Zoetis

ZTS Q1 2025 Earnings

Reported May 6, 2025 at 7:03 AM ET · SEC Source

Q1 25 EPS

$1.48

BEAT +5.79%

Est. $1.40

Q1 25 Revenue

$2.22B

BEAT +1.24%

Est. $2.19B

vs S&P Since Q1 25

-53.6%

TRAILING MARKET

ZTS -24.7% vs S&P +29.0%

Market Reaction

Did ZTS Beat Earnings? Q1 2025 Results

Zoetis opened 2025 on firm footing, posting first-quarter adjusted diluted EPS of $1.48, a 5.79% beat against the $1.40 consensus, while revenue of $2.22 billion edged ahead of the $2.19 billion estimate and rose 1.4% year over year. The headline fig… Read more Zoetis opened 2025 on firm footing, posting first-quarter adjusted diluted EPS of $1.48, a 5.79% beat against the $1.40 consensus, while revenue of $2.22 billion edged ahead of the $2.19 billion estimate and rose 1.4% year over year. The headline figures, however, understated the company's underlying momentum; strip out foreign exchange headwinds and the impact of its medicated feed additive portfolio divestiture, and organic operational revenue grew 9%, powered largely by robust companion animal demand for Simparica Trio, the Apoquel and Cytopoint dermatology franchise, and the monoclonal antibody pain therapies Librela and Solensia. That portfolio strength has kept analyst sentiment firmly constructive on the stock relative to animal health peers. Looking ahead, Zoetis raised its full-year 2025 revenue guidance to $9.43 billion to $9.58 billion and lifted adjusted diluted EPS guidance to $6.20 to $6.30, though it trimmed the top of its organic adjusted net income growth range to 5% to 7%, acknowledging enacted tariffs as a fresh cost headwind management expects to navigate through its diversified, essential-nature business model.

Key Takeaways

  • Strong demand for innovative companion animal products including Simparica Trio, Apoquel, Cytopoint, Librela, and Solensia
  • U.S. companion animal sales increased 8% driven by parasiticides, dermatology, and OA pain products
  • International companion animal sales grew 10% operationally
  • Diagnostic products benefited from favorable year-ago comparison due to channel strategy change
  • International livestock grew 12% organically driven by cattle products in Brazil and emerging markets and salmon vaccine sales
  • Gross margin improvement with adjusted cost of sales declining to 27.9% from 29.3% of revenue
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ZTS YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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ZTS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25
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ZTS Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Zoetis achieved strong results for the first quarter of 2025, driven by demand for our innovative products and our focus on delivering for our customers. It is a testament to our colleagues' unwavering dedication and excellence in agility that we reported organic operational revenue growth of 9%.”

— Kristin Peck, Q1 2025 Earnings Press Release