Abstract
Zoetis will report its quarterly results on February 12, 2026 Pre-Market. The preview evaluates consensus expectations for revenue, gross margin, net margin, and adjusted EPS, compares them with the last reported quarter, and synthesizes institutional views to outline likely performance drivers and key watch items for February 12, 2026.
Market Forecast
For the current quarter, the market’s consolidated projections point to revenue of USD 2.36 billion with an estimated year-over-year growth of 2.61%, EBIT of USD 0.83 billion with an estimated year-over-year growth of 0.83%, and adjusted EPS of USD 1.40 with an estimated year-over-year growth of 4.81%. While formal guidance on margins is not provided in the collected forecast, our synthesis suggests a steady gross profit margin profile near recent levels and a net margin supported by mix stability and disciplined operating costs. The core business is expected to see stable demand across parasiticides, vaccines, and dermatology, with ongoing momentum in companion-animal end markets and resilient production-animal trends. The most promising segment appears to be Parasiticides, which contributed USD 564.00 million last quarter, supported by sustained pet compliance and product innovation; year-over-year growth specifics were not disclosed.
Last Quarter Review
In the last reported quarter, Zoetis delivered revenue of USD 2.40 billion, a gross profit margin of 71.58%, GAAP net profit attributable to the parent company of USD 0.72 billion, a net profit margin of 30.04%, and adjusted EPS of USD 1.70, with year-over-year adjusted EPS growth of 7.60%. A key highlight was margin resilience, with gross margin holding above 70.00% amid disciplined pricing and favorable product mix. The main business composition featured Parasiticides at USD 564.00 million, Vaccines at USD 496.00 million, and Dermatology at USD 472.00 million, underscoring diversified growth drivers; explicit year-over-year growth by segment was not disclosed.
Current Quarter Outlook
Main Business Trajectory
The core franchise across parasiticides, vaccines, and dermatology is set to anchor performance this quarter. Revenue visibility remains consistent, with the market forecasting USD 2.36 billion and an implied modest expansion in adjusted EPS to USD 1.40, indicating healthy operating leverage despite mixed end-market signals. Gross profit margin, previously at 71.58%, is likely to remain elevated given the high-value nature of Zoetis’s portfolio, pricing discipline, and steady utilization across veterinary channels. Net profit margin stability at around the 30.04% last quarter mark suggests disciplined expense management and scale efficiencies, mitigating inflationary inputs and FX noise. Investors will look for confirmation that demand normalization in companion animals is sustained, while production-animal dynamics reflect steady vaccination and therapeutic uptake.
Most Promising Segment Dynamics
Parasiticides stands out as the most promising segment, supported by steady demand across canine and feline applications and high compliance rates. Last quarter’s USD 564.00 million contribution signals segment scale and share retention, which should underpin this quarter’s earnings cadence. The segment’s seasonal profile typically aligns with preventative care cycles, reinforcing consistent sell-through in veterinary clinics and retail channels. With innovation and lifecycle management supporting brand durability, pricing is poised to remain constructive, reinforcing gross margin strength. Any incremental uptake from new product iterations or expanded indications would serve as a catalyst for top-line resilience and provide margin accretion through mix.
Key Stock Price Drivers This Quarter
The path of adjusted EPS, forecast at USD 1.40, will be closely correlated with mix and cost discipline, making gross margin performance the pivotal swing factor. Commentary on inventory levels and channel health will be important in gauging restocking dynamics versus underlying demand strength, particularly in North America companion-animal markets. Management’s visibility on production-animal trends and any indications of regional demand shifts will also influence sentiment, as will updates on pipeline progress and lifecycle expansion in dermatology and vaccines. Operating expense cadence, including R&D and SG&A, will be scrutinized for signals of investment pacing relative to revenue growth, while FX translation may modestly impact reported figures.
Analyst Opinions
Across the previews collected, the majority stance is cautiously bullish, with institutions pointing to consistent margin quality and dependable demand in core therapeutic classes. References highlight support for topline stability near USD 2.36 billion and adjusted EPS tracking to USD 1.40, with expectations of slight year-over-year improvement and EBIT holding near USD 0.83 billion. Analysts emphasize the durability of the parasiticides franchise and the resilience of vaccines, indicating limited downside risk barring unexpected volume softness or pronounced FX headwinds. Several noted that visibility into companion-animal channels remains constructive, reinforcing confidence in gross margin performance and net margin stability. The bullish camp expects reaffirmation of full-year momentum signals and looks for incremental color on pipeline assets to substantiate medium-term growth assumptions.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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