The Top 5 Analyst Questions From Zoetis’s Q4 Earnings Call

The Top 5 Analyst Questions From Zoetis’s Q4 Earnings Call

Jabin Bastian

Thu, February 19, 2026 at 2:38 PM GMT+9 4 min read

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ZTS

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Zoetis’ fourth quarter results were met with a muted market reaction, as headwinds in the U.S. companion animal segment and margin pressures offset revenue growth. Management pointed to lingering economic challenges among U.S. pet owners, who became more price sensitive and reduced routine veterinary visits, while persistent competition in dermatology and parasiticides weighed on growth. CEO Kristin Peck noted, “We continue to see some economic pressure on Gen Z and millennial pet owners, which has contributed to a decline in therapeutic visits and doses.”

Is now the time to buy ZTS? Find out in our full research report (it’s free).

Zoetis (ZTS) Q4 CY2025 Highlights:

**Revenue:** $2.39 billion vs analyst estimates of $2.37 billion (3% year-on-year growth, 0.8% beat)

**Adjusted EPS:** $1.48 vs analyst estimates of $1.40 (5.5% beat)

**Adjusted EBITDA:** $892 million vs analyst estimates of $928.9 million (37.4% margin, 4% miss)

**Adjusted EPS guidance for the upcoming financial year 2026** is $7.05 at the midpoint, beating analyst estimates by 3.3%

**Operating Margin:** 33.9%, in line with the same quarter last year

**Market Capitalization:** $54.51 billion

While we enjoy listening to the management’s commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Zoetis’s Q4 Earnings Call

**Michael Leonidovich Ryskin (Bank of America):** Asked about the level of conservatism in guidance given new competitive launches and the split between price and volume. CFO Wetteny Joseph noted the guidance includes scenarios for aggressive promotions and expects price to contribute 2% to 3% of growth.

**Erin Wilson Wright (Morgan Stanley):** Inquired whether U.S. companion animal growth is factored into guidance and the impact of accounting shifts. Joseph clarified that the U.S. market’s resilience and current macro trends are embedded in expectations, and accounting changes have only a minor impact.

**Christopher Thomas Schott (JPMorgan):** Asked about slower growth in Simparica Trio and the cadence of growth in 2026, particularly regarding deferred revenue normalization. Joseph stated that Simparica remains a key driver and that accounting-related timing changes are fully reflected in the guidance.

**Brandon Vazquez (William Blair):** Sought clarity on the sequential growth rhythm and whether pet owner weakness is due to macro factors or excessive price increases at vet clinics. CEO Kristin Peck pointed to high demand but noted that recent price hikes by clinics may have impacted visit frequency.

**Andrea Alfonso (UBS):** Probed on the magnitude of sales timing shifts and whether U.S. growth would remain flat. Joseph emphasized that any impact from operational shifts is minor and that U.S. growth should improve relative to the tougher comps in the first half of the year.

 






Story Continues  

Catalysts in Upcoming Quarters

In upcoming quarters, our analysts will focus on (1) the pace of recovery in U.S. companion animal volumes and any rebound in routine veterinary visits, (2) the ability of new product launches, especially in pain management and diagnostics, to gain traction, and (3) the extent to which competitive pressures in dermatology and parasiticides moderate. Additionally, we will monitor operational execution as Zoetis aligns its fiscal reporting globally.

Zoetis currently trades at $127.20, down from $128.67 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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