Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Zoetis (ZTS) delivered solid FY2025 results with revenue growing 2.3% to $9.47B and net income rising 7.5% to $2.67B, though a major debt-financed share buyback program sharply increased long-term debt by 73.2% and reduced stockholders' equity by 30.2%.
Revenue
$9.47B
+2.28% YoY
EPS (Diluted)
$6.02
+10.05% YoY
Source: SEC XBRL
Zoetis (ZTS) reported FY2025 revenue of $9.47B, up 2.3% year over year. Operating cash flow was $2.9B, down 1.7% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.87 | 1.87 | Miss -0.2% |
| Mar 2026 | 1.53 | 1.63 | Miss -6.2% |
| Dec 2025This filing | 1.48 | 1.42 | Beat +4.5% |
| Sep 2025 | 1.70 | 1.64 | Beat +3.8% |
Reported EPS of $1.48 versus the $1.42 analyst consensus — a +4.5% beat for Dec 2025.
Compiled by AI from this SEC filing
ZTS grew total revenue 2.3% year-over-year to $9.47B in FY2025, up from $9.26B in the prior year, reflecting continued demand for its companion animal and livestock product lines despite a competitive market environment.
Source: 10-K Income Statement (XBRL Financial Data)
Cost of revenue declined 1.9% to $2.67B from $2.72B, meaning gross profit expanded even as revenue grew modestly — a sign of improving manufacturing efficiency or favorable product mix shift toward higher-margin products.
Source: 10-K Income Statement (XBRL Financial Data)
ZTS repurchased $3.24B in shares during FY2025, a 74.1% increase from $1.86B in the prior year, signaling strong management confidence in the business but also contributing to the sharp reduction in stockholders' equity from $4.77B to $3.33B.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Long-term debt jumped 73.2% to $9.04B from $5.22B, likely used to fund the aggressive share repurchase program, resulting in a debt-to-equity ratio of 3.64x — a meaningful increase in financial leverage that investors should monitor.
Source: 10-K Balance Sheet (XBRL Financial Data)
Current assets rose 13.1% to $6.77B while current liabilities fell 34.5% to $2.24B, producing a current ratio of 3.03x, indicating ZTS maintains ample short-term liquidity to meet near-term obligations even as total liabilities increased.
Source: 10-K Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Long-term debt surged 73.2% to $9.04B in FY2025, pushing the debt-to-equity ratio to 3.64x and total liabilities to $12.14B. This elevated leverage increases ZTS's sensitivity to interest rate changes and could constrain future financial flexibility if operating cash flows deteriorate.
Source: 10-K Balance Sheet (XBRL Financial Data)
Stockholders' equity fell 30.2% to $3.33B from $4.77B, driven primarily by the large share repurchase program of $3.24B. A continued decline in equity could affect credit ratings and borrowing costs over time.
Source: 10-K Balance Sheet & Cash Flow Statement (XBRL Financial Data)
Operating cash flow dipped 1.7% to $2.90B from $2.95B, a modest but notable decline that, if it continues, could limit ZTS's ability to sustain its aggressive capital return program without further debt issuance.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Investing cash outflows widened sharply by 137.5% to -$748M from -$315M, suggesting ZTS is ramping up capital expenditures or acquisitions. Sustained elevated investment spending could pressure free cash flow generation.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
SG&A expenses grew 2.6% to $2.38B, slightly outpacing the 2.3% revenue growth rate, which could compress operating margins if this trend continues without corresponding revenue acceleration or cost discipline measures.
Source: 10-K Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 9.47 $B | 9.26 $B | +2.28% |
Cost of Revenue $B | 2.67 $B | 2.72 $B | -1.95% |
Net Income $B | 2.67 $B | 2.49 $B | +7.52% |
EPS (Basic) $ | 6.03 $ | 5.47 $ | +10.24% |
EPS (Diluted) $ | 6.02 $ | 5.47 $ | +10.05% |
SG&A Expense $B | 2.38 $B | 2.32 $B | +2.59% |
Answers draw on this SEC filing and the data on this page
Zoetis Q2 2026 revenue was flat as U.S. companion animal declines offset international growth, while EPS rose slightly due to share repurchases.
Zoetis delivered modest Q1 FY2026 revenue growth of 2.9% to $2.26B, with net income essentially flat at $601M, while long-term debt surged 73% to $9.05B, significantly pressuring stockholders' equity and leverage ratios.
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