Zoetis (ZTS)

NYSEHealth CareDrug Manufacturers - Specialty & GenericSnapshot 2026-10-15

$79.38+1.22%

Close 2026-10-16 · 1-day change

Read the published Living FV report summary

Investment OutlookAs of Oct 15, 2026

What could strengthen or challenge Zoetis’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

-0.9%

+10% or more+5%0%−5%−10% or less

6.46 → 6.41 EPS · FY ending Dec 31, 2027 · 11 analysts

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

Change in the same fiscal period’s mean EPS estimate from Sep 15, 2026 to Oct 15, 2026: (new ÷ prior − 1). Contributor count changed from 11 to 11; this is not the number of analysts revising. Source: FMP consensus snapshots. The ±10% axis is a display range.

Living FV™

Living Fair Value by QuarterlyIQ

A valuation that evolves as the business changes.

A published Living FV snapshot is not available yet. The valuation workflow remains discoverable; a market target cannot supply the missing evidence.

View Living FV report and workflow

What the Thesis Depends On

4 key conditions need to be met for the investment thesis to play out.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Maintain disciplined cost management to protect profits	A primary condition in Zoetis's published investment case. The stated target is stabilize or improve operating income near $758 million quarterly.	Broken	operating income declines below $700 million quarterly	Operating income: $937M FY2026-Q2; GAAP. Published target: stabilize or improve operating income near $758 million quarterly. Target period is not explicitly aligned with this observation. Source published Aug 6, 2026937,000,000 USD · source valueSource reportLast status assessment Oct 15, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: stock_quarterly_financials_fmp. Reference: 2026-Q2. Source status: unverified. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 6 of last 6 quarters. Management emphasized disciplined cost management while financials show SG&A expenses decreased from $614M in 2025-Q4 to $592M in 2026-Q2 (-4%), and R&D expenses increased modestly from $166M to $173M (+4%). This reflects a balanced approach to cost discipline and investment, consistent with management's stated priority. Delivery assessment Oct 15, 2026
Achieve EPS near guidance	A primary condition in Zoetis's published investment case. The stated target is EPS >= $6.85.	Under Pressure	EPS falls below $6.5	Diluted EPS: $1.65 per share FY2026-Q2; GAAP. Published target: EPS >= $6.85. Target period is not explicitly aligned with this observation. Source published Aug 6, 20261.65 USD/share · source valueSource reportLast status assessment Oct 15, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: ea8a2768-f189-4b8c-ad63-18732590cd79. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement.
Grow international segment revenue strongly	A supporting condition in Zoetis's published investment case. The stated target is >= 17% YoY growth in international revenue.	Intact	international revenue growth falls below 10% YoY	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 15, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 6 of last 6 quarters. International segment revenue grew from approximately $1.0 billion in 2025-Q1 to $1.2 billion in 2026-Q2, reflecting consistent growth in companion animal and livestock products internationally. This trajectory matches management's emphasis on expanding international revenue through geographic and product expansion. Delivery assessment Oct 15, 2026
Sustain revenue growth near guidance level	A primary condition in Zoetis's published investment case. The stated target is >= $9.82 billion annual revenue.	Broken	annual revenue falls below $9.4 billion	Revenue: $2.468B FY2026-Q2; GAAP. Published target: >= $9.82 billion annual revenue. Target period is not explicitly aligned with this observation. Source published Aug 6, 20262,468,000,000 USD · source valueSource reportLast status assessment Oct 15, 2026 Measurement source consolidated · GAAP FY2026-Q2 · Period ending Jun 30, 2026 Source: company_financial_results. Reference: ea8a2768-f189-4b8c-ad63-18732590cd79. Source status: eligible. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 6 of last 6 quarters. Zoetis consistently emphasized advancing its innovation pipeline with more than 12 potential blockbuster candidates, including significant approvals such as Lenivia and Portela for OA pain providing up to three months relief. The company reported revenue growth in international segments and continued product launches, reflecting delivery aligned with management's stated innovation-driven growth priority. Delivery assessment Oct 15, 2026

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2027 · fiscal year ending 2027-12-31 · fmp

FY2027 EPS$6.41

$7.37 → $6.41 · observed estimates

FY2027 revenue$9.40B

$10.12B → $9.40B · observed estimates

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2027 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-07-24	$7.37	$10,119,774,416	12 / 14
2026-07-25	$7.39	$10,149,485,380	19 / 18
2026-07-26	$7.39	$10,149,485,380	19 / 18
2026-07-27	$7.37	$10,118,159,376	12 / 14
2026-07-28	$7.37	$10,115,974,223	12 / 14
2026-07-29	$7.39	$10,147,664,420	19 / 18
2026-07-30	$7.39	$10,147,664,420	19 / 18
2026-07-31	$7.35	$10,088,422,505	12 / 14
2026-08-01	$7.35	$10,088,422,505	12 / 14
2026-08-02	$7.39	$10,147,664,420	19 / 18
2026-08-03	$7.35	$10,088,422,505	12 / 14
2026-08-04	$7.35	$10,088,422,505	12 / 14
2026-08-05	$7.35	$10,088,422,505	12 / 14
2026-08-06	$7.35	$10,088,422,505	12 / 14
2026-08-08	$7.35	$10,088,422,505	12 / 14
2026-08-09	$7.35	$10,088,422,505	12 / 14
2026-08-10	$7.35	$10,088,422,505	12 / 14
2026-08-12	$6.73	$9,557,042,100	18 / 17
2026-08-13	$7.35	$10,088,422,505	12 / 14
2026-08-14	$7.35	$10,088,422,505	12 / 14
2026-08-15	$7.35	$10,088,422,505	12 / 14
2026-08-16	$7.35	$10,088,422,505	12 / 14
2026-08-17	$7.35	$10,088,422,505	12 / 14
2026-08-18	$7.35	$10,088,422,505	12 / 14
2026-08-19	$7.35	$10,088,422,505	12 / 14
2026-08-20	$6.52	$9,478,122,794	12 / 13
2026-08-21	$6.52	$9,478,122,794	12 / 13
2026-08-22	$6.52	$9,478,122,794	12 / 13
2026-08-23	$6.52	$9,478,122,794	12 / 13
2026-08-24	$6.52	$9,478,122,794	12 / 13
2026-08-25	$6.46	$9,429,194,222	12 / 13
2026-08-26	$6.46	$9,429,194,222	12 / 13
2026-08-27	$6.46	$9,429,194,222	12 / 13
2026-08-28	$6.46	$9,429,194,222	12 / 13
2026-08-29	$6.46	$9,429,194,222	11 / 13
2026-08-30	$6.46	$9,429,194,222	11 / 13
2026-08-31	$6.46	$9,429,194,222	11 / 13
2026-09-01	$6.46	$9,429,194,222	11 / 13
2026-09-02	$6.46	$9,429,194,222	11 / 13
2026-09-03	$6.46	$9,429,194,222	11 / 13
2026-09-04	$6.46	$9,429,194,222	11 / 13
2026-09-05	$6.46	$9,429,194,222	11 / 13
2026-09-06	$6.46	$9,429,194,222	10 / 13
2026-09-07	$6.46	$9,429,194,222	10 / 13
2026-09-08	$6.46	$9,429,194,222	10 / 13
2026-09-09	$6.46	$9,429,194,222	11 / 13
2026-09-10	$6.46	$9,429,194,222	11 / 13
2026-09-11	$6.46	$9,429,194,222	11 / 13
2026-09-12	$6.46	$9,429,194,222	11 / 13
2026-09-13	$6.46	$9,429,194,222	11 / 13
2026-09-14	$6.46	$9,429,194,222	11 / 13
2026-09-15	$6.46	$9,429,194,222	11 / 13
2026-09-16	$6.46	$9,429,194,222	11 / 13
2026-09-17	$6.46	$9,429,194,222	11 / 13
2026-09-18	$6.46	$9,429,194,222	11 / 13
2026-09-19	$6.46	$9,429,194,222	11 / 13
2026-09-20	$6.46	$9,429,194,222	11 / 13
2026-09-21	$6.46	$9,429,194,222	11 / 13
2026-09-22	$6.46	$9,429,194,222	11 / 13
2026-09-23	$6.46	$9,429,194,222	11 / 13
2026-09-24	$6.46	$9,429,194,222	11 / 13
2026-09-25	$6.46	$9,429,194,222	11 / 13
2026-09-26	$6.46	$9,429,194,222	11 / 13
2026-09-27	$6.46	$9,429,194,222	10 / 12
2026-09-28	$6.46	$9,429,194,222	10 / 12
2026-09-29	$6.47	$9,436,393,967	10 / 12
2026-09-30	$6.47	$9,436,393,967	10 / 12
2026-10-01	$6.47	$9,446,324,736	10 / 12
2026-10-02	$6.47	$9,446,324,736	10 / 12
2026-10-03	$6.48	$9,455,901,659	10 / 12
2026-10-04	$6.48	$9,455,901,659	10 / 12
2026-10-05	$6.48	$9,455,901,659	10 / 12
2026-10-06	$6.48	$9,455,901,659	10 / 12
2026-10-07	$6.48	$9,455,901,659	10 / 12
2026-10-08	$6.48	$9,455,901,659	10 / 12
2026-10-09	$6.48	$9,455,901,659	10 / 12
2026-10-10	$6.48	$9,455,901,659	10 / 12
2026-10-11	$6.48	$9,455,901,659	10 / 12
2026-10-12	$6.48	$9,455,901,659	10 / 12
2026-10-13	$6.48	$9,455,897,944	10 / 12
2026-10-14	$6.41	$9,396,595,785	11 / 12
2026-10-15	$6.41	$9,396,595,785	11 / 12

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold
2026-05-01	13	9
2026-06-01	11	9
2026-07-01	11	9
2026-08-01	12	9
2026-09-01	9	9
2026-10-01	8	10

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 8 Buy / Strong Buy · 10 Hold · 0 Sell / Strong Sell

0 upgrades0 downgrades0 maintains

Recent actions · Sep 16–Oct 15 · 0 recorded

Price-target changes

30 days

Individual price-target observations are unavailable.

0 raises · 0 cuts · 0 unchanged · 0 without a comparable prior

How this is measured

Sep 16, 2026–Oct 15, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Maintain disciplined cost management to protect profitsPublished status: Broken
Achieve EPS near guidancePublished status: Under Pressure
Grow international segment revenue stronglyDirect metric needs a verified mapping
Sustain revenue growth near guidance levelPublished status: Broken

Next proof point

Nov 5, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

4 of 4 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

1.1%Typical daily move · historical

Downside history

-52.6%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Zoetis outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 10, 2026

What kind of bet this is

This investment represents a durable compounder with a focus on innovation and international growth. The current thesis state is intact, supported by strong recent financial performance and ongoing management priorities.

What's priced into Zoetis

The market currently prices ZTS as cheap compared to its peers, with a low expectations gap. This suggests that investors are not fully accounting for the company's potential upside from new product approvals and international expansion.

What the fundamentals likely do

Management's execution on revenue growth and international expansion is likely to continue, as they have consistently emphasized these priorities. However, there is an elevated risk due to the potential for guidance cuts and economic conditions impacting the sector.

What Zoetis hinges on

The thesis hinges on the company's ability to maintain strong execution and navigate potential economic headwinds. Key factors include the performance of sector bellwethers and the overall health of the job market, which could influence investor sentiment.