Zoetis

Zoetis lowered its 2024 operational revenue growth forecast to -3% to -1% and sees short-term weakness in the US pet business despite stable list prices. Management says the decline is cyclical and is defending market share through targeted promotions rather than broad price cuts. Growth is expected to be supported by a strong livestock business, international markets and an extensive pipeline in areas such as chronic kidney disease, oncology, long-acting parasiticides and dermatology. The company expects approvals for key products (including Cytopoint Plus) in 2024–2025 and will update investors again in November. » More on de.investing.com

Zoetis posted fiscal Q2 revenue of $2.5 billion, essentially flat year-over-year and down 1% on an organic basis, as weakness in the U.S. companion-animal market offset strength in livestock and international sales. Management cut 2026 revenue and adjusted EPS guidance substantially, now expecting revenue of $9.12–$9.32 billion and adjusted EPS of $6.15–$6.25, citing lower clinic visits, price-sensitive pet owners and competitive pressure. The company highlights a diversified business, 12+ potential blockbuster pipeline candidates and recent launches (Lenivia, Portela) plus the VitalRADS acquisition as possible drivers to restore growth, but investors will need evidence that new products can reverse the U.S. pet slowdown. » More on finance.yahoo.com

Polen Capital's Polen Focus Growth sold its holding in Zoetis, citing a slowdown partly driven by competitive entry in dermatology and a delayed revenue acceleration until late next year. The firm still views Zoetis as a market leader with strong brands and a robust pipeline but prefers to deploy capital into businesses with stronger near-term momentum such as ATI, GE Aerospace and GE Vernova. Polen Capital says it may reconsider reinvesting if Zoetis's growth acceleration becomes more visible as they shift the portfolio toward AI infrastructure, power and aerospace opportunities. » More on finance.yahoo.com

Brown Advisory sold its Zoetis stake in May, saying increased competition across key franchises, underperformance of new product Librela and generics in therapeutic categories broke its investment thesis. The firm also cited limited visibility on the pipeline and that Zoetis did not provide the defensive, deferrable-demand characteristics expected. Brown Advisory's broader Global Leaders Strategy underperformed the MSCI ACWI in Q2 2026 but flagged an attractive stock-picking opportunity ahead. » More on finance.yahoo.com

Zoetis reported Q2 revenue of $2.5 billion (flat reported, -1% organic) and adjusted EPS of $1.87, up 4% aided by share repurchases. Weak U.S. companion-animal demand, falling dermatology sales and increased promotional competition drove the downgrade; the company now expects 2026 organic operational revenue to decline 3% to 1% and adjusted net income to decline 9% to 5%. Diagnostics (up 12%) and livestock (up 11%) partially offset companion-animal weakness, but July trends showed no stabilization and an additional forex headwind of about $60–65 million to revenue. Zoetis repurchased over $550 million of shares, maintains R&D investment, and announced senior leadership changes including a new CFO/COO role. » More on finance.yahoo.com