Market Overview - U.S. equity markets are experiencing a midday retreat on November 4, 2025, with major indexes pulling back as investors digest corporate earnings and economic data, alongside cautious sentiment in the technology sector [1][2] - The S&P 500 has declined approximately 1.3% by midday, the Dow Jones Industrial Average is down around 0.9%, and the Nasdaq Composite has seen a drop of 1.5% [2] Economic Data and Events - Investors are monitoring key economic data releases, including U.S. JOLTS Job Openings, International Trade in Goods and Services, and Factory Orders reports [3] - Upcoming reports include the ISM Services Business Activity index and the ADP Employment Change report, which are crucial due to the ongoing U.S. government shutdown [4] Technology Sector Performance - Palantir Technologies shares fell between 8% and 10% despite exceeding earnings forecasts and raising revenue guidance, attributed to profit-taking and concerns over high valuation [6] - Other tech stocks like Nvidia and Microsoft also experienced declines, with Nvidia down 1.7% to 2.8% and Microsoft down 0.7% [6] Automotive and Consumer Discretionary - Tesla shares slid 2.7% after Norway's sovereign wealth fund announced intentions to vote against CEO Elon Musk's compensation package [7] - Norwegian Cruise Line saw an 11% drop following a mixed earnings report and forecast [7] Earnings Reactions - Zoetis shares plunged 13% after revising its sales forecast downwards, while IDEXX Laboratories surged 14.8% after reporting strong earnings [8] - Ferrari announced a 7.4% year-over-year increase in net revenues, with diluted earnings per share reaching Euro 2.14 [9] Upcoming Earnings - Key companies scheduled to report earnings include Advanced Micro Devices, Shopify Inc., Arista Networks, Uber Technologies, Amgen, Eaton Corporation, Pfizer, and Spotify Technology [10]

Financial Data and Key Metrics Changes - The company reported $2.4 billion in revenue for Q3 2025, growing 1% on a reported basis and 4% on an organic operational basis, primarily driven by price, as volume was flat [19][5][15] - Adjusted net income was $754 million, reflecting a 5% increase on a reported basis and a 9% increase on an organic operational basis [19][30] - Adjusted gross margins improved to 71.6%, growing 90 basis points on a reported basis [29][30] Business Line Data and Key Metrics Changes - The global companion animal portfolio generated $1.7 billion in revenue, growing 2% operationally, with the parasiticide franchise contributing $356 million (7% growth) and key dermatology posting $469 million (3% growth) [20][19] - The osteoarthritis (OA) pain franchise declined 11% operationally to $138 million, with Librela sales down 15% globally [20][10] - The global livestock portfolio grew 10% on an organic operational basis, contributing $725 million in revenue [20][13] Market Data and Key Metrics Changes - In the U.S., revenue decreased 2% on a reported basis but increased 3% on an organic operational basis, with companion animal flat and livestock growing 14% [21][19] - International revenue grew 3% on a reported basis and 6% on an organic operational basis, with companion animal growing 4% and livestock growing 8% [26][19] Company Strategy and Development Direction - The company is focused on a multi-pronged strategy to return Librela to growth, including increasing awareness of OA as a serious disease and deepening education with specialists and veterinarians [10][11] - The company is evolving its U.S. commercial structure to enhance agility and efficiency, aiming for a leaner field organization [12][13] - The company anticipates a major new market approval each year for the next several years, highlighting its robust innovation pipeline [11][16] Management's Comments on Operating Environment and Future Outlook - Management noted that therapeutic visits have been declining, impacting new patient starts, and emphasized the importance of addressing this trend for future growth [36][66] - The company remains confident in its long-term growth trajectory, supported by a diversified portfolio and strong market fundamentals [15][31] - Management updated full-year guidance, revising organic operational revenue growth to a range of 5.5%-6.5% [15][30] Other Important Information - The company announced the retirement of Rob Polzer, head of R&D, and the appointment of Kevin Esch as his successor [17][16] - The company is investing in manufacturing excellence to support its expanding portfolio, including a new biologics facility [12][11] Q&A Session Summary Question: What changed interquarterly after raising guidance last quarter? - Management noted anticipated deceleration in the second half of the year, competitive launch dynamics, and macro impacts on U.S. clinics as key factors [35][36] Question: How is the competitive landscape affecting the dermatology category? - Management acknowledged competitive pressures but emphasized that patient share gains from competitors have been limited [42][66] Question: What is the outlook for therapeutic visits and when might recovery occur? - Management indicated that therapeutic visits have been declining, impacting patient starts, and recovery timing remains uncertain [66][63] Question: How durable are the growth drivers in livestock? - Management expressed confidence in the sustainability of livestock growth driven by increased protein demand and urbanization trends [72][71] Question: What lessons have been learned from Librela's launch for upcoming products? - Management plans to apply learnings from Librela to new launches, focusing on education and awareness of OA [58][57]

Financial Data and Key Metrics Changes - The company reported $2.4 billion in revenue for Q3 2025, growing 1% on a reported basis and 4% on an organic operational basis, primarily driven by price, as volume was flat [19][5] - Adjusted net income was $754 million, reflecting a 5% increase on a reported basis and a 9% increase on an organic operational basis [19][5] - Adjusted gross margins improved to 71.6%, growing 90 basis points on a reported basis [29] Business Line Data and Key Metrics Changes - The global companion animal portfolio generated $1.7 billion in revenue, growing 2% operationally, with the parasiticide franchise contributing $356 million (7% growth) and key dermatology posting $469 million (3% growth) [20][5] - The osteoarthritis (OA) pain franchise declined 11% operationally to $138 million, with Librela sales down 15% globally [10][20] - The global livestock portfolio grew 10% on an organic operational basis, contributing $725 million in revenue [20][13] Market Data and Key Metrics Changes - In the U.S., revenue decreased by 2% on a reported basis but increased by 3% on an organic operational basis, with companion animal flat and livestock growing 14% [21][19] - International revenue grew 3% on a reported basis and 6% on an organic operational basis, with companion animal growing 4% and livestock growing 8% [26][19] Company Strategy and Development Direction - The company is focused on a multi-pronged strategy to return Librela to growth, including increasing awareness of OA as a serious disease and deepening education with specialists and veterinarians [10][11] - The company is evolving its U.S. commercial structure to enhance agility and efficiency, aiming for a leaner field organization [12][13] - The livestock segment is expected to continue demonstrating above-market growth, driven by rising protein consumption and urbanization trends [14][72] Management's Comments on Operating Environment and Future Outlook - Management noted that therapeutic visits have been declining, impacting new patient starts, and emphasized the importance of these visits for growth [35][46] - The company anticipates a return to growth in 2026, particularly for Librela, as signs of stabilization are observed [36][70] - The guidance for full-year revenue has been revised to a range of $9.4 billion to $9.475 billion, reflecting a more measured view of macro and operational trends [30][15] Other Important Information - The company announced the retirement of Rob Polzer, head of R&D, and the appointment of Kevin Esch as his successor [16][17] - The company is excited about the upcoming launches of Linivi and Portela, which are expected to expand the market for OA pain management [11][58] Q&A Session Summary Question: What changed interquarterly after raising guidance last quarter? - Management noted anticipated deceleration in the second half of the year, competitive launch dynamics, and macro impacts on U.S. clinics as key factors [35][36] Question: How is the competitive landscape affecting the dermatology category? - Management acknowledged competitive pressures but emphasized that patient share gains from competitors have been limited [42][64] Question: What are the expectations for livestock growth moving forward? - Management expressed confidence in the sustainability of livestock growth drivers, citing increased demand for protein and urbanization trends [72][71]

Financial Data and Key Metrics Changes - The company reported $2.4 billion in revenue for Q3 2025, growing 1% on a reported basis and 4% on an organic operational basis, primarily driven by price as volume was flat [26][27] - Adjusted net income was $754 million, growing 5% on a reported basis and 9% on an organic operational basis [27][44] - Adjusted diluted EPS grew 7% operationally in the quarter and 12% on an organic operational basis [44] Business Line Data and Key Metrics Changes - The global companion animal portfolio posted revenue of $1.7 billion, growing 2% operationally, with the Simparica franchise contributing $356 million, growing 7% [27][31] - The livestock portfolio grew 10% on an organic operational basis, contributing $725 million in revenue, reflecting strong performance across segments and species [27][28] - The osteoarthritis pain franchise declined 11% operationally, with global Librela sales down 15% [13][27] Market Data and Key Metrics Changes - In the U.S., companion animal revenue was flat, while livestock grew 14% on an organic operational basis [29] - Internationally, revenue grew 3% on a reported basis and 6% on an organic operational basis, with companion animal growing 4% and livestock growing 8% [37][38] - The international Simparica franchise grew 22% operationally, with Simparica Trio growing 32% [39][40] Company Strategy and Development Direction - The company is focused on enhancing its U.S. commercial structure to better serve customers and improve agility, aiming for a leaner field organization [16][17] - Continued investment in manufacturing excellence and innovation is emphasized, with plans for new product launches and geographic expansions [15][20] - The company anticipates a major new market approval each year for the next several years, reinforcing its long-term growth trajectory [15][22] Management's Comments on Operating Environment and Future Outlook - Management noted that therapeutic visits in U.S. clinics have been declining, impacting new patient starts, but alternative channels are showing strong growth [63][64] - The company is optimistic about returning to growth in 2026, particularly in the livestock segment, which has shown resilience [55][96] - Management expressed confidence in the long-term growth potential of the business and the broader animal health market despite near-term challenges [46][96] Other Important Information - The company announced the retirement of Rob Holder, Head of R&D, and the appointment of Kevin Esch as his successor [22][23] - The company is implementing a multi-pronged strategy to return Librela to growth, focusing on education and awareness of osteoarthritis [14][80] Q&A Session Summary Question: What changed intra-quarter after raising guidance last quarter? - Management acknowledged deceleration in the back half of the year due to strong comps and macro impacts, particularly in U.S. clinics [50][51] Question: How is competition affecting the dermatology category? - Management noted that competitive dynamics have intensified, but they remain confident in their product positioning and market share [58][89] Question: What are the growth drivers for livestock moving forward? - Management highlighted sustainable demand for protein and urbanization as key growth drivers for livestock [96][97]

Financial Data and Key Metrics Changes - The company reported $2.4 billion in revenue for Q3 2025, growing 1% on a reported basis and 4% on an organic operational basis, primarily driven by price as volume was flat [18][29] - Adjusted net income was $754 million, reflecting a 5% increase on a reported basis and a 9% increase on an organic operational basis [18][29] - Adjusted gross margins improved to 71.6%, growing 90 basis points on a reported basis [28] Business Line Data and Key Metrics Changes - The global companion animal portfolio generated $1.7 billion in revenue, growing 2% operationally, with the Simparica franchise contributing $356 million, growing 7% [19][21] - The livestock portfolio grew 10% on an organic operational basis, contributing $725 million in revenue, with broad-based growth across segments and species [19][25] - The osteoarthritis (OA) pain franchise declined 11% operationally to $138 million, with Librela sales down 15% globally [8][19] Market Data and Key Metrics Changes - The U.S. market saw a 2% decline in revenue on a reported basis, while organic operational growth was 3% [21] - International revenue grew 3% on a reported basis and 6% on an organic operational basis, with companion animal growth at 4% and livestock growth at 8% [25][26] Company Strategy and Development Direction - The company is focused on enhancing its U.S. commercial structure to better serve customers and improve agility, aiming for a leaner field organization [12] - A multi-pronged strategy is being executed to return Librela to growth, including increasing awareness of OA as a serious disease and deepening education with specialists [9][48] - The company anticipates a major new market approval each year for the next several years, highlighting its robust innovation pipeline [10][16] Management's Comments on Operating Environment and Future Outlook - Management noted that growth moderated due to strong year-over-year comparisons and macro factors affecting vet clinic visits [5][15] - The company remains confident in its long-term growth trajectory, supported by a diversified portfolio and market-leading innovation [16][30] - Guidance for full-year organic operational revenue growth has been revised to 5.5%-6.5%, reflecting a more measured view of macro and operational trends [15][29] Other Important Information - The company announced the retirement of Rob Polzer, head of R&D, and the appointment of Kevin Esch as his successor [17] - The company is maintaining its reported diluted and adjusted diluted EPS guidance range of $5.90-$6.00 and $6.30-$6.40, respectively [29][30] Q&A Session Summary Question: What changed interquarterly after raising guidance last quarter? - Management noted anticipated deceleration in the second half of the year, with macro impacts particularly in U.S. clinics affecting therapeutic visits [31][32] Question: How is competition affecting the dermatology category? - Management acknowledged competitive dynamics but emphasized that the overall patient share gains from competitors have been limited [36][52] Question: What is the outlook for therapeutic visits recovery? - Management indicated that therapeutic visits have been down, impacting new patient starts, but expressed optimism for recovery as macro conditions improve [51][40] Question: How durable are the growth drivers in livestock? - Management expressed confidence in the sustainability of livestock growth, driven by increased demand for protein and population growth [56]

Core Insights - Zoetis reported adjusted income of $1.70 per share on $2.4 billion in third-quarter sales, which was below analysts' expectations of $1.62 per share and $2.41 billion in sales [1][2] - The company maintained its adjusted profit guidance for $6.30 to $6.40 per share but cut its sales outlook to $9.4 billion to $9.475 billion, down from previous guidance of $9.45 billion to $9.6 billion [2] - In premarket trading, Zoetis stock fell 12.6% to $126.10, marking the lowest price since November 2022 [3] Financial Performance - Adjusted income for the year-earlier period was $1.58 per share with sales of $2.39 billion [1] - The new sales outlook represents organic operational growth of 5.5% to 7%, a decrease from the previous guidance of 6.5% to 8% [2] - Analysts had projected earnings of $6.35 per share and $9.51 billion in sales, indicating a potential shortfall in expectations [2] Market Reaction - The significant drop in stock price reflects investor concerns over the revised sales outlook and overall market conditions [3] - The decline in stock price to $126.10 indicates a negative market sentiment towards Zoetis following the earnings report [3]

分组1 - Zoetis reported quarterly earnings of $1.7 per share, exceeding the Zacks Consensus Estimate of $1.62 per share, and showing an increase from $1.58 per share a year ago, resulting in an earnings surprise of +4.94% [1] - The company posted revenues of $2.4 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.35%, but showing a year-over-year increase from $2.39 billion [2] - Over the last four quarters, Zoetis has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 11.4% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for future stock performance [4] - The current consensus EPS estimate for the coming quarter is $1.48 on revenues of $2.42 billion, and for the current fiscal year, it is $6.35 on revenues of $9.5 billion [7] 分组3 - The Zacks Industry Rank indicates that the Medical - Drugs sector is currently in the top 36% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for Zoetis was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Core Viewpoint - Zoetis has significantly reduced its full-year financial outlook, indicating challenges in the market and potential impacts on future performance [1] Financial Performance - The company has adjusted its revenue forecast, now expecting between $7.45 billion and $7.55 billion, down from a previous estimate of $7.55 billion to $7.65 billion [1] - Zoetis anticipates adjusted earnings per share (EPS) in the range of $3.05 to $3.15, a decrease from the earlier guidance of $3.15 to $3.25 [1] Market Challenges - The revision in outlook is attributed to various market pressures, including changes in demand and pricing dynamics within the veterinary pharmaceutical sector [1] - The company is facing increased competition and pricing pressures that are affecting its sales growth [1]

Financial Performance - Zoetis' Q3 revenue reached $24 billion, with organic operational growth of 4%[12] - Adjusted net income was $754 million, reflecting a 9% organic operational increase[12] - Adjusted diluted EPS stood at $170, demonstrating a 12% organic operational rise[12] Segment Highlights - The U S segment revenue totaled $13 billion, with 3% organic operational growth[24] - U S companion animal revenue remained flat at $11 billion[24] - U S livestock revenue saw a 14% organic operational increase, reaching $03 billion[24] - International segment revenue amounted to $11 billion, showing 6% organic operational growth[24] - International companion animal revenue grew 4% to $06 billion[24] - International livestock revenue increased by 8% to $05 billion[24] Updated Outlook - Zoetis revised its full-year 2025 organic operational revenue growth to 55%-65%[13] - The company maintained its adjusted diluted EPS guidance at $630-$640[13]

EXHIBIT 99.1 Zoetis Announces Third Quarter 2025 Results PARSIPPANY, N.J. – November 4, 2025 – Zoetis Inc. (NYSE:ZTS) today reported its financial results for the third quarter of 2025. The company reported revenue of $2.4 billion for the third quarter of 2025, an increase of 1% compared with the third quarter of 2024. On an organic operational basis, revenue for the third quarter of 2025 increased 4% compared with the third quarter of 2024. Net income for the third quarter of 2025 was $721 million, or $1.6 ...