Equity Profile

ZTS

Zoetis Inc.

Health CarePharmaceuticals$33.3B

Aug4Tue

Pre-Earnings Brief

UpcomingQ2-2026Pre-Market9:00 AM EDT

Company Snapshot

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

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a crucial indicator of the company's profitability and will help investors gauge financial health this quarter.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and meet demand, which is essential for long-term success.

N/A

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

ZTS Q2-2026 Earnings Preview

Context

Company Snapshot

Zoetis Inc. is a leading global animal health company that develops and manufactures medicines and vaccines for pets and livestock. As a key player in the health care sector, Zoetis is vital for ensuring the health and productivity of animals, which is increasingly important as global food demand rises.

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, which was below analysts' expectations of $1.61, resulting in a significant stock drop of 21.50% the following day. This miss raised concerns about the company's growth trajectory.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Zoetis this quarter are cautious due to the recent earnings miss and the lack of analyst estimates. Investors are looking for signs of recovery and improved performance.

Bull Case

If Zoetis can demonstrate strong demand for its products and achieve better-than-expected EPS, it may restore investor confidence and drive the stock higher.

Bear Case

Conversely, if the company fails to meet expectations again or provides weak guidance, it could lead to further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected EPS for Q2-2026?

The EPS figure will be a key indicator of Zoetis's profitability and will heavily influence market sentiment.

How is the demand for animal health products trending?

Understanding market demand will help assess Zoetis's growth potential and ability to navigate current challenges.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Zoetis to recover from its recent earnings miss, as the demand for animal health products remains strong despite recent challenges.

Supporting Evidence

The company's historical EPS beat rate of 88% suggests it often exceeds expectations.

Options are pricing a 9% move, which may be excessive given the company's track record of stability in demand.

Insider activity, while limited, shows some buying interest that could indicate confidence in the company's future.

Key Risk

If Zoetis can show strong demand and a positive EPS surprise, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis this quarter revolves around whether Zoetis can bounce back from its recent earnings miss and demonstrate strong demand in the animal health market.

Bull Confirmed If

A positive EPS surprise of at least 5% would confirm the bull case and suggest a recovery in demand.

Bear Confirmed If

An EPS miss of more than 5% would confirm the bear case and raise concerns about the company's growth prospects.

Pre-Earnings Positioning

Options Market

Implied Move

±9.01%

Historical Avg

±7.7%

Pricing cheap

The options market is pricing in a significant move of about 9% in either direction, indicating uncertainty surrounding the upcoming 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 rich setup in Health Care

n=30

Fade rate: 14 of 29 (48%)

This setup has occurred 30 times across Health Care in the last 2 years. 14 of 29 faded and 15 held — no strong directional bias after the initial reaction. The average absolute 1-day move is 3.7%, with a raw directional average of -1.6% (modestly negative historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoetis beats expectations, history suggests a potential average one-day move of +3.1%, confirming a recovery narrative.

In-Line / Cautious

If results are in line with cautious expectations, the stock may see muted movement as investors await further clarity.

Miss

A miss could lead to a significant decline, with history suggesting an average one-day move of -21.50% following an earnings miss.

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 or market expansions.
2Details on cost management strategies and their impact on margins.
3Insights into competitive pressures in the animal health sector.
4Management's outlook on global demand trends for animal health products.
5Responses to questions about the recent earnings miss and steps being taken to improve performance.

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Company Snapshot

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

Key Metrics to Watch

EPS (Earnings Per Share)

EPS is a crucial indicator of the company's profitability and will help investors gauge financial health this quarter.

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and meet demand, which is essential for long-term success.

N/A

1 more metrics, 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

Overall expectations for Zoetis this quarter are cautious due to the recent earnings miss and the lack of analyst estimates. Investors are looking for signs of recovery and improved performance.

Bull Case

If Zoetis can demonstrate strong demand for its products and achieve better-than-expected EPS, it may restore investor confidence and drive the stock higher.

Bear Case

Conversely, if the company fails to meet expectations again or provides weak guidance, it could lead to further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the expected EPS for Q2-2026?

The EPS figure will be a key indicator of Zoetis's profitability and will heavily influence market sentiment.

How is the demand for animal health products trending?

Understanding market demand will help assess Zoetis's growth potential and ability to navigate current challenges.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for Zoetis to recover from its recent earnings miss, as the demand for animal health products remains strong despite recent challenges.

Supporting Evidence

The company's historical EPS beat rate of 88% suggests it often exceeds expectations.

Options are pricing a 9% move, which may be excessive given the company's track record of stability in demand.

Insider activity, while limited, shows some buying interest that could indicate confidence in the company's future.

Key Risk

If Zoetis can show strong demand and a positive EPS surprise, it could challenge the current cautious consensus.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core thesis this quarter revolves around whether Zoetis can bounce back from its recent earnings miss and demonstrate strong demand in the animal health market.

Bull Confirmed If

A positive EPS surprise of at least 5% would confirm the bull case and suggest a recovery in demand.

Bear Confirmed If

An EPS miss of more than 5% would confirm the bear case and raise concerns about the company's growth prospects.

Pre-Earnings Positioning

Options Market

Implied Move

±9.01%

Historical Avg

±7.7%

Pricing cheap

The options market is pricing in a significant move of about 9% in either direction, indicating uncertainty surrounding the upcoming 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 rich setup in Health Care

n=30

Fade rate: 14 of 29 (48%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Zoetis beats expectations, history suggests a potential average one-day move of +3.1%, confirming a recovery narrative.

In-Line / Cautious

If results are in line with cautious expectations, the stock may see muted movement as investors await further clarity.

Miss

A miss could lead to a significant decline, with history suggesting an average one-day move of -21.50% following an earnings miss.

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 or market expansions.
2Details on cost management strategies and their impact on margins.
3Insights into competitive pressures in the animal health sector.
4Management's outlook on global demand trends for animal health products.
5Responses to questions about the recent earnings miss and steps being taken to improve performance.