Mar 31

Zoetis Q1 2025 Earnings Report

Zoetis reported modest revenue growth and solid earnings performance in Q1 2025.

Key Takeaways

Zoetis delivered $2.2 billion in revenue and $631 million in net income, with strong performance in companion animal products driving 9% organic growth.

Revenue reached $2.2 billion, with 9% organic growth driven by companion animal products.

Net income was $631 million, up 5% from the previous year.

Adjusted EPS came in at $1.48, compared to $1.38 in Q1 2024.

Livestock segment declined due to divestitures, partially offset by strength in emerging markets.

Total Revenue
$2.22B
Previous year: $2.19B
+1.4%
EPS
$1.48
Previous year: $1.38
+7.2%
Companion Animal Growth
9%
Livestock Growth
7%
U.S. Revenue Growth
6%
Gross Profit
$1.6B
Previous year: $1.55B
+3.3%

Zoetis

Zoetis

Zoetis Revenue by Segment

Zoetis Revenue by Geographic Location

Forward Guidance

Zoetis updated its full-year 2025 guidance reflecting foreign exchange and tariff impacts while maintaining strong operational growth expectations.

Positive Outlook

  • Revenue guidance raised to $9.425B–$9.575B
  • Maintained 6%–8% organic revenue growth guidance
  • Adjusted EPS raised to $6.20–$6.30
  • Adjusted net income expected between $2.775B–$2.825B
  • Strong product approvals across companion and livestock portfolios

Challenges Ahead

  • Foreign exchange headwinds impacted reported growth
  • Livestock segment affected by divestiture of MFA portfolio
  • Tariffs pressured profit margins
  • Softness in poultry and swine segments
  • Decreased R&D investment margin due to increased SG&A spending

Revenue & Expenses

Visualization of income flow from segment revenue to net income