Animal health firm Zoetis Inc. (NYSE:ZTS) on Tuesday reported a second-quarter 2025 adjusted earnings per share of $1.76, up from $1.56 a year ago, beating the consensus of $1.61.
The company reported sales of $2.50 billion, up 4% year over year, beating the consensus of $2.41 billion. On an organic operational basis, revenue for the second quarter of 2025 increased 8% compared with the second quarter of 2024.
Revenue in the U.S. segment was $1.4 billion, up 4% and 7% on an organic operational basis.
Also Read: Phibro’s Feed Play Pays Off: JPMorgan Upgrades On Zoetis Deal Boost
Sales of the company’s companion animal products increased 9%, driven primarily by Simparica Trio, the company’s flea, tick, and heartworm combination product, as well as its key dermatology portfolio, including Apoquel, Apoquel Chewable, and Cytopoint.
Broad-based growth across the remainder of the companion animal portfolio, including vaccines and diagnostics, was partially offset by a decline in the company’s monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela for dogs, and Solensia for cats.
Sales of livestock products declined 21% in the quarter, largely due to the divestiture of the medicated feed additive product portfolio and related assets.
On an organic operational basis, sales of livestock products decreased 2% in the quarter due to the timing of supply of ceftiofur products and competition for Draxxin, partially offset by growth across the livestock portfolio, primarily in vaccines.
Guidance
Zoetis raised its fiscal 2025 revenues guidance from $9.425 billion–$9.575 billion to $9.45 billion-$9.6 billion, compared to the consensus of $9.49 billion.
The animal health company also raised the 2025 adjusted earnings per share from $6.20-$6.30 to $6.30-$6.40, compared to the consensus of $6.23.
The company expects adjusted net income of $2.825 billion-$2.875 billion compared to the prior guidance of $2.775 billion-$2.825 billion.
The company says the guidance reflects foreign exchange rates and the impact of enacted tariffs.
With an eye on future growth, William Blair noted that sentiment around Librela, a key product in Zoetis’s portfolio, remains subdued. However, they argue that the product’s decline in the U.S. market may not significantly impact overall performance, particularly given the robust performance in the U.S. companion animal segment, which saw strong growth. The momentum in this area appears sufficient to offset the challenges posed by Librela’s underperformance.
Brandon Vazquez, an analyst at William Blair, commented, “Investors have been questioning how Zoetis can sustain growth within its long-range plan amid rising competition and struggles with Librela. We think second-quarter results and raised full-year guidance should give incremental confidence that this is not the case.”
Zoetis saw its shares initially rise following the release of its stronger-than-expected second-quarter results, alongside an upward revision of its fiscal 2025 EPS and revenue guidance. However, despite the positive report and raised outlook, Zoetis stock has since retraced its earlier gains.
Price Action: ZTS stock is trading lower by 2.62% to $147.84 at last check Tuesday.
Read Next:
Photo by JHVEPhoto via Shutterstock
