Key Takeaways Zoetis is set to report Q4 2025 results, with revenue and EPS estimates at $2.37B and $1.40, respectively.U.S. segment sales likely fell on lower companion animal product demand, with revenues estimated at $1.27B.International revenues are projected to rise to $1.06B, driven by stronger companion animal product sales.Zoetis, Inc. (ZTS) is expected to beat expectations when it reports its fourth-quarter 2025 earnings on Feb. 12, 2026, before the opening bell.The Zacks Consensus Estimate for the ...

Zoetis (NYSE: ZTS) tanked after its November earnings release. Will history repeat itself pre-market on Feb. 12, when the animal healthcare company releases results for the fourth quarter of 2025? That's the question on the minds of many investors, less than a week before its earnings report hits the street. Whether the stock rallies after earnings or falls further afterward may depend on how closely the guidance updates align with current expectations. Fortunately for Zoetis, with expectations already wa ...

The fourth-quarter 2025 reporting cycle for the Medical sector is about to pick up pace this week, as most firms are slated to share their earnings results over the next two weeks. The sector mainly comprises pharma/biotech and medical device companies. The earnings season for the drug and biotech sector kicked off in late January when bellwether Johnson & Johnson reported strong fourth-quarter results, beating estimates for earnings and sales. While most of the pharma bigwigs are slated to report their ear ...

Summary of Key Points Core Viewpoint - Zoetis and Regeneron Pharmaceuticals have faced challenges over the past year, leading to disappointing financial results. However, recent developments indicate a potential recovery for both companies in the near future [1]. Group 1: Zoetis - Zoetis is a prominent player in the animal health sector, with a diverse product portfolio, particularly focused on companion animals [3]. - The company faced difficulties with its key growth products, Librela and Solensia, due to safety concerns that resulted in adverse events in pets [4]. - To counteract these issues, Zoetis has introduced new OA pain treatments, Lenivia and Portela, which have received approval in multiple countries and are expected to help regain market share [5]. - The new treatments are long-acting and require less frequent administration, which is advantageous for both veterinarians and pet owners [5]. - Established products like Apoquel continue to perform well, providing additional support for Zoetis' financial recovery [6]. Group 2: Regeneron - Regeneron has been dealing with intense competition for its leading product, Eylea, which treats various eye diseases [7]. - The company has made strides by launching a higher-dose version of Eylea and obtaining label expansions, allowing for a broader patient base and a more convenient dosing schedule [7]. - These advancements have positively influenced Regeneron's stock performance over the past six months [8]. - Regeneron continues to rely on its successful product Dupixent, which addresses conditions such as eczema and COPD, contributing to its growth [9].

Summary of Zoetis Conference Call Company Overview - **Company**: Zoetis - **Industry**: Animal Health - **Current Market Size**: Approximately $50 billion, projected to grow to $90 billion over the next 10 years [4][3] Key Industry Insights - **Growth Drivers**: - Strong sectoral tailwinds in both companion animal and livestock segments [3] - Increasing global population demanding nutritious protein [4] - Shift towards pet medicalization driven by younger pet owners (Millennials and Gen Z) [6] - **Market Trends**: - Companion animal market growth driven by increased spending on veterinary care and advanced therapies [6] - Livestock sector recovering from disruptions caused by African swine fever and COVID-19, with mid-single-digit growth [8] Company Performance - **Revenue Growth**: - Zoetis has achieved an 8% compound annual growth rate (CAGR) since its IPO, outperforming the industry average of 5% [5] - **Profitability**: - EBITDA margins of 41%-42% and mid-20s return on invested capital (ROIC) [21] - **R&D Investment**: - $5 billion invested in R&D since IPO, leading to 2,000 regulatory approvals over the last decade [9][10] Product Pipeline and Innovation - **Future Blockbusters**: - 12 potential blockbuster drugs in the pipeline, with expectations for major market approvals annually [11][12] - **Key Areas of Focus**: - Chronic kidney disease, oncology, cardiology, obesity, and anxiety in pets, with significant market potential [13][14][15][16] - **Diagnostics and Preventatives**: - Emphasis on expanding diagnostics and preventative care in livestock and companion animals [20] Market Position and Strategy - **Commercial Excellence**: - Direct field force in 45 markets, combining sales with medical affairs and marketing for effective execution [15] - **Product Leadership**: - Simparica Trio leading in the parasiticide space, with high customer satisfaction [16] - **Dermatology Portfolio**: - Strong portfolio including Apoquel and Cytopoint, with plans for long-acting products [17][18] Financial Strategy - **Capital Allocation**: - Focus on innovation, disciplined capital allocation, and returning excess cash to shareholders through dividends and buybacks [24][25] - **Shareholder Returns**: - Over 125% of free cash flow returned to shareholders in the last three years, with a 13% CAGR in dividends [24] Challenges and Outlook - **Short-term Headwinds**: - Anticipated slowdown in companion animal growth due to price increases and macroeconomic factors [27][29] - **Long-term Confidence**: - Sustained growth expected from livestock and diagnostics, with a focus on executing commercial strategies [30][32] - **Future Growth Projections**: - Long-term growth expectations remain robust, supported by industry trends and Zoetis's innovation pipeline [35] Conclusion - **Zoetis's Position**: - Well-positioned to capitalize on the growing animal health market with a strong pipeline, innovative products, and a disciplined approach to capital allocation [26]

44TH ANNUAL J.P. MORGAN HEALTHCARE CONFERENCE Leading the Future of Animal Health January 12, 2026 Forward-Looking Statements This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: industry growth and market outlook; business plans or prospects; future operating or financial performance; future guidance; future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under developm ...

Fundsmith Equity Fund Performance - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - Since inception, the fund has outperformed the index by 1.7% per annum [1] - Underperformance in 2025 attributed to index concentration, growth of assets in Index Funds, and dollar weakness [1] Investment Focus and Strategy - Fundsmith Equity Fund highlighted Zoetis Inc. (NYSE:ZTS) as a key investment in its fourth-quarter 2025 letter [2][3] - The fund sold stakes in Brown-Forman and PepsiCo, and began purchasing Zoetis, EssilorLuxottica, Intuit, and Wolters Kluwer [3] - Zoetis is recognized as a leading veterinary pharmaceutical company, benefiting from long-term growth in pet healthcare spending [3] Zoetis Inc. Overview - Zoetis Inc. reported a market capitalization of $56.36 billion [2] - The company generated revenue of $2.4 billion in Q3 2025, reflecting a 1% increase on a reported basis and 4% on an organic operational basis [4] - Zoetis's share price faced challenges due to concerns over side effects from its drug Librela, although it remains prescribed by veterinarians [3] Hedge Fund Interest - Zoetis Inc. was held by 72 hedge fund portfolios at the end of Q3 2025, a slight decrease from 75 in the previous quarter [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds [4]

Core Insights - Zoetis Inc. (NYSE:ZTS) is recognized as a strong investment opportunity by analysts, particularly following its innovation day on December 2, which showcased long-term growth prospects [1] - The animal health market is projected to grow to $90 billion by 2035, nearly doubling its current size, which is significant for Zoetis as it has 12 candidates in its pipeline targeting chronic kidney disease, oncology, and cardiology, representing over $5 billion in total addressable market [2] Analyst Ratings - Following the innovation day, Brandon Vazquez from William Blair reiterated a Buy rating on Zoetis Inc. without a specified price target, while Michael Ryskin from Bank of America Securities also maintained a Buy rating but reduced the price target from $200 to $165 [3] - Vazquez emphasized that the updates from the innovation day indicate a strong innovation engine for the company, which may offset the underperformance of Librela in 2025, and he views the company's valuation at 18.5 times its 2026 forward earnings as attractive [4] Company Overview - Zoetis Inc. is a leading global animal health company engaged in the discovery, development, manufacturing, and commercialization of medicines, vaccines, diagnostics, biodevices, genetic tests, and precision health solutions [5]

Core Insights - Zoetis (ZTS) shares have decreased by 24.8% year to date due to safety concerns regarding its monoclonal antibody therapies for osteoarthritis in dogs and cats, namely Librela and Solensia, which are significant revenue sources for the company [1][8] - The FDA raised alarms about Librela in late 2024 after adverse event reports indicated serious neurologic effects and other health issues in dogs, including seizures and even death [2][3] - An analysis revealed that dogs treated with Librela reported musculoskeletal adverse events at approximately nine times the rate of other osteoarthritis therapies, raising further safety concerns [4][5] - Consequently, Librela and Solensia experienced year-over-year sales declines in the second and third quarters of 2025, leading Zoetis to revise its full-year revenue guidance down to $9.4-$9.475 billion from a previous range of $9.45-$9.6 billion [6][8] Sales and Financial Performance - Librela and Solensia's sales declines have pressured Zoetis' stock, which has fallen 29.9% over the past year, contrasting with a mere 0.3% decline in the industry [7][8] - Despite the challenges in the osteoarthritis segment, Zoetis is seeing strong performance in its parasiticides and dermatology portfolios, which are helping to mitigate some of the revenue losses [9][12] Future Outlook - Zoetis is planning for a potential rebound in 2026 by expanding its product offerings, including new long-acting therapies for osteoarthritis, which aim to enhance treatment adherence and broaden market uptake [11][12] - The company has received approvals for new products like Lenivia and Portela, which are designed to complement existing therapies and provide veterinarians with more treatment options [11][12]

Summary of Zoetis Update / Briefing December 02, 2025 Company Overview - **Company**: Zoetis (NYSE: ZTS) - **Industry**: Animal Health - **Market Size**: Total addressable market is approximately $50 billion, expected to nearly double by 2035 [4][38] Core Insights and Arguments 1. **Innovation and R&D Commitment**: Zoetis emphasizes its strong commitment to research and development, which is crucial for pioneering new solutions in animal health [1][2][3] 2. **Market Dynamics**: The company identifies a new generation of pet owners driving demand for high-quality veterinary care, leading to increased medicalization and longer pet lifespans [5][8] 3. **Chronic Disease Management**: There is a growing demand for advanced therapies in chronic conditions such as chronic kidney disease, oncology, and cardiology, which are becoming more prevalent as pets age [9][28] 4. **Livestock Market Resilience**: The livestock sector is experiencing mid-single-digit growth, driven by global demand for safe, sustainable animal protein, with a shift from treatment to prevention [11][12] 5. **Technological Advancements**: The integration of AI, genetics, and precision health is enhancing R&D capabilities, allowing for earlier insights and more personalized medicine [6][15] Pipeline and Future Opportunities 1. **Diverse Pipeline**: Zoetis has a robust pipeline with 12 products identified as having blockbuster potential, focusing on unmet medical needs in chronic kidney disease, oncology, and cardiology [25][38] 2. **Regulatory Approvals**: The company anticipates significant regulatory approvals in the coming years, with a major market approval expected annually [42][24] 3. **Investment in R&D**: Over $5 billion has been invested in R&D since 2013, resulting in over 2,000 regulatory approvals in the past decade [13][14] Key Areas of Focus 1. **Chronic Kidney Disease (CKD)**: CKD is a major unmet need, with 80% of cats and 10% of dogs likely to develop the condition by age 13. Zoetis is developing seven assets to address this [31][50] 2. **Oncology**: Cancer is a leading cause of death in dogs, with Zoetis targeting lymphoma and melanoma through innovative therapies [34][52] 3. **Cardiology**: The company is developing novel therapeutics for cardiovascular diseases, aiming to provide better outcomes for affected pets [35] Market Trends and Consumer Behavior 1. **Pet Ownership Trends**: Rising pet ownership and increased spending on pet care are driving growth in the animal health market [37][43] 2. **Consumer Expectations**: There is a growing demand for transparency and sustainability in animal care, influencing product development and market strategies [6][11] Financial Performance and Growth Strategy 1. **Sustainable Growth**: Zoetis has delivered high single-digit growth over the past five years, with strong margins and returns on invested capital [41][42] 2. **Capital Allocation**: The company maintains a disciplined approach to capital allocation, ensuring that investments in innovation align with market needs [39][40] Additional Insights 1. **Global Reach and Scale**: Zoetis's extensive global network and manufacturing capabilities position it as a leader in the animal health industry [12][63] 2. **Collaboration and Partnerships**: The company leverages external collaborations to enhance its R&D efforts and expand its innovation pipeline [23][24] This summary encapsulates the key points from the Zoetis update, highlighting the company's strategic focus on innovation, market dynamics, and future growth opportunities in the animal health sector.