Equity Profile

ZTS

Zoetis Inc.

Health CarePharmaceuticals$33.3B

May7Thu

Post-Earnings Recap

ReportedQ1-2026Pre-Market7:00 AM EDT

Zoetis Inc. Misses on EPS, Stock Down 21.5%

Metric	Actual	Expected	Surprise
EPS	$1.53	$1.62	-5.09%
Revenue	N/A	$2.3B	N/A

management commentary, guidance changes, and full analysis available with Pro.

Zoetis Inc. Misses on EPS, Stock Down 21.5%

Key Numbers

Metric	Actual	Expected	Surprise
EPS	$1.53	$1.62	-5.09%
Revenue	N/A	$2.3B	N/A

Management Commentary

Tone: Unknown

No transcript is on record, and the analysis is based on numerical results only.

What It Means

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.

Company Snapshot

Zoetis Inc. (ZTS) is a leading global animal health company that develops and manufactures veterinary vaccines and medicines....

Key Metrics to Watch

EPS

Earnings per share (EPS) is a key indicator of profitability and will show how well Zoetis is managing costs and generating income.

$1.62

Revenue

Total revenue gives insight into the company's sales performance and market demand for its products.

$2.3B

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

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.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+4.50%

Avg Stock Reaction

-6.18%

Last Quarter Recap

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.

Management Promises & Guidance

Expectations

Wall Street Expectations

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

$1.62

Earnings per share (EPS) is a key indicator of profitability and will show how well Zoetis is managing costs and generating income.

Revenue

$2.3B

Total revenue gives insight into the company's sales performance and market demand for its products.

Expectations

Two Questions That Matter

The print will turn on these two things.

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.

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.

Edge

What the Street Is Missing

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.

Edge

Thesis-Break Levels

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.

Pre-Earnings Positioning

Options Market

Implied Move

±9.92%

Historical Avg

±7.7%

Pricing rich

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 ±7.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.7%

30d HV

25.1%

Calls (34K)P/C Ratio: 1.39Puts (91K)

Preparation

Post-Print Playbook

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.

Preparation

Congressional Activity

House & Senate STOCK Act disclosures over the trailing 6 months.

Trades

2 buys·1 sell

Members

House only

Est. Notional

$3,003.00–$45,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
3

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches and their expected impact on revenue.
2Management's commentary on market conditions and competitive landscape.
3Details on cost management strategies and their effect on margins.
4Guidance on international sales growth, particularly in emerging markets.
5Insights into R&D investments and future pipeline developments.

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Company Snapshot

Zoetis Inc. (ZTS) is a leading global animal health company that develops and manufactures veterinary vaccines and medicines....

Key Metrics to Watch

EPS

Earnings per share (EPS) is a key indicator of profitability and will show how well Zoetis is managing costs and generating income.

$1.62

Revenue

Total revenue gives insight into the company's sales performance and market demand for its products.

$2.3B

Wall Street expectations, options signals, track record, and call prep available with Pro.

Original Pre-Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+4.50%

Avg Stock Reaction

-6.18%

Last Quarter Recap

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.

Management Promises & Guidance

Expectations

Wall Street Expectations

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

$1.62

Earnings per share (EPS) is a key indicator of profitability and will show how well Zoetis is managing costs and generating income.

Revenue

$2.3B

Total revenue gives insight into the company's sales performance and market demand for its products.

Expectations

Two Questions That Matter

The print will turn on these two things.

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.

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.

Edge

What the Street Is Missing

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.

Edge

Thesis-Break Levels

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.

Pre-Earnings Positioning

Options Market

Implied Move

±9.92%

Historical Avg

±7.7%

Pricing rich

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 ±7.7% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.7%

30d HV

25.1%

Calls (34K)P/C Ratio: 1.39Puts (91K)

Preparation

Post-Print Playbook

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.

Preparation

Congressional Activity

House & Senate STOCK Act disclosures over the trailing 6 months.

Trades

2 buys·1 sell

Members

House only

Est. Notional

$3,003.00–$45,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
3

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches and their expected impact on revenue.
2Management's commentary on market conditions and competitive landscape.
3Details on cost management strategies and their effect on margins.
4Guidance on international sales growth, particularly in emerging markets.
5Insights into R&D investments and future pipeline developments.