Zoetis Inc. (ZTS) AI Stock Analysis

Zoetis Inc. discovers, develops, manufactures, and commercializes medicines, vaccines, and diagnostic products for animals worldwide. It addresses both livestock and companion animals across species such as cattle, swine, poultry, fish, sheep, dogs, cats, and horses. Its portfolio encompasses vaccines, anti-infectives, parasiticides, pain management, sedation, dermatology, and oncology solutions, alongside medicated feed additives. Zoetis also delivers diagnostic technologies, including blood and urine analyzers, point-of-care diagnostics, and reference laboratory kits, as well as biodevices, genetics tests, and precision health solutions. Products are distributed globally to veterinarians, livestock producers, retail outlets, and third-party veterinary distributors.

Between FY2021 and FY2025, revenue expanded from $7.78B to $9.47B, achieving a 5-year revenue CAGR of 7.2%. In FY2025, revenue grew 2.3% with net income reaching $2.67B and EPS rising to $6.42. Gross margin reached 70.5% in FY2025, while operating margin expanded to 38.0%. Over the trailing twelve months, revenue reached $9.53B and EPS stood at $6.08. In the latest quarter ended June 30, 2026, quarterly revenue fell 0.2% year-over-year, while quarterly earnings grew 1.2%. Analysts expect revenue of $9.25B and EPS of $6.21 for the fiscal year ending December 31, 2026, representing an EPS decline of 3.1%.

As of June 30, 2026, Zoetis held $1.68B in cash and short-term investments against $9.24B in total debt, resulting in net debt of $7.56B. Shareholders' equity was $3.15B, reflecting a debt-to-equity ratio of 2.93 and a current ratio of 3.08. In FY2025, the company produced $2.90B in operating cash flow and $2.28B in free cash flow. Capital expenditures totaled $621.0M. Zoetis returned capital to shareholders via $3.23B in share buybacks and $889.0M in dividends paid, contributing to a 5-year share count change of -12.2%.

At $79.38 per share, Zoetis carries a market capitalization of $32.80B and an enterprise value of $37.16B. The stock trades at a trailing P/E of 13.1x and a forward P/E of 12.0x, both below the median of its S&P 500 Healthcare peers at 28.9x and 16.6x, respectively. Its EV to EBITDA ratio is 9.2x compared to the peer median of 15.7x, while its price-to-sales matches the peer median at 3.4x. Over the past year, ZTS declined 43.5%, significantly lagging the S&P 500 (SPY) return of 16.8%.

Zoetis pays a forward annual dividend of $2.12 per share, translating to a dividend yield of 2.67% and a payout ratio of 32.2%. Dividends are distributed quarterly and have been paid for 14 consecutive years. Over the past five years, the dividend grew at an annualized rate of 20.1%. The last ex-dividend date shown is October 30, 2026.

Consensus ratings include 4 Strong Buys, 3 Buys, and 10 Holds, with zero Sell or Strong Sell recommendations. The mean price target of $94.43 represents an upside of 19.0% over the last close of $79.38. Zoetis beat EPS estimates in 3 of the last 4 quarters. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $6.21 on revenue of $9.25B. The next earnings release date is November 5, 2026.

This page is an AI-written research summary of Zoetis Inc. (ZTS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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