Zoetis Sinks 20% After Earnings Miss and Guidance Cut

Overview

• Zoetis shares fell 20% to $88.94 Thursday, the S&P 500's worst performer, putting the stock near seven-year lows and 29% lower for 2026.
• The animal-health company reported Q1 adjusted earnings of $1.53 on $2.26 billion in sales, missing Wall Street forecasts of $1.60 and $2.3 billion.
• CEO Kristin Peck said pet owners pulled back on spending, which led to fewer vet visits, an 8% U.S. revenue decline, and an 11% drop in U.S. companion-animal products.
• International revenue rose about 17% to $1.1 billion after a fiscal calendar change pulled roughly $100 million into the quarter, and Stifel said results look weaker once that one-time boost is removed.
• Zoetis lowered 2026 guidance, now targeting adjusted EPS of $6.85 to $7.00 and revenue of $9.68 billion to $9.96 billion, and it plans tighter commercial execution and cost control.