Zoetis, Inc. Class A (ZTS)

Over the past six months, Zoetis's stock price has seen a decline of 3.93%, and a 19.28% decrease over the past year. On August 5, 2025, Zoetis announced its Q2 2025 earnings, reporting better-than-expected EPS of $1.76 and revenue of $2.46 billion, but the stock fell by 3.8% due to concerns over potential side effects of Librela and Solensia and a 21% plunge in U.S. livestock product sales. In July 2025, Leerink Partners cut Zoetis from an "outperform" rating to a "market perform" rating and lowered their price target from $180.00 to $155.00. In August 2025, Piper Sandler increased their price target on Zoetis from $210.00 to $215.00 and maintained an "overweight" rating. On October 10, 2025, the European Medicines Agency's Committee for Veterinary Medicinal Products adopted a positive opinion for Zoetis's dog osteoarthritis pain treatment. On October 17, 2025, Health Canada approved Zoetis's three-month canine osteoarthritis pain therapy. On October 31, 2025, Zoetis declared a quarterly dividend of $0.50 per share, with an ex-dividend date of October 31, 2025, and payable on December 2, 2025. Zoetis is slated to announce its fiscal Q3 2025 results on November 4, 2025.

The animal health industry experiences seasonality, with the second quarter often being the strongest and the fourth quarter the weakest. Increased demand for pet parasiticides, osteoarthritis pain medication, and dermatology products contributed to a positive first quarter in 2024 for Zoetis. The growing prevalence of allergies and gastrointestinal diseases in companion animals also drives demand in the animal healthcare market.

Zoetis, Inc. is a global animal health company focused on discovering, developing, manufacturing, and commercializing animal health medicines, vaccines, and diagnostic products. It is the world's largest producer of medicine and vaccinations for pets and livestock, catering to cattle, swine, poultry, fish, sheep, dogs, cats, and horses. Its product categories include vaccines, anti-infectives, parasiticides, dermatology products, other pharmaceutical products, medicated feed additives, and animal health diagnostics.

Zoetis directly markets its products in approximately 45 countries and sells them in more than 100 countries, with operations outside the United States accounting for 50% of its total revenue. The company's global headquarters are located in Parsippany, New Jersey, U.S. Zoetis has a manufacturing network of twenty-eight sites across 11 countries, with many research and development (R&D) operations co-located with these manufacturing facilities. The company is also expanding its global capability center in Hyderabad, India, which will support global operations using advanced technology tools.

Zoetis has received positive recognition for its corporate responsibility and ethical practices, including being named one of Newsweek's Most Responsible Companies for 2024 and recognized by Ethisphere as one of the 2023 World's Most Ethical Companies. However, the company's reputation has faced challenges due to an FDA warning regarding potential side effects of its product Librela, a monoclonal antibody treatment for canine osteoarthritis.

Institutional investors hold approximately 92.80% of Zoetis stock, with major holders including Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Individual investors hold around 0.07% of the shares.