Zoetis Stock Gains After Q4 Earnings & Revenues Beat Estimates

Core Insights - Zoetis, Inc. (ZTS) reported fourth-quarter 2025 adjusted earnings of $1.48 per share, exceeding the Zacks Consensus Estimate of $1.40, and up from $1.40 in the same quarter last year [1] - Total revenues for the quarter increased by 3% year over year to $2.39 billion, surpassing the Zacks Consensus Estimate of $2.37 billion, compared to $2.32 billion in the prior year [1] Financial Performance - U.S. segment revenues decreased by 2% year over year to $1.24 billion, missing the Zacks Consensus Estimate of $1.27 billion [3] - Sales of companion animal products in the U.S. declined by 1% year over year to $1 billion, with growth in parasiticides and dermatology products offset by a decline in monoclonal antibody products for osteoarthritis pain [4] - Livestock product sales in the U.S. fell by 6% to $234 million, primarily due to the divestiture of the medicated feed additive product portfolio [6] - International segment revenues grew by 8% year over year to $1.12 billion, exceeding the Zacks Consensus Estimate of $1.06 billion [8] - Ex-U.S. sales of companion animal products rose by 7% to $599 million, driven by growth in key products [8] - Livestock product sales internationally increased by 9% to $522 million, supported by growth across core species [9] Full-Year Results and Guidance - For the full year 2025, Zoetis reported adjusted earnings of $6.41 per share, up from $5.92 the previous year, and total revenues of $9.47 billion, an increase of 2% year over year [10] - The company provided guidance for 2026, expecting adjusted earnings in the range of $7.00-$7.10 per share and revenues between $9.825 billion and $10.025 billion, indicating operational growth of 3-5% [11][13] Product Developments - Zoetis received EU approval for Lenivia, a long-acting monoclonal antibody therapy for canine osteoarthritis pain, with a commercial launch expected in 2026 [14] - The approval of Lenivia is anticipated to enhance Zoetis' position in the companion-animal biologics market and expand its offerings in the osteoarthritis segment [15]