We expect Zoetis Inc. ZTS to surpass expectations when it reports its first-quarter 2026 results on May 7, before the opening bell.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.30 billion. The consensus mark for earnings is pinned at $1.61 per share.
Let's see how things might have shaped up for Zoetis in the soon-to-be-reported quarter.
Factors to Consider Regarding ZTS’ Q1 Earnings
Zoetis derives the majority of its revenues from a diversified product portfolio of medicines and vaccines used to treat and protect livestock and companion animals. The company reports business results under two geographical operating segments — the United States and International.
First-quarter revenues in the U.S. segment are likely to have decreased from the year-ago quarter, primarily due to lower sales of Zoetis’ companion animal products. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $1.20 billion.
Revenues from the International segment are expected to have increased in the to-be-reported quarter due to higher sales of companion animal and livestock products. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $1.08 billion.
Year to date, shares of Zoetis have declined 8.6% compared with the industry’s decrease of 2.5%.
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Companion animal products sales, particularly ZTS’ parasiticides portfolio, including Simparica and ProHeart franchises, and its key dermatology products, including Apoquel and Cytopoint, are expected to have driven revenues in both the U.S. and International segments in the to-be-reported quarter.
However, Zoetis’ monoclonal antibody products for osteoarthritis pain, Librela for dogs and Solensia for cats, are expected to have posted a decline in sales in the U.S. segment due to fears of side effects in some dogs.
Apoquel is also approved as the first and only chewable treatment in the United States for controlling pruritus related to allergic dermatitis and control of atopic dermatitis in dogs at least 12 months of age. The drug’s expanded label is likely to have boosted sales in the first quarter.
In 2025, the FDA approved a new indication for Zoetis’ Simparica Trio to prevent flea tapeworm infections by targeting and killing vector fleas in treated dogs. With this approval, the triple combo drug is now the only canine combination parasiticide indicated to prevent flea tapeworm infections at the source by eliminating carrier fleas before they can transmit the parasite. The label expansion is expected to have driven sales in the to-be-reported quarter.
As has been the case in some previous quarters, Zoetis’ livestock product sales in the United States are expected to have declined in the first quarter, mainly due to the divestiture of the medicated feed additive product portfolio and related assets. However, livestock product sales in the International segment are likely to have increased, driven by broad-based growth across all core species.
ZTS Earnings Surprise History
Zoetis has an impressive earnings surprise history so far. The bottom-line surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.25%. In the last reported quarter, the company delivered an earnings surprise of 5.71%.
Zoetis Inc. Price and EPS Surprise
Zoetis Inc. price-eps-surprise | Zoetis Inc. Quote
What Our Model Predicts for ZTS
Our proven model predicts an earnings beat for Zoetis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
ZTS’ Earnings ESP: Zoetis’ Earnings ESP is +1.24% as the Most Accurate Estimate currently stands at $1.63, higher than the Zacks Consensus Estimate, which is pegged at $1.61.
ZTS’ Zacks Rank: Zoetis currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some stocks worth considering from the healthcare space, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Agenus AGEN has an Earnings ESP of +7.69% and a Zacks Rank #1 at present.
Shares of AGEN have risen 24.2% year to date. The company’s earnings beat estimates in two of the trailing four quarters, while missing the mark on the other two occasions. Agenus delivered an average earnings surprise of 31.42%.
Inovio Pharmaceuticals INO has an Earnings ESP of +3.33% and a Zacks Rank #2 at present.
Shares of INO have plunged 35.7% year to date. The company’s earnings beat estimates in each of the trailing four quarters. INO delivered an average earnings surprise of 57.94%.
Novo Nordisk NVO has an Earnings ESP of +1.83% and a Zacks Rank #3 at present.
Shares of NVO have lost 17% year to date. The company’s earnings beat estimates in three of the trailing four quarters, while meeting the mark on the remaining occasion. Novo Nordisk delivered an average earnings surprise of 11.97%. NVO is scheduled to report its first-quarter results on May 6.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
