Equity Profile

ZTS

Zoetis Inc.

Health CarePharmaceuticals$31.6B

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

Earnings Per Share (EPS)

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

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and is critical for assessing its operational performance.

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. (ZTS) is a leading global animal health company that develops and manufactures veterinary medicines and vaccines for livestock and pets. With a market cap of $32 billion, Zoetis plays a crucial role in the healthcare of animals, which is increasingly important as pet ownership and livestock farming continue to grow worldwide.

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, resulting in a significant stock drop of 21.50% the following day. This miss raised concerns about the company's growth trajectory and market conditions.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall expectations for Zoetis are mixed, especially following the recent earnings miss. Investors are keenly watching for signs of recovery in demand and profitability.

Bull Case

If Zoetis can demonstrate strong revenue growth and improved margins, it could restore investor confidence and lead to a positive stock reaction.

Bear Case

On the other hand, if the company continues to show weakness in its earnings and revenue, it may face further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

The EPS figure will be critical in assessing whether Zoetis can regain investor confidence after the recent miss.

How is the demand for animal health products trending in the current market?

Understanding market demand will help investors gauge the company's future growth potential and overall health.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a rebound in demand for animal health products, which could lead to stronger-than-expected revenue growth this quarter.

Supporting Evidence

Options are pricing a 3.68% move, while historical averages suggest a potential for greater volatility.

The recent earnings miss may have created overly cautious sentiment, which could lead to a sharp recovery if demand shows signs of improvement.

Key Risk

If demand for animal health products rebounds significantly, it could contradict the current bearish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it could either validate a turnaround or highlight persistent weaknesses in Zoetis's operations.

Bull Confirmed If

A significant EPS beat, ideally above $1.70, would confirm the bull case and suggest a recovery in profitability.

Bear Confirmed If

An EPS below $1.50 would reinforce the bear case and indicate ongoing challenges in the business.

Pre-Earnings Positioning

Options Market

Implied Move

±3.68%

Historical Avg

±7.68%

Pricing cheap

The options market is pricing in a modest move of about 3.68%, suggesting that traders expect some volatility around the earnings report.

Options are pricing a smaller move compared to the historical average, indicating a potentially undervalued setup.

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 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 move up around 3.1%, confirming a positive turnaround narrative.

In-Line / Cautious

If results are in line but cautious commentary is provided, the stock may see limited movement as investors digest the news.

Miss

A miss could lead to a significant drop, with historical patterns indicating an average decline of 21.50% following such outcomes.

Preparation

Congressional Activity

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

Trades

1 buy·1 sell

Members

House only

Est. Notional

$2,002.00–$30,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
2

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on revenue growth trends in the animal health market.
2Management's outlook on future EPS and profitability.
3Insights into new product launches or innovations.
4Comments on cost management strategies and their impact on margins.
5Any changes in guidance for the remainder of the fiscal year.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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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

Earnings Per Share (EPS)

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

N/A

Revenue Growth

Revenue growth reflects the company's ability to expand its market share and is critical for assessing its operational performance.

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 are mixed, especially following the recent earnings miss. Investors are keenly watching for signs of recovery in demand and profitability.

Bull Case

If Zoetis can demonstrate strong revenue growth and improved margins, it could restore investor confidence and lead to a positive stock reaction.

Bear Case

On the other hand, if the company continues to show weakness in its earnings and revenue, it may face further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

The EPS figure will be critical in assessing whether Zoetis can regain investor confidence after the recent miss.

How is the demand for animal health products trending in the current market?

Understanding market demand will help investors gauge the company's future growth potential and overall health.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a rebound in demand for animal health products, which could lead to stronger-than-expected revenue growth this quarter.

Supporting Evidence

Options are pricing a 3.68% move, while historical averages suggest a potential for greater volatility.

The recent earnings miss may have created overly cautious sentiment, which could lead to a sharp recovery if demand shows signs of improvement.

Key Risk

If demand for animal health products rebounds significantly, it could contradict the current bearish outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it could either validate a turnaround or highlight persistent weaknesses in Zoetis's operations.

Bull Confirmed If

A significant EPS beat, ideally above $1.70, would confirm the bull case and suggest a recovery in profitability.

Bear Confirmed If

An EPS below $1.50 would reinforce the bear case and indicate ongoing challenges in the business.

Pre-Earnings Positioning

Options Market

Implied Move

±3.68%

Historical Avg

±7.68%

Pricing cheap

The options market is pricing in a modest move of about 3.68%, suggesting that traders expect some volatility around the earnings report.

Options are pricing a smaller move compared to the historical average, indicating a potentially undervalued setup.

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 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 move up around 3.1%, confirming a positive turnaround narrative.

In-Line / Cautious

If results are in line but cautious commentary is provided, the stock may see limited movement as investors digest the news.

Miss

A miss could lead to a significant drop, with historical patterns indicating an average decline of 21.50% following such outcomes.

Preparation

Congressional Activity

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

Trades

1 buy·1 sell

Members

House only

Est. Notional

$2,002.00–$30,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
2

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on revenue growth trends in the animal health market.
2Management's outlook on future EPS and profitability.
3Insights into new product launches or innovations.
4Comments on cost management strategies and their impact on margins.
5Any changes in guidance for the remainder of the fiscal year.