of $1.87 slightly beat consensus. The animal health company faces intensifying competition in key Companion Animal categories and declining US veterinary clinic visits. CEO Kristin Peck noted that veterinary visits have declined across markets for multiple years, coinciding with price increases exceeding broader consumer inflation. The company's Livestock and Diagnostics segments showed resilience despite weakness in dermatology and parasiticides. Zoetis lowered its full-year revenue guidance to $9.22 billion from $9.82 billion, a 6.1% reduction, and cut adjusted EPS guidance to $6.20, down 10.5%. Operating margin fell to 37.4% from 39.1% year-on-year. Management indicated it is implementing temporary, targeted promotional actions rather than permanent price cuts to defend market share. Competitive pressures may persist into 2027.

Zoetis has appointed former GE Healthcare CFO Jay Saccaro to a newly created dual role as CFO and chief operating officer, effective 17 August. Saccaro, who spent three years at GE Healthcare and nine years as CFO at Baxter International Healthcare, will receive an annual base salary of $1 million, with eligibility for bonuses totalling 100% of his salary and long-term incentives worth $5 million. He will also receive a one-time restricted stock unit award valued at approximately $6.2 million and a cash award of $1.2 million. Current CFO Wetteny Joseph will transition to special advisor on 16 August, remaining in a non-executive role until February 2027 or an earlier agreed date. The appointment comes as the New Jersey-based animal health company seeks new growth opportunities amid economic headwinds.

Zoetis reported second-quarter 2026 adjusted earnings of $1.87 per share, beating the consensus estimate of $1.84. However, total revenues of $2.47 billion fell flat year over year and marginally missed expectations of $2.49 billion. US segment revenues declined 7% to $1.30 billion, driven by an 11% drop in companion animal product sales due to softer demand and increased competition. Livestock product sales in the US rose 23% to $222 million. International segment revenues increased 8% to $1.17 billion, supported by growth in parasiticides and livestock products. Zoetis cut its 2026 revenue guidance to $9.12-9.32 billion, reflecting expected operational growth of negative 1-3%. Year to date, shares have plunged 40%.