Equity Profile

ZTS

Zoetis Inc.

Health CarePharmaceuticals$31.3B

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 vaccines and medicines....

Key Metrics to Watch

EPS

Earnings per share is a critical indicator of profitability and will show how well the company is managing its costs and driving revenue.

$1.85

Revenue

Total revenue reflects the company's overall sales performance and demand for its products in the animal health market.

$2.5B

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 vaccines and medicines. As a key player in the healthcare sector, Zoetis focuses on improving the health and productivity of livestock and pets, making it an important contributor to the agricultural and pet care industries.

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, missing expectations by 5.09%. Following this disappointing result, the stock dropped significantly, indicating investor concern.

Management Promises & Guidance

Focus on expanding product offerings in the livestock segment.
Commitment to enhancing operational efficiency.
Plans to invest in research and development for innovative animal health solutions.

Expectations

Wall Street Expectations

Analysts are cautiously optimistic about Zoetis's upcoming earnings, expecting a rebound in EPS and revenue after a disappointing last quarter.

Bull Case

If Zoetis can exceed the EPS estimate of $1.85, it may signal a recovery in demand and operational improvements, potentially boosting investor confidence.

Bear Case

Conversely, if the company fails to meet expectations again, it could lead to further declines in stock price and heightened concerns about its market position.

Key Metrics to Watch

EPS

$1.85

Earnings per share is a critical indicator of profitability and will show how well the company is managing its costs and driving revenue.

Revenue

$2.5B

Total revenue reflects the company's overall sales performance and demand for its products in the animal health market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoetis achieve an EPS of at least $1.85?

This figure is crucial for restoring investor confidence after the recent earnings miss.

What are the growth prospects in the livestock segment?

Given the company's focus on this area, insights into growth will be key for future revenue expectations.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street is underestimating the potential for a strong recovery in the livestock segment, which could drive better-than-expected results this quarter.

Supporting Evidence

The options market is pricing a smaller move than historical averages, suggesting a miscalculation of potential volatility.

Recent investments in R&D may yield new products that could positively impact revenue.

The company's commitment to operational efficiency could lead to improved margins, which is not fully reflected in current estimates.

Key Risk

If livestock segment growth exceeds expectations, it could significantly alter the current bearish sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Zoetis can rebound from its recent earnings miss and sustain growth in a competitive environment.

Bull Confirmed If

An EPS of $1.90 or higher would confirm strong operational recovery and demand.

Bear Confirmed If

An EPS below $1.77 would indicate ongoing challenges in meeting market expectations.

Pre-Earnings Positioning

Options Market

Implied Move

±3.68%

Historical Avg

±7.68%

Pricing cheap

The options market is pricing in a modest move around the earnings report, suggesting uncertainty about the results.

Options are pricing a smaller move than the historical average, indicating potential for a larger reaction.

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 setup 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 a potential stock increase of around 3.1%, confirming a recovery narrative.

In-Line / Cautious

If results are in line with expectations, the stock may react moderately, reflecting ongoing investor caution.

Miss

A miss could lead to a significant drop, with historical patterns indicating an average decline of 21.5% following such outcomes.

Preparation

Congressional Activity

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

Trades

0 buys·1 sell

Members

House only

Est. Notional

$1,001.00–$15,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
1

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on product launches in the livestock segment.
2Any commentary on cost management strategies.
3Insights into market demand trends for veterinary products.
4Details on R&D investments and their expected impact.
5Management's outlook on competitive pressures in the animal health market.

See the full picture

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Company Snapshot

Zoetis Inc. (ZTS) is a leading global animal health company that develops and manufactures veterinary vaccines and medicines....

Key Metrics to Watch

EPS

Earnings per share is a critical indicator of profitability and will show how well the company is managing its costs and driving revenue.

$1.85

Revenue

Total revenue reflects the company's overall sales performance and demand for its products in the animal health market.

$2.5B

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

In Q1 2026, Zoetis reported an EPS of $1.53, missing expectations by 5.09%. Following this disappointing result, the stock dropped significantly, indicating investor concern.

Management Promises & Guidance

Focus on expanding product offerings in the livestock segment.
Commitment to enhancing operational efficiency.
Plans to invest in research and development for innovative animal health solutions.

Expectations

Wall Street Expectations

Analysts are cautiously optimistic about Zoetis's upcoming earnings, expecting a rebound in EPS and revenue after a disappointing last quarter.

Bull Case

If Zoetis can exceed the EPS estimate of $1.85, it may signal a recovery in demand and operational improvements, potentially boosting investor confidence.

Bear Case

Conversely, if the company fails to meet expectations again, it could lead to further declines in stock price and heightened concerns about its market position.

Key Metrics to Watch

EPS

$1.85

Earnings per share is a critical indicator of profitability and will show how well the company is managing its costs and driving revenue.

Revenue

$2.5B

Total revenue reflects the company's overall sales performance and demand for its products in the animal health market.

Expectations

Two Questions That Matter

The print will turn on these two things.

Will Zoetis achieve an EPS of at least $1.85?

This figure is crucial for restoring investor confidence after the recent earnings miss.

What are the growth prospects in the livestock segment?

Given the company's focus on this area, insights into growth will be key for future revenue expectations.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street is underestimating the potential for a strong recovery in the livestock segment, which could drive better-than-expected results this quarter.

Supporting Evidence

The options market is pricing a smaller move than historical averages, suggesting a miscalculation of potential volatility.

Recent investments in R&D may yield new products that could positively impact revenue.

The company's commitment to operational efficiency could lead to improved margins, which is not fully reflected in current estimates.

Key Risk

If livestock segment growth exceeds expectations, it could significantly alter the current bearish sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The market is debating whether Zoetis can rebound from its recent earnings miss and sustain growth in a competitive environment.

Bull Confirmed If

An EPS of $1.90 or higher would confirm strong operational recovery and demand.

Bear Confirmed If

An EPS below $1.77 would indicate ongoing challenges in meeting market expectations.

Pre-Earnings Positioning

Options Market

Implied Move

±3.68%

Historical Avg

±7.68%

Pricing cheap

The options market is pricing in a modest move around the earnings report, suggesting uncertainty about the results.

Options are pricing a smaller move than the historical average, indicating potential for a larger reaction.

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 setup 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 a potential stock increase of around 3.1%, confirming a recovery narrative.

In-Line / Cautious

If results are in line with expectations, the stock may react moderately, reflecting ongoing investor caution.

Miss

A miss could lead to a significant drop, with historical patterns indicating an average decline of 21.5% following such outcomes.

Preparation

Congressional Activity

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

Trades

0 buys·1 sell

Members

House only

Est. Notional

$1,001.00–$15,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
1

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on product launches in the livestock segment.
2Any commentary on cost management strategies.
3Insights into market demand trends for veterinary products.
4Details on R&D investments and their expected impact.
5Management's outlook on competitive pressures in the animal health market.