Zoetis cuts outlook as pet owners curb vet spending
Livestock growth fails to offset weak companion-animal sales
8 May 2026
1 minute read
By: Animal health company Zoetis cut its full-year profit forecast on Thursday after reporting first-quarter results that missed Wall Street estimates, blaming weaker US demand and reduced spending by cost-conscious pet owners, reported Reuters.
Shares fell around 12% in premarket trading.
Veterinary clinic visits declined in the quarter while competition intensified in key pet care categories including dermatology and parasiticides. "The first quarter unfolded in a more challenging operating environment than we anticipated," said CEO Kristin Peck.
The company posted quarterly adjusted earnings of $1.53 per share on revenue of $2.26 billion, falling short of analyst expectations of $1.61 and $2.31 billion respectively. US revenue dropped 8% to $1.09 billion, with companion-animal sales down 11%, hurt by softer demand, competitive pressure and lower sales of its osteoarthritis treatment Librela.
Zoetis lowered its 2026 adjusted EPS forecast to a range of $6.85–$7.00, down from $7.00–$7.10, with the midpoint falling below the analyst consensus of $7.02. Its annual revenue outlook was also trimmed to $9.68–$9.96 billion from $9.83–$10.03 billion.
Not all segments struggled. International revenue climbed 17% to $1.15 billion on strong demand for parasiticides, vaccines and diagnostics, while livestock sales grew 15% to $720 million, supported by cattle, poultry and swine markets.
