Zoetis, Inc. Class A (ZTS)

Zoetis's stock price experienced fluctuations and a decline over the past six months, decreasing by 22.13% from January 10, 2025, to January 9, 2026. The 52-week high was $177.40 on February 6, 2025, and the low was $115.25 on November 19, 2025. The stock was down 22.02% over the preceding 12 months as of January 5, 2026. A significant event was the Q3 2025 earnings release on November 4, 2025, where Zoetis trimmed its annual revenue forecast due to softer demand, leading to a sharp stock decline. Despite the revenue adjustment, adjusted earnings per share surpassed estimates, and the annual adjusted profit per share forecast was reaffirmed. In December 2025, Zoetis announced a $1.75 billion convertible senior notes offering and declared dividends for Q3 and Q4 2025. Analysts, including Morgan Stanley and Bank of America, lowered price targets and downgraded the stock due to competitive threats, softer clinic traffic, and uneven companion animal demand.

While explicit seasonality is not defined, demand for Zoetis's products fluctuates based on factors like economic conditions, consumer spending, and competition. The company experienced softer clinic traffic and uneven companion animal demand, with subdued demand for pet medicines and vaccines in Q3 2025 due to distributor hesitancy and consumer spending habits. Zoetis anticipated slower growth in the second half of 2025 due to prior-year comparisons and potential competition in dermatology. Companion animal products saw 2% growth, while livestock products had a stronger 10% increase in Q3 2025. Management's optimism for a 2026 rebound is tempered by cost-of-living pressures and demographic headwinds.

Zoetis, Inc. is a global animal health company focused on veterinary medicines and vaccines, originating as Pfizer's animal health division and becoming independent in 2013. It operates in the animal health industry, providing products for livestock (cattle, swine, poultry, sheep, and fish) such as vaccines, anti-infectives, and parasiticides, as well as nutritional additives and diagnostics. For companion animals (dogs, cats, and horses), Zoetis offers vaccines, parasiticides, dermatology products, and pain management solutions, along with biodevices, genetic tests, and precision animal health products.

Zoetis is headquartered in Parsippany, New Jersey, U.S., and has a global presence, selling products in over 100 countries with direct marketing in approximately 45 countries. In 2024, 50% of its revenue came from outside the United States. The company has manufacturing facilities in 11 countries and is focusing on geographic expansion, particularly in emerging markets like Asia and Latin America. Its revenue is segmented across United States and International geographical operations.

Zoetis maintains a strong brand reputation as an industry leader due to its comprehensive product lines and history of innovation. Its product pipeline reinforces its brand power. The company is working to rebuild trust in the companion animal segment through vet education, pet owner outreach, and third-party studies. The U.S. Department of Agriculture granted Zoetis conditional approval to deploy its bird flu vaccine in poultry amidst a 2025 outbreak, which could positively impact its reputation.

Zoetis's ownership is predominantly institutional, with institutional investors holding approximately 70.15% of the stock. Individual insiders own about 0.0808% of shares. The largest institutional holders include Vanguard Group Inc., BlackRock, Inc., and State Street Corp, along with other significant owners like Morgan Stanley, State Farm Mutual Automobile Insurance Co, Geode Capital Management, Llc, Wellington Management Group Llp, and Polen Capital Management Llc.