Post-earnings recap
Reported
Thu, May 7, 2026
EPS actual
$1.53
EPS est.
$1.61
EPS surprise
-5.09%
1-day move
-21.50%
Zoetis Inc. reported earnings that fell short of expectations, particularly in EPS, which contributed to a significant drop in stock price. The stock fell by 21.5% following the announcement, reflecting investor disappointment. The lack of revenue figures and guidance further adds to uncertainty about the company's future performance.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $1.53 | $1.62 | -5.09% |
| Revenue | N/A | $2.3B | N/A |
No transcript is on record, and the analysis is based on numerical results only.
Zoetis Inc. (ZTS) is a leading global animal health company that develops and manufactures veterinary vaccines and medicines. With a market cap of $47 billion, it plays a crucial role in the healthcare sector, focusing on improving the health and well-being of animals, which is increasingly important as global food production demands rise.
Last quarter
In Q4 2025, Zoetis reported an EPS of $1.48, beating estimates by 5.87%. However, the stock fell 2.35% the following day, indicating market skepticism despite the earnings beat.
EPS beat streak
1Q
EPS beat rate
88%
Avg EPS surprise
+4.09%
Avg 1-day reaction
-6.44%
Analysts expect Zoetis to continue its trend of beating earnings estimates, with a consensus EPS of $1.62 for Q1 2026. However, the stock's recent performance suggests that even a beat may not lead to positive price action.
Bull case
If Zoetis delivers strong earnings and revenue growth, it could indicate robust demand for its products, leading to a positive market reaction and potential stock price appreciation.
Bear case
Conversely, if the company fails to meet expectations or provides weak guidance, it could reinforce concerns about market saturation and lead to a further decline in stock price.
Key metrics to watch
EPS
$1.62Earnings per share (EPS) is a key indicator of profitability and will show how well Zoetis is managing costs and generating income.
Revenue
$2.3BTotal revenue gives insight into the company's sales performance and market demand for its products.
The print will turn on these.
Q1
Will Zoetis achieve an EPS of at least $1.62?
This figure is critical as it represents the consensus estimate, and beating it could boost investor confidence.
Q2
What guidance will management provide for revenue growth in 2026?
Future revenue guidance will be essential for assessing the company's growth prospects and market demand.
—
Est. EPS
$-0.76
Est. Rev
$192M
Impl. Move
±7.5%
Why consensus could be wrong
The consensus may underestimate the impact of new product launches and market expansion efforts that could drive higher revenue growth than anticipated.
Supporting evidence
Past earnings surprises have consistently outperformed estimates, suggesting potential for continued growth.
The options market indicates a higher expected move, reflecting uncertainty that could favor a positive surprise.
Recent insider trading activity suggests confidence in the company's future performance.
Key risk
If revenue growth significantly exceeds expectations, it could challenge the current bearish sentiment.
Pre-commit to what would confirm each case.
The market is debating Zoetis's ability to sustain growth in a competitive landscape, making these thresholds pivotal.
Bull confirmed if
An EPS of $1.65 or higher, coupled with strong revenue growth, would confirm the bullish sentiment.
Bear confirmed if
An EPS below $1.56 or weak revenue guidance would support a bearish outlook.
What the market is pricing for the move.
Implied Move
±9.92%
Historical Avg
±7.4%
The options market is pricing in a significant move around the earnings report, suggesting that traders anticipate volatility.
Options are pricing ±10.2% while ZTS has averaged ±7.4% over the last 8 prints — setup is pricing rich.
ATM IV
0.7%
30d HV
25.1%
Smart-money positioning from the most recent 13F filings.
Institutional
100.37%
of float
Insider
0.16%
of float
Holders
2,032
institutions
Top Holders· as of Jun 2026
Blackrock Inc.
39,430,181 sh · $2.8B
9.54%
10.8%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Zoetis beats expectations, history suggests the stock could rise around 3% on average, confirming a positive outlook.
In line / cautious
If results are in line with expectations, the stock may experience muted movement as investors await further clarity from management.
Miss
A miss could lead to a decline of around 2.8% on average, reinforcing bearish sentiment.
House and Senate STOCK Act disclosures over the trailing 6 months.
Trades
3
2 buys·1 sell
Members
2
House only
Est. Notional
$3,003.00–$45,000.00
disclosed dollar ranges
Most Active Members
2 trades
The lines on the call that would change the story.
Vanguard Capital Management LLC
26,027,984 sh · $1.9B
6.30%
-0.2%
Vanguard Portfolio Management LLC
23,860,445 sh · $1.7B
5.77%
-0.4%
State Street Corporation
19,667,723 sh · $1.4B
4.76%
1.8%
State Farm Mutual Automobile Insurance Co
15,892,903 sh · $1.1B
3.85%
Flat
13F filings updated quarterly. Position deltas show change in shares vs. the prior quarter.
Mixed
1 trade
Net buying
Recent Transactions
Traded Jul 17, 2026 · disclosed Sep 4, 2026
$1,001.00–$15,000.00
Traded Jun 16, 2026 · disclosed Jul 2, 2026
$1,001.00–$15,000.00
Traded Jun 9, 2026 · disclosed Jul 15, 2026
$1,001.00–$15,000.00
Filed 30–45+ days after the trade. Treat as positional context, not a leading indicator. Amounts are SEC-mandated dollar ranges, not exact values.