Zoetis Inc. · NYSE:ZTS
Zoetis — Q1 2026 Earnings Presentation
26 slides from Zoetis's earnings presentation, May 7, 2026
Slide 1: First Quarter 2026 Financial Results
First Quarter 2026 Financial Results May 7, 2026
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;
Slide 3: Zoetis Q1 Performance
FIRST QUARTER FINANCIAL RESULTS Zoetis Q1 Performance REVENUE ADJ. NET INCOME2 ADJ. DILUTED EPS2 $2.3B $646M $1.53 0% 1% 7% organic operational1 organic operational1 organic operational1 YoY YoY YoY (2)% Volume | 2% Price KEY HIGHLIGHTS Companion Animal Librela stabilized Livestock delivered 12% Dia
Slide 4: Advancements in Innovation
FIRST QUARTER FINANCIAL RESULTS Advancements in Innovation Expected Zoetis continued to advance innovation through lifecycle Approvals 2026 and geographic expansions in the quarter; Received its first major market approval for the year Next-Gen Chemistry Dx1 An antibiotic for the treatment of bacter
Slide 5: First Quarter Segment Highlights
FIRST QUARTER FINANCIAL RESULTS First Quarter Segment Highlights1 United States U.S. SEGMENT U.S. COMPANION ANIMAL U.S. LIVESTOCK REVENUE REVENUE REVENUE $1.1B $0.9B $0.2B 8% decline 11% decline YOY 7% growth YOY Year over Year (YOY) International INT'L. SEGMENT INT'L. COMPANION ANIMAL INT'L. LIVEST
Slide 6: Reported to Organic Operational Results
FIRST QUARTER FINANCIAL RESULTS Reported to Organic Operational Results Understanding First Quarter 2026 Underlying Results First Quarter Reported Foreign Organic (millions of dollars) 2026 2025 Change Exchange Operational1 Divestitures Operational2 U.S. Companion animal $865 $973 (11)% —% (11)% —%
Slide 7: Fiscal Year Alignment
FIRST QUARTER FINANCIAL RESULTS Fiscal Year Alignment Effective January 1, 2026, Zoetis eliminated the First quarter 2026 revenue in the International one-month financial reporting lag by its subsidiaries Segment was positively impacted by approximately operating outside of the U.S. and adjusted its
Slide 8: Revised 2026 Guidance
FIRST QUARTER FINANCIAL RESULTS Revised 2026 Guidance Revenue Adj. Net Income1 $9,680M - $9,960M $2,870M - $2,950M Adj. Diluted EPS1 Organic Operational Growth2 $6.85 - $7.00 2.0% - 5.0% 2.0% - 6.0% Revenue Adj. Net Income1 KEY ASSUMPTIONS Our guidance is now incorporating Captures current macro-pri
Slide 9: Taking Action to Maintain Leadership & Drive Growth
FIRST QUARTER FINANCIAL RESULTS Taking Action to Maintain Leadership & Drive Growth Sharpening Accelerating External Business Capital Allocation Commercial Science-to-Scale Development & Cost Execution Innovation Opportunities Management Targeted DTC activity, Shortening time from Strategic pursuit
Slide 10: Simparica Franchise
FIRST QUARTER FINANCIAL RESULTS Simparica Franchise Simparica Franchise Revenue (Millions of dollars) • Simparica franchise revenue declined 1%1 • U.S. impacted by softer vet clinic traffic, lower 1Q Revenue YoY compliance trends, and a more competitive market backdrop (1)%1 • Despite a modest year
Slide 11: Key Dermatology Franchise
FIRST QUARTER FINANCIAL RESULTS Key Dermatology Key Derm Franchise Revenue Franchise (Millions of dollars) • Key dermatology franchise revenue declined 1Q Revenue YoY 11%1 • Pet owner price sensitivity and competition (11)%1 had a compounding effect on performance in the quarter $400 $377 $347 • Few
Slide 12: Osteoarthritis (OA) Pain mAb Franchise
FIRST QUARTER FINANCIAL RESULTS Osteoarthritis (OA) OA Pain mAb Franchise Revenue Pain mAb Franchise (Millions of dollars) • Revenue declined 8%1, driven by Librela and 1Q Revenue YoY partially offset by growth in Solensia • U.S. Librela sales have stabilized sequentially, (8)%1 a meaningful indicat
Slide 13: Companion Animal Diagnostics
FIRST QUARTER FINANCIAL RESULTS Companion Animal Companion Animal Diagnostics Revenue Diagnostics (Millions of dollars) • Companion Animal diagnostics revenue grew 1Q Revenue YoY 10%1 • International was a clear standout, reflecting 10%1 strong geographic expansion and $120 $113 increasing adoption
Slide 14: Livestock
FIRST QUARTER FINANCIAL RESULTS Livestock Livestock Revenue ex MFA (Millions of dollars) • Revenue increased 12%1, with broad-based growth across geographies and species, driven by both price and volume 1Q Revenue YoY • Favorable underlying market conditions supported by strong global protein demand
Slide 15: Financial Results and Guidance
FIRST QUARTER FINANCIAL RESULTS Financial Results and Guidance 15
Slide 16: Income Statement Highlights
FIRST QUARTER FINANCIAL RESULTS Income Statement Highlights First Quarter (millions of dollars, except per share data) 2026 2025 Change Revenue $2,262 $2,198 3% Reported Net Income 601 602 —% Reported Diluted Earnings Per Share $1.42 $1.34 6% Adjusted Net Income1 646 633 2% Adjusted Diluted Earnings
Slide 17: Adjusted Income Statement Highlights
FIRST QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights First Quarter Foreign (millions of dollars) 2026 2025 Change Exchange Operational1 Revenue $2,262 $2,198 3% 4% (1)% Adjusted Cost of Sales2 638 617 3% 8% (5)% as a percent of revenue3 28.2% 28.1% NA NA NA Adjusted SG&A Expenses2 58
Slide 18: U.S. Segment Performance
FIRST QUARTER FINANCIAL RESULTS U.S. Segment Performance First Quarter (millions of dollars) 2026 2025 Change Revenue $1,090 $1,183 (8)% Companion Animal 865 973 (11)% Livestock 225 210 7% Cost of Sales 194 199 (3)% Gross Profit 896 984 (9)% Gross Margin 82.2% 83.2% NA Operating Expenses 199 205 (3)
Slide 19: International Segment Performance
FIRST QUARTER FINANCIAL RESULTS International Segment Performance First Quarter Foreign (millions of dollars) 2026 2025 Change Exchange Operational1 Revenue $1,149 $985 17% 8% 9% Companion Animal 654 568 15% 8% 7% Livestock 495 417 19% 7% 12% Cost of Sales 334 295 13% 10% 3% Gross Profit 815 690 18%
Slide 20: International Segment Performance
FIRST QUARTER FINANCIAL RESULTS International Segment Performance First Quarter Foreign (millions of dollars) 2026 2025 Change Exchange Operational1 Total International $1,149 $985 17% 8% 9% Australia 89 79 13% 11% 2% Brazil 90 81 11% 12% (1)% Canada 73 70 4% 4% —% Chile 38 35 9% 6% 3% China 63 55 1
Slide 21: Revised Financial Guidance
FIRST QUARTER FINANCIAL RESULTS Revised Financial Guidance Based on current operating environment and presentation of financials for Fiscal Year Alignment Selected Line Items (millions of dollars, except per share amounts) Full Year 2026 as of May 7, 2026 Revenue $9,680 to $9,960 Organic operational
Slide 22: Q&A
Q&A 20
Slide 23: Appendix
Appendix 20
Slide 24: Reconciliation Of Reported Growth To Non-GAAP Financial Measures
FIRST QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non- GAAP Financial Measures First Quarter Foreign Organic (millions of dollars) 2026 2025 Change Exchange Operational1 Divestitures Operational2 Revenue by Product Category Key Dermatology 347 377 (8)% 3% (11)% —% (11)% Key Dermat
Slide 25: Reconciliation Of GAAP To Non-GAAP Financial Measures
FIRST QUARTER FINANCIAL RESULTS Reconciliation Of GAAP To Non-GAAP Financial Measures Reported Results to Organic Operational Results First Quarter Foreign Organic (millions of dollars, except per share data) 2026 2025 Change Exchange Operational1 Divestitures Operational2 Adjusted diluted EPS 1.53
Slide 26: Zoetis
zoetis