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With a market cap of $31.2 billion, Zoetis Inc. (ZTS) is the world's leading animal health company, dedicated to advancing animal care through innovative medicines, vaccines, diagnostics, biopharmaceuticals, and digital solutions. With nearly 75 years of scientific expertise and a presence in over 100 countries, Zoetis empowers veterinarians, livestock producers, and pet owners by pioneering solutions to predict, prevent, detect, and treat animal illness.
The Parsippany, New Jersey-based company is slated to announce its fiscal Q2 2026 results before the market opens on Thursday, Aug. 6. Ahead of the event, analysts expect Zoetis to report an adjusted EPS of $1.85, up 5.1% from $1.76 in the year-ago quarter. It has surpassed Wall Street's bottom-line estimates in three of the past four quarterly reports while missing on another occasion.
For fiscal 2026, analysts predict the animal health company to report adjusted EPS of $6.87, a 7.2% rise from $6.41 in fiscal 2025.
Shares of Zoetis have fallen 51.2% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 21.3% increase and the State Street Health Care Select Sector SPDR ETF's (XLV) 19.4% gain over the same period.
Zoetis shares tumbled 21.5% on May 7 after the company lowered its full-year 2026 guidance, forecasting adjusted EPS of $6.85 - $7 and revenue of $9.68 billion - $9.96 billion, both below market expectations. The weaker outlook followed a challenging Q1 2026, with U.S. revenue declining 8% year-over-year to $1.1 billion and U.S. companion animal product sales falling 11% due to intense competition and softer demand, despite total revenue increasing 3% year-over-year to $2.3 billion. Also, while adjusted EPS grew 9% to $1.53, it missed consensus estimates, reinforcing investor concerns.
Analysts' consensus rating on ZTS stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 18 analysts covering the stock, eight recommend a "Strong Buy,” one has a "Moderate Buy" rating, and nine give a "Hold" rating. The average analyst price target for Zoetis is $110.19, indicating a potential upside of 47.8% from the current levels.
