Zoetis Inc. · NYSE:ZTS

Zoetis — Q2 2026 Earnings Presentation

24 slides from Zoetis's earnings presentation, Aug 6, 2026

  1. Slide 1: Second Quarter 2026 Financial Results

    Second Quarter 2026 Financial Results August 6, 2026

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance; future guidance, future operating models, R&D costs; timing and likelihood of success;

  3. Slide 3: Zoetis Performance

    SECOND QUARTER FINANCIAL RESULTS Zoetis Performance Key Messages Q2 results reflected a Strength of our Adapting commercial Continued advancing the Revised FY'26 guidance, more pressured diversified portfolio, strategy, defending portfolio and expanding reflecting persistence of Companion Animal inc

  4. Slide 4: Q2 Segment Highlights

    SECOND QUARTER FINANCIAL RESULTS Q2 Segment Highlights1 United States SEGMENT REVENUE COMPANION ANIMAL REVENUE LIVESTOCK REVENUE $1.3B $1.0B $0.2B (7)% YoY (11)% YoY 23% YoY International SEGMENT REVENUE COMPANION ANIMAL REVENUE LIVESTOCK REVENUE $1.2B $0.7B $0.5B 6% YoY 5% YoY 6% YoY 1 Organic oper

  5. Slide 5: Taking Action to Maintain Leadership & Drive Growth

    SECOND QUARTER FINANCIAL RESULTS Taking Action to Maintain Leadership & Drive Growth Sharpening • Appointed new U.S. Commercial Leadership Commercial • Expanded targeted promotion and rebate levers to defend share in priority franchises Execution • Reallocated A&P to highest-ROI programs • Received

  6. Slide 6: Key Dermatology Franchise

    SECOND QUARTER FINANCIAL RESULTS Key Dermatology Franchise Q2 Franchise Revenue YoY (Millions of dollars) • Category softened across geographies, reflecting weaker end-market demand and intensified promotion-led competition (16)%1 • Alternative channel growth moderated, indicating that category pres

  7. Slide 7: Simparica Franchise

    SECOND QUARTER FINANCIAL RESULTS Simparica Franchise Q2 Franchise Revenue YoY (Millions of dollars) • Simparica Trio continues to redefine the standard of care and remains the leading canine parasiticide 0%1 • Category impacted by affordability pressures, channel dynamics, and heightened promotion-l

  8. Slide 8: Osteoarthritis (OA) Pain mAb Franchise

    SECOND QUARTER FINANCIAL RESULTS Osteoarthritis (OA) Pain mAb Franchise Q2 Franchise Revenue YoY (Millions of dollars) • Canine OA pain declined against a strong comparison and fewer pain- related clinic visits, despite International growth (3)%1 • Affordability pressure on premium therapies continu

  9. Slide 9: Companion Animal Diagnostics

    SECOND QUARTER FINANCIAL RESULTS Companion Animal Diagnostics Q2 Revenue YoY (Millions of dollars) • Category demand driven by sustained urgent and emergency care • Growth supported by innovative technologies, including 12%1 Vetscan Imagyst and OptiCell, and increasing adoption across emerging marke

  10. Slide 10: Livestock

    SECOND QUARTER FINANCIAL RESULTS Livestock Q2 Revenue YoY (Millions of dollars) • Favorable underlying market conditions supported by sustained global demand for healthy, affordable protein 11%1 • U.S. delivered double-digit growth, driven by favorable producer economics, improved supply, and elevat

  11. Slide 11: Advancements in Innovation

    SECOND QUARTER FINANCIAL RESULTS Advancements in Innovation Zoetis continued to advance innovation through lifecycle and geographic expansions in the quarter Poulvac® Procerta® HVT-ND Dectomax® / Dectomax ® -CA1 Received marketing authorization from the European Commission. The first parasite contro

  12. Slide 12: From Near-Term Execution to Long-Term Market Creation

    SECOND QUARTER FINANCIAL RESULTS From Near-Term Execution to Long-Term Market Creation Expected Approvals 2026 Pioneering Emerging Frontiers TAMs4 Next-Gen Chemistry Dx1 Chronic #1 cause of death in cats, without treatments $3.0 - 4.0B that directly impact disease. Prevalence Kidney estimated at ~8%

  13. Slide 13: Revised 2026 Guidance

    SECOND QUARTER FINANCIAL RESULTS Revised 2026 Guidance Revenue Adj. Net Income1 $9,120M - $9,320M $2,570M - $2,620M Adj. Diluted EPS1 Organic Operational Growth2 $6.15 - $6.25 (3)% - (1)% Revenue (9)% - (5)% Adj. Net Income1 Key Assumptions Persistence of softer end-market demand, High end assumes c

  14. Slide 14: Financial Results and Guidance

    SECOND QUARTER FINANCIAL RESULTS Financial Results and Guidance 14

  15. Slide 15: Reported to Organic Operational Results

    SECOND QUARTER FINANCIAL RESULTS Reported to Organic Operational Results Understanding Second Quarter 2026 Underlying Results Second Quarter Reported Foreign Organic 2026 2025 Divestitures (millions of dollars) Change Exchange Operational1 U.S. Companion animal $1,044 $1,176 (11)% —% —% (11)% Livest

  16. Slide 16: Adjusted Income Statement Highlights

    SECOND QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights Second Quarter Reported Foreign Organic 2026 2025 Operational1 Divestitures (millions of dollars, except per share data) Change Exchange Operational2 Revenue $2,468 $2,474 —% 2% (2)% (1)% (1)% Adjusted Cost of Sales3 669 661 1% 3%

  17. Slide 17: Capital Allocation Priorities

    SECOND QUARTER FINANCIAL RESULTS Capital Allocation Priorities Reinvest in Our Business • ~$350M invested in our industry-leading R&D capabilities YTD, supporting our future pipeline • ~$225M in Capital Expenditures across manufacturing, R&D, and IT initiatives YTD External Business Development Oppo

  18. Slide 18: Revised Financial Guidance

    SECOND QUARTER FINANCIAL RESULTS Revised Financial Guidance Based on softer end-market, macro-driven sensitivity, and promotion-led competitive pressure The guidance reflects foreign exchange rates as of July 21, 2026 and Selected Line Items includes the assumed impacts as a result of fluctuations i

  19. Slide 19: Appendix

    Appendix . zoetis

  20. Slide 20: Reconciliation Of Reported Growth To Non-GAAP Financial Measures

    SECOND QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures Second Quarter Reported Foreign Organic 2026 2025 Divestitures (millions of dollars) Change Exchange Operational1 Revenue by Product Category Key Dermatology 395 469 (16)% —% —% (16)% Key Dermatology (i

  21. Slide 21: International Revenue Performance

    SECOND QUARTER FINANCIAL RESULTS International Revenue Performance Second Quarter Reported Foreign Organic 2026 2025 Divestitures (millions of dollars) Change Exchange Operational1 Total International $1,173 $1,085 8% 3% (1)% 6% Australia 94 83 13% 11% —% 2% Brazil 103 93 11% 11% —% —% Canada 72 71

  22. Slide 22: U.S. Segment Performance

    SECOND QUARTER FINANCIAL RESULTS U.S. Segment Performance Second Quarter 2026 2025 Reported Change (millions of dollars) Revenue $1,266 $1,356 (7)% Companion Animal 1,044 1,176 (11)% Livestock 222 180 23% Cost of Sales 214 208 3% Gross Profit 1,052 1,148 (8)% Gross Margin 83.1% 84.7% NA Operating Ex

  23. Slide 23: International Segment Performance

    SECOND QUARTER FINANCIAL RESULTS International Segment Performance Second Quarter Reported Foreign 2026 2025 Operational1 (millions of dollars) Change Exchange Revenue $1,173 $1,085 8% 3% 5% Companion Animal 664 614 8% 3% 5% Livestock 509 471 8% 4% 4% Cost of Sales 340 321 6% 4% 2% Gross Profit 833

  24. Slide 24: Zoetis

    zoetis

Zoetis — Q2 2026 Earnings Presentation on 6ix