Zoetis Q2 2026: Livestock and International Momentum Fails to Offset Companion Animal Decline as Full-Year Guidance Cut

Zoetis reported second-quarter 2026 revenue of $2.5 billion — flat year-on-year and down 1% organically — as persistent companion animal headwinds, softer vet clinic traffic and intensifying competition drove an 11% decline in US companion animal sales, prompting a significant cut to full-year guidance while livestock, diagnostics and international operations delivered meaningful growth.

Zoetis reported Q2 2026 revenue of $2.5 billion, flat on a reported basis and down 1% organically, as the company navigated what CEO Kristin Peck described as a “more pressured Companion Animal market.” US segment revenue fell 7% to $1.3 billion, with companion animal sales declining 11% due to lower clinic visits, pet owner price sensitivity, and heightened competition , particularly across the key dermatology franchise and Simparica Trio. Generic competition on Cerenia and Convenia, alongside lower Librela sales, added further pressure.

International delivered a contrasting performance, with revenue rising 8% reported and 6% organically to $1.2 billion. Companion animal sales grew 5% organically, led by parasiticides including Simparica Trio, alongside contributions from OA pain products Lenivia and Portela. Livestock grew 6% organically internationally and surged 23% in the US, supported by beef cattle economics, vaccine demand tied to poultry disease outbreaks, and supply timing.

On the pipeline, Zoetis received European Commission approval for Poulvac Procerta HVT-ND during the quarter and completed the acquisition of VitalRADS, a veterinary teleradiology platform, advancing its end-to-end diagnostics strategy. The company also secured emergency use authorization for Dectomax in multiple species for New World screwworm prevention and treatment.

Full-year 2026 guidance was cut materially. Zoetis now guides for revenue of $9.12–$9.32 billion , down from $9.68–$9.96 billion , with organic operational growth of (3)% to (1)%. Adjusted diluted EPS guidance was reduced to $6.15–$6.25 from $6.85–$7.00, reflecting the sustained companion animal pressure and competitive headwinds Zoetis expects to persist through the remainder of the year.