--- title: "Zoetis | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 2.262 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/285536825.md" datetime: "2026-05-07T11:10:38.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285536825.md) - [en](https://longbridge.com/en/news/285536825.md) - [zh-HK](https://longbridge.com/zh-HK/news/285536825.md) --- # Zoetis | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 2.262 B Revenue: As of FY2026 Q1, the actual value is USD 2.262 B, missing the estimate of USD 2.301 B. EPS: As of FY2026 Q1, the actual value is USD 1.42, missing the estimate of USD 1.5367. EBIT: As of FY2026 Q1, the actual value is USD 820 M. #### Overall Performance (Q1 2026) - **Revenue**: 硕腾 (Zoetis Inc.) reported revenue of $2.3 billion for the first quarter of 2026, an increase of 3% compared to the first quarter of 2025, and flat on an organic operational basis. Total revenue was $2,262 million in Q1 2026, up from $2,198 million in Q1 2025, a 3% increase . - **Net Income**: Reported net income was $601 million, which was flat compared to the previous year . - **Adjusted Net Income**: Adjusted net income was $646 million, an increase of 2% on a reported basis and 1% on an organic operational basis . #### Costs and Expenses (Q1 2026) - **Cost of Sales**: Cost of sales increased by 4% to $641 million in Q1 2026 from $618 million in Q1 2025. Adjusted cost of sales was $638 million in Q1 2026, up 3% from $617 million in Q1 2025, with an operational increase of 8% and an organic operational decrease of -5%. As a percentage of revenue, adjusted cost of sales was 28.2% in Q1 2026, compared to 28.1% in Q1 2025 . - **Selling, General and Administrative Expenses (SG&A)**: SG&A expenses increased by 2% to $588 million in Q1 2026 from $574 million in Q1 2025. Adjusted SG&A expenses were $585 million in Q1 2026, up 4% from $565 million in Q1 2025, with an operational increase of 3% and an organic operational increase of 1% . - **Research and Development Expenses (R&D)**: R&D expenses increased by 11% to $180 million in Q1 2026 from $162 million in Q1 2025. Adjusted R&D expenses were $179 million in Q1 2026, up 10% from $162 million in Q1 2025, with an operational increase of 1% and an organic operational increase of 9% . - **Amortization of Intangible Assets**: Amortization of intangible assets was $31 million in Q1 2026, a decrease of -3% from $32 million in Q1 2025 . - **Restructuring Charges and Certain Acquisition and Divestiture-Related Costs**: These costs were $22 million in Q1 2026, compared to $0 million in Q1 2025. Acquisition-related costs were $2 million pre-tax in Q1 2026. Other restructuring charges and cost-reduction/productivity initiatives were $20 million pre-tax, and business process transformation program costs were $5 million pre-tax in Q1 2026 . - **Interest Expense, Net of Capitalized Interest**: Interest expense increased by 15% to $62 million in Q1 2026 from $54 million in Q1 2025 . - **Other (Income)/Deductions–Net**: Other (income)/deductions–net was -$20 million in Q1 2026, compared to -$15 million in Q1 2025 . - **Income before Provision for Taxes on Income**: This decreased by -2% to $758 million in Q1 2026 from $773 million in Q1 2025 . - **Provision for Taxes on Income**: Provision for taxes on income decreased by -8% to $157 million in Q1 2026 from $171 million in Q1 2025 . #### Segment Revenue (Q1 2026) - **U.S. Segment**: Total revenue in the U.S. segment was $1.1 billion, a decrease of -8% on both a reported and organic operational basis compared to Q1 2025. Companion animal product sales decreased -11%, while livestock product sales increased 7% on both reported and organic operational bases. U.S. revenue was $1,090 million in Q1 2026, down from $1,183 million in Q1 2025 . - **International Segment**: Total revenue in the International segment was $1.1 billion, a 17% increase on a reported basis and a 10% increase on an organic operational basis compared to Q1 2025. Companion animal product sales grew 15% reported and 7% organic operational, while livestock product sales grew 19% reported and 14% organic operational. International revenue was $1,149 million in Q1 2026, up from $985 million in Q1 2025 . #### Global Revenue by Species (Q1 2026) - **Companion Animal**: Revenue was $1,519 million, a -1% decrease, and -4% organic operational decrease. Dogs and Cats revenue was $1,443 million, a -2% decrease. Horses revenue was $76 million, a 19% increase . - **Livestock**: Revenue was $720 million, a 15% increase, and 12% organic operational increase. Cattle revenue was $392 million (15% increase), Swine revenue was $123 million (17% increase), Poultry revenue was $118 million (11% increase), and Fish revenue was $66 million (20% increase). Sheep and other revenue was $21 million (5% increase) . - **Contract Manufacturing & Human Health**: Revenue was $23 million, a -23% decrease . #### Segment Earnings (Q1 2026) - **U.S. Earnings**: U.S. earnings were $697 million in Q1 2026, a -11% decrease from $779 million in Q1 2025. U.S. Gross Profit was $896 million (down -9%) and Gross Margin was 82.2% . - **International Earnings**: International earnings were $639 million in Q1 2026, a 21% increase from $527 million in Q1 2025. International Gross Profit was $815 million (up 18%) and Gross Margin was 70.9% . - **Total Reportable Segments Earnings**: Total reportable segments earnings were $1,336 million, a 2% increase from $1,306 million in Q1 2025 . #### Unique Metrics - 硕腾 (Zoetis Inc.) has a pipeline of more than 12 potential blockbuster candidates across chronic kidney disease, oncology, cardiology, anxiety, and obesity. The company expects a significant approval in a major market every year for the next several years . - Recent product approvals include Convenia RTU in Canada, Apoquel Chewable in Thailand, ALPHA JECT micro 4 (fish vaccine) in Japan, and Ketofen for cattle pain management in Japan . - 硕腾 (Zoetis Inc.) plans to acquire Neogen’s animal genomics business, expected to close in the second half of 2026, to expand its livestock innovation capabilities . #### Outlook / Guidance (Full Year 2026) 硕腾 (Zoetis Inc.) revised its full year 2026 revenue guidance to $9.680 billion to $9.960 billion, expecting organic operational revenue growth of 2% to 5%. The company also revised its full year 2026 guidance for adjusted net income to $2.870 billion to $2.950 billion, representing organic operational growth of 2% to 6%. 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