At a glance
Zoetis Inc is worth $34.37B, about 14 times its fiscal 2025 earnings. Revenue grew 2.3% to $9.47B in fiscal 2025, with 28.2% kept as profit; over 5 years it has grown 7.2% a year. It pays a 2.55% dividend yield, raised every year for at least 9 years, and returned $11.97B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −41.0% over the past year with dividends reinvested and −16.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 35.7% in the 2020 crash (S&P 500: 33.7%) and 37.4% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Zoetis develops, makes and sells medicines, vaccines and diagnostic tests for animals. It was a business unit of Pfizer until it was incorporated as a separate company in July 2012. Its customers include veterinarians, pet owners and livestock producers. Its roughly 300 product lines cover dogs, cats and horses (which it calls companion animals) plus cattle, swine, poultry, fish and sheep. Its main categories include parasiticides (products that prevent or kill fleas, ticks and worms), vaccines, anti-itch dermatology drugs, anti-infectives, pain and sedation products, and diagnostics.
Pets drive the business. Companion animal products made up about 70% of fiscal 2025 revenue of $9.47 billion, and livestock products about 29%. Its pet brands include Simparica Trio, a chewable that protects dogs against fleas, ticks and heartworm; Apoquel and Cytopoint for itchy skin in dogs; and Librela, a monthly injection for osteoarthritis pain in dogs. Historically, much of its revenue has come from taking existing products into new uses, species, formulas and countries.
Zoetis reports two segments. In fiscal 2025 the U.S. brought in $5.10 billion, or 54% of revenue, with 83% of that from companion animals. International markets brought in $4.25 billion, or 45%, split 56% companion animal and 44% livestock. Of the countries Zoetis lists separately, Brazil, Australia and the U.K. were the largest. Contract manufacturing for other companies and human health products made up about 1%.
Price history
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ZTS -41.0% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Livestock | $2.76B | 29.2% |
| Vaccines | $1.96B | 20.7% |
| Anti-infectives | $1.04B | 10.9% |
| Pain & Sedation | $840.0M | 8.9% |
| Other pharmaceuticals | $697.0M | 7.4% |
| Swine | $466.0M | 4.9% |
| Animal health diagnostics | $434.0M | 4.6% |
| Poultry | $432.0M | 4.6% |
| Dogs and Cats | $304.0M | 3.2% |
| Fish | $286.0M | 3% |
| Other non-pharmaceuticals | $263.0M | 2.8% |
By business segment
| United States Segment | $5.10B | 53.8% |
| International Segment | $4.25B | 44.9% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $2.47B, down 0.2% from a year earlier, and net income was $691.0M (-4.8%).
- For fiscal 2025, revenue was $9.47B (+2.3% year over year; +7.2% a year from FY2020 to FY2025) with a 28.2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.2% good |
|---|---|
| Free cash flow margin | 24.1% good |
| Return on equity (FY2025) | 78.3% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2025) | 17.3% good |
| Net cash (cash minus debt) | $-7.37B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $6.67B | $1.64B | $1.67B |
| FY2021 | $7.78B | $2.04B | $1.74B |
| FY2022 | $8.08B | $2.11B | $1.33B |
| FY2023 | $8.54B | $2.34B | $1.62B |
| FY2024 | $9.26B | $2.49B | $2.30B |
| FY2025 | $9.47B | $2.67B | $2.28B |
Valuation snapshot
| Market value | $34.37B |
|---|---|
| P/E ratio | 13.8 |
| Dividend yield | 2.55% |
Rank among 1514 US companies
Market value at each year end
Zoetis’s market value went from $26.43B at the end of 2016 to $34.37B on Nov 2, 2026, up 30%; since the end of 2025 it is down 38%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $34.37B | -38.0% |
| 2025 | $55.45B | -24.6% |
| 2024 | $73.51B | -18.9% |
| 2023 | $90.62B | +32.7% |
| 2022 | $68.30B | -40.8% |
| 2021 | $115.46B | +46.8% |
| 2020 | $78.66B | +24.8% |
| 2019 | $63.04B | +53.4% |
| 2018 | $41.10B | +17.1% |
| 2017 | $35.10B | +32.8% |
| 2016 | $26.43B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ZTS price data to Nov 2, 2026 | -32.4% | -41.0% | -18.5% | -16.0% | +6.2% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -32.4% |
| 2025 | -21.8% |
| 2024 | -16.6% |
| 2023 | +35.9% |
| 2022 | -39.5% |
| 2021 | +48.3% |
| 2020 | +25.8% |
| 2019 | +55.7% |
| 2018 | +19.5% |
| 2017 | +35.6% |
| 2016 | +12.7% |
| 2015 | +12.1% |
| 2014 | +33.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 35.7% over that stretch · deepest drop along the way 35.7%, back to its old high 3.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 37.3% over that stretch · deepest drop along the way 37.4%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9% | Jun 30, 2026 |
| Vanguard Capital Management | 7.17% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.7% | Mar 31, 2026 |
ETFs with the most weight in ZTS
| PAWZ ProShares Pet Care ETF | 9.55% |
| MOO VanEck Agribusiness ETF | 7.98% |
| IHE iShares U.S. Pharmaceuticals ETF | 4.75% |
| PPH VanEck Pharmaceutical ETF | 4.54% |
| VNSE Natixis Vaughan Nelson Select ETF | 4.27% |
| XPH SPDR S&P Pharmaceuticals ETF | 4% |
| BEEZ Honeytree U.S. Equity ETF | 3.97% |
| FTXH First Trust Nasdaq Pharmaceuticals ETF | 3.72% |
What could go wrong
- Heavy reliance on top-selling products. Zoetis says its results depend on the success of its top-selling products. If a major product line loses patent protection, faces a safety problem or loses ground to a rival, sales and profits could fall.
- Safety or effectiveness concerns about its products. Unexpected side effects, quality problems or doubts about how well a product works could lead to recalls, lower use or lost trust among veterinarians and pet owners, hurting sales.
- Tough rivals and cheaper generic copies. Rivals include the animal health arms of large drug companies that may have more resources. Lower-priced generics can take sales once patents expire, and counterfeit or illegally compounded (pharmacy-made) copies add pressure.
- Shifts in how pet medicines are sold. Consolidation among customers and distributors could give buyers more power over prices. Changes in the channels that get pet medicines to owners could also shrink Zoetis's market share and margins.
- Animal disease outbreaks and livestock rules. Livestock products were about 29% of fiscal 2025 revenue. Animal disease outbreaks, limits on antibiotic use in food animals and concerns about eating animal products could reduce demand from farmers.
- Large debt load and convertible notes. Total debt was $9.05 billion against $1.68 billion of cash and investments as of June 30, 2026. Convertible notes, which are bonds that can turn into shares, could dilute existing shareholders if converted.
Recent events
- Executive or board change; Investor presentation or announcement
- Investor presentation or announcement
- Executive or board change
- Quarterly results released
- Executive or board change; Shareholder vote results
- Investor presentation or announcement
- Quarterly results released
- Quarterly results released
- Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Unregistered sale of shares; Investor presentation or announcement
For income and retirement investors
Zoetis raised its dividend every year in SEC filings through fiscal 2025, a streak of at least nine straight increases. Dividends per share rose from $0.85 in fiscal 2020 to $2.03 in fiscal 2025, about 19% a year. In fiscal 2025 they used 33% of earnings and 39% of free cash flow (cash left after running and investing in the business). The yield was 2.69% as of October 28, 2026. Buybacks have been bigger: $8.52 billion over fiscal 2021–2025, against $3.45 billion of dividends. The share count fell 12.7% from October 2021 to July 2026. In fiscal 2025, buybacks and dividends together exceeded free cash flow.
The shares fell 35.7% in the 2020 COVID crash and recovered in 3.8 months. They fell 37.4% in the 2022 bear market and had not regained that peak as of October 28, 2026, when they were down 45.5% over one year. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Zoetis make money?
Zoetis makes money selling medicines, vaccines and diagnostic tests for animals, used by veterinarians, pet owners and livestock producers. Products for dogs, cats and horses made up about 70% of its $9.47 billion of fiscal 2025 revenue, and livestock products about 29%. Its pet brands include Simparica Trio for fleas, ticks and heartworm, Apoquel and Cytopoint for itchy skin, and Librela for arthritis pain in dogs. The U.S. supplied 54% of revenue and international markets 45%.
Does Zoetis raise its dividend every year?
Yes, so far. Zoetis has raised its dividend every year in SEC filings through fiscal 2025, a streak of at least nine straight increases. Dividends per share rose from $0.85 in fiscal 2020 to $2.03 in fiscal 2025, about 19% a year. The fiscal 2025 dividend used about 33% of earnings and 39% of free cash flow, a moderate share. The yield was 2.69% as of October 28, 2026. Like any company, Zoetis can change its dividend at any time.
Was Zoetis part of Pfizer?
Yes. Zoetis was a business unit of Pfizer before it was incorporated as a separate company in July 2012. Some ties remain. Pfizer holds rights as licensor under a license covering patents and technical know-how, which Zoetis says could limit its ability to develop and sell certain products. Zoetis also depends on Pfizer to file, maintain and enforce certain intellectual property. Both appear among the risks in its annual report.
How much debt does Zoetis have?
Zoetis had $9.05 billion of total debt and $1.68 billion of cash and investments as of June 30, 2026. That works out to about $7.37 billion of net debt. Shareholders' equity was $3.15 billion. A small equity base makes return on equity look high, and it was 78.3% in fiscal 2025. The company lists its substantial debt among its risk factors. It also lists its convertible notes, which could turn into new shares and dilute existing owners.
How much has Zoetis stock fallen?
Sharply. As of October 28, 2026, the share price was down 45.5% over one year and 37.2% for the year to date. Its deepest peak-to-trough drop in 13.7 years of price history was 70.4%. Over 10 years the price still rose 75%, about 5.8% a year. On that date the stock traded at 12.9 times fiscal 2025 earnings. In the second quarter of fiscal 2026, revenue slipped 0.2% from a year earlier and net income fell 4.8%.