Post-earnings recap
Reported
Thu, Aug 6, 2026
EPS actual
$1.87
EPS est.
$1.84
EPS surprise
+1.41%
1-day move
+3.87%
Zoetis reported a slight earnings beat, which positively impacted the stock, leading to a 3.87% increase. However, the company faces challenges in the companion animal segment, with significant revenue declines. The strong performance in livestock and diagnostics provides some resilience, but the revised guidance indicates a cautious outlook for the remainder of the year.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $1.87 | $1.85 | +1.41% |
| Revenue | $2.5B | $2.5B | — |
| Adjusted Net Income | $781M | — | — |
| U.S. Companion Animal Revenue Change | -11% | — | — |
| U.S. Livestock Revenue Change | +23% | — | — |
Management acknowledged challenges in the companion animal market while highlighting growth in livestock revenue. They expressed caution regarding future performance due to competitive pressures.
Competitive pressures in the companion animal market are intensifying.
Livestock and diagnostics segments showed strong performance.
Zoetis Inc. (ZTS) is a leading global animal health company that develops and manufactures medicines and vaccines for pets and livestock. With a market cap of $31 billion, Zoetis plays a crucial role in the healthcare of animals, which is increasingly important as pet ownership and livestock management continue to grow worldwide.
Last quarter
In Q1 2026, Zoetis reported an EPS of $1.53, falling short of the expected $1.61, resulting in a significant stock drop of 21.5% the following day. The company continues to face challenges in meeting analyst expectations.
EPS beat streak
1Q
EPS beat rate
88%
Avg EPS surprise
+4.09%
Avg 1-day reaction
-6.44%
Analysts expect Zoetis to report an EPS of $1.85 and revenue of $2.5 billion for Q2 2026, reflecting cautious optimism after a disappointing previous quarter. Investors are looking for signs of recovery and growth in the company's product lines.
Bull case
If Zoetis can exceed EPS and revenue expectations, it may signal a strong rebound in demand for its products, potentially leading to a positive shift in investor sentiment.
Bear case
Conversely, if the company misses expectations again, it could raise concerns about its growth prospects and lead to further declines in stock price.
Key metrics to watch
EPS
$1.85Earnings per share is a key indicator of the company's profitability and is closely watched by investors.
Revenue
$2.5BRevenue figures provide insight into the company's overall sales performance and market demand for its products.
The print will turn on these.
Q1
Will Zoetis achieve an EPS of $1.85 or higher this quarter?
A strong EPS performance is crucial for restoring investor confidence after the recent miss, and it could signal a turnaround in the company's fortunes.
Q2
What are the revenue figures for key product segments?
Understanding revenue contributions from different segments will help assess the company's growth areas and overall market demand.
—
Est. EPS
$3.08
Est. Rev
$7.2B
Impl. Move
±4.0%
Why consensus could be wrong
The consensus may be underestimating Zoetis' ability to rebound after a disappointing quarter, as the company has historically shown resilience in recovering from setbacks.
Supporting evidence
The options market is pricing a smaller move than the historical average, suggesting a potential undervaluation of the stock's volatility.
Zoetis has a strong track record of beating EPS estimates, with an 88% success rate over the last eight quarters.
Recent trends in pet ownership and livestock management indicate a growing market for Zoetis' products.
Key risk
If Zoetis reports revenue growth in key segments, it could challenge the current bearish sentiment.
Pre-commit to what would confirm each case.
The market is closely watching Zoetis for signs of recovery after a disappointing previous quarter, making this earnings report critical.
Bull confirmed if
An EPS of $1.90 or higher would confirm strong demand and operational efficiency.
Bear confirmed if
An EPS below $1.77 would indicate ongoing struggles and could lead to further stock declines.
What the market is pricing for the move.
Implied Move
±3.68%
Historical Avg
±7.68%
The options market is pricing in a modest move of about 3.68%, suggesting that investors are uncertain about the upcoming earnings results.
Options are pricing a smaller move than the stock has averaged historically, indicating a potentially undervalued setup.
ATM IV
0.5%
30d HV
77.9%
Cross-company pattern from 30 similar setups.
Prior-quarter miss + options pricing cheap setup in Health Care
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).
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 see an average one-day move of around -3.99%, confirming a positive shift in sentiment.
In line / cautious
If results are in line with expectations, the stock may react cautiously, reflecting uncertainty about future growth.
Miss
A miss could lead to a significant drop, with historical data indicating an average one-day move of -21.50% following such outcomes.
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.