Equity Profile

ZTS

Zoetis Inc.

Health CarePharmaceuticals$31.3B

Aug4Tue

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

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

Key Metrics to Watch

EPS

Earnings per share is a crucial indicator of profitability and will show how well the company is managing its costs and revenue.

$1.85

Revenue

Total revenue reflects the overall sales performance and market demand for Zoetis' products.

$2.5B

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

ZTS Q2-2026 Earnings Preview

Context

Company Snapshot

Zoetis Inc. (ZTS) is a leading global animal health company that develops and manufactures veterinary medicines and vaccines for livestock and pets. As a key player in the healthcare sector, Zoetis addresses the growing demand for animal health products, driven by trends in pet ownership and livestock management.

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 Q1-2026, Zoetis reported an EPS of $1.53, falling short of the expected $1.61, which resulted in a significant stock drop of 21.5% the following day. This miss raised concerns about the company's growth trajectory and market conditions.

Management Promises & Guidance

Expectations

Wall Street Expectations

Analysts expect Zoetis to report an EPS of $1.85 and revenue of $2.5 billion for Q2-2026, reflecting a cautious optimism following the previous quarter's miss. The market is closely watching for signs of recovery in sales and profitability.

Bull Case

If Zoetis can exceed the EPS estimate and show strong revenue growth, it could signal a rebound in demand for its products, potentially boosting investor confidence and stock price.

Bear Case

Conversely, if the company fails to meet expectations again, it may raise further doubts about its growth strategy and lead to additional stock declines.

Key Metrics to Watch

EPS

$1.85

Earnings per share is a crucial indicator of profitability and will show how well the company is managing its costs and revenue.

Revenue

$2.5B

Total revenue reflects the overall sales performance and market demand for Zoetis' products.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoetis achieve an EPS of at least $1.85?

Meeting or exceeding this EPS target is crucial for restoring investor confidence after the last quarter's miss.

What are the revenue growth trends in key product segments?

Understanding revenue performance in specific areas will provide insight into the company's market position and future growth potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus is overly cautious, expecting only modest growth, while Zoetis may be experiencing stronger demand in key segments that could lead to a significant upside surprise.

Supporting Evidence

Historical data shows that Zoetis has an 88% EPS beat rate, indicating a strong track record of exceeding expectations.

The options market is pricing a smaller move than the historical average, suggesting that the potential for a larger surprise is not fully accounted for.

Key Risk

If revenue growth in key segments exceeds expectations, it could challenge the current cautious outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's results are critical for assessing whether Zoetis can regain momentum after a disappointing previous quarter.

Bull Confirmed If

An EPS of $1.90 or higher, along with revenue exceeding $2.6 billion, would confirm a strong recovery and growth outlook.

Bear Confirmed If

An EPS below $1.77 and revenue below $2.4 billion would reinforce concerns about the company's performance and strategy.

Pre-Earnings Positioning

Options Market

Implied Move

±3.68%

Historical Avg

±7.7%

Pricing cheap

The options market is pricing in a relatively modest move, suggesting that investors are uncertain about significant changes in stock price following the earnings report.

Options are pricing ±3.7% while ZTS has averaged ±7.7% over the last 8 prints — setup is pricing cheap.

Detail

ATM IV

0.5%

30d HV

77.9%

Calls (177K)P/C Ratio: 1.05Puts (644K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing cheap setup in Health Care

n=30

Fade rate: 13 of 29 (45%)

This setup has occurred 30 times across Health Care in the last 2 years. 13 of 29 faded and 16 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 3.6%, with a raw directional average of -1.3% (modestly negative historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoetis beats expectations, history suggests the stock could see an average one-day move of around -3.99%, indicating a cautious market reaction despite positive results.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further clarity from management commentary.

Miss

A miss could lead to a significant drop, with historical averages showing a potential one-day move of -21.50%, reflecting heightened investor concern.

Preparation

Congressional Activity

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

Trades

0 buys·1 sell

Members

House only

Est. Notional

$1,001.00–$15,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
1

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches and their expected impact on revenue.
2Insights into market demand trends for both livestock and pet health products.
3Management's commentary on cost management strategies and their effects on margins.
4Details on geographic performance, particularly in emerging markets.
5Any changes in guidance for the remainder of the fiscal year.

See the full picture

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Company Snapshot

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

Key Metrics to Watch

EPS

Earnings per share is a crucial indicator of profitability and will show how well the company is managing its costs and revenue.

$1.85

Revenue

Total revenue reflects the overall sales performance and market demand for Zoetis' products.

$2.5B

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

ZTS Q2-2026 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

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If Zoetis can exceed the EPS estimate and show strong revenue growth, it could signal a rebound in demand for its products, potentially boosting investor confidence and stock price.

Bear Case

Conversely, if the company fails to meet expectations again, it may raise further doubts about its growth strategy and lead to additional stock declines.

Key Metrics to Watch

EPS

$1.85

Earnings per share is a crucial indicator of profitability and will show how well the company is managing its costs and revenue.

Revenue

$2.5B

Total revenue reflects the overall sales performance and market demand for Zoetis' products.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoetis achieve an EPS of at least $1.85?

Meeting or exceeding this EPS target is crucial for restoring investor confidence after the last quarter's miss.

What are the revenue growth trends in key product segments?

Understanding revenue performance in specific areas will provide insight into the company's market position and future growth potential.

Edge

What the Street Is Missing

Why consensus could be wrong

The consensus is overly cautious, expecting only modest growth, while Zoetis may be experiencing stronger demand in key segments that could lead to a significant upside surprise.

Supporting Evidence

Historical data shows that Zoetis has an 88% EPS beat rate, indicating a strong track record of exceeding expectations.

The options market is pricing a smaller move than the historical average, suggesting that the potential for a larger surprise is not fully accounted for.

Key Risk

If revenue growth in key segments exceeds expectations, it could challenge the current cautious outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's results are critical for assessing whether Zoetis can regain momentum after a disappointing previous quarter.

Bull Confirmed If

An EPS of $1.90 or higher, along with revenue exceeding $2.6 billion, would confirm a strong recovery and growth outlook.

Bear Confirmed If

An EPS below $1.77 and revenue below $2.4 billion would reinforce concerns about the company's performance and strategy.

Pre-Earnings Positioning

Options Market

Implied Move

±3.68%

Historical Avg

±7.7%

Pricing cheap

The options market is pricing in a relatively modest move, suggesting that investors are uncertain about significant changes in stock price following the earnings report.

Options are pricing ±3.7% while ZTS has averaged ±7.7% over the last 8 prints — setup is pricing cheap.

Detail

ATM IV

0.5%

30d HV

77.9%

Calls (177K)P/C Ratio: 1.05Puts (644K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing cheap setup in Health Care

n=30

Fade rate: 13 of 29 (45%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoetis beats expectations, history suggests the stock could see an average one-day move of around -3.99%, indicating a cautious market reaction despite positive results.

In-Line / Cautious

If results are in line with expectations, the stock may experience muted movement as investors await further clarity from management commentary.

Miss

A miss could lead to a significant drop, with historical averages showing a potential one-day move of -21.50%, reflecting heightened investor concern.

Preparation

Congressional Activity

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

Trades

0 buys·1 sell

Members

House only

Est. Notional

$1,001.00–$15,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
1

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new product launches and their expected impact on revenue.
2Insights into market demand trends for both livestock and pet health products.
3Management's commentary on cost management strategies and their effects on margins.
4Details on geographic performance, particularly in emerging markets.
5Any changes in guidance for the remainder of the fiscal year.