Zoetis (ZTS) Q1 FY2026 earnings: revenue $2.3 billion, up 2.9% on the year

Zoetis Inc. (ZTS) reported revenue of $2.3 billion for Q1 FY2026, the quarter ended 31 March 2026, up 2.9% on the same quarter a year earlier. Net income was $601 million, down 0.2% on the year, and diluted earnings per share $1.42. The figures are the company's own, from the 10-Q it filed with the SEC on 7 May 2026.

Revenue

$2.3 billion

+2.9% on the year · -5.2% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

n/a

Q2 FY2024Q1 FY2026

Net income

$601 million

-0.2% on the year · -0.3% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$1.42

+6.0% on the year · +3.6% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 4 raised, 8 lowered, 1 kept.

Revenue up 3%, flat organically: Revenue was $2.3 billion, up 3% reported and flat on an organic operational basis; foreign exchange added 4 points to the reported change.
Net income flat, diluted EPS up 6%: Net income was $601 million, flat on a reported basis, and diluted EPS was $1.42, up 6%. Adjusted diluted EPS was $1.53, up 9% reported and 7% organic operational.
U.S. revenue fell 8%: U.S. revenue was $1.1 billion, down 8% on both reported and organic operational bases. U.S. earnings fell 11% to $697 million.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	2,262	2,387	2,198	-5.2%	+2.9%
Cost of revenue	641	712	618	-10.0%	+3.7%
Gross profit	1,621	1,675	1,580	-3.2%	+2.6%
Gross margin	71.7%	70.2%	71.9%
Research and development	180	199	162	-9.5%	+11.1%
Selling, general and administrative	588	619	574	-5.0%	+2.4%
Interest expense	62.0	57.0	54.0	+8.8%	+14.8%
Pre-tax income	758	761	773	-0.4%	-1.9%
Income tax	157	158	171	-0.6%	-8.2%
Effective tax rate	20.7%	20.8%	22.1%
Net income	601	603	602	-0.3%	-0.2%
Net margin	26.6%	25.3%	27.4%
Diluted EPS	$1.42	$1.37	$1.34	+3.6%	+6.0%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	401	893	587	-55.1%	-31.7%
Capital expenditure	110	161	149	-31.7%	-26.2%
Free cash flow	291	732	438	-60.2%	-33.6%
Free cash flow margin	12.9%	30.7%	19.9%
Cash from investing	-87.0	-166	-175
Cash from financing	-840	-495	-677
Depreciation and amortisation	119	121	119	-1.7%	0.0%
Share-based compensation	25.0	22.0	17.0	+13.6%	+47.1%
Buybacks	1,535	2,060	443	-25.5%	+246.5%
Dividends paid	224	220	224	+1.8%	0.0%
Dividend per share	$0.53	n/a	$0.50		+6.0%
Diluted shares, weighted	422m	439m	448m	-3.7%	-5.7%
Shares outstanding at period end	420m	425m	446m	-1.1%	-5.8%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	3,233	3,331	4,655	-2.9%	-30.5%
Non-controlling interest	0.0	0.0	0.0
Debt	9,045	9,042	6,577	+0.0%	+37.5%
Operating lease liabilities	193	196	173	-1.5%	+11.6%
Finance lease liabilities	n/a	6.0	n/a
Other liabilities	2,683	2,892	2,693	-7.2%	-0.4%
Total liabilities and equity	15,154	15,467	14,098	-2.0%	+7.5%
Fixed assets	3,719	3,681	3,441	+1.0%	+8.1%
Goodwill	2,778	2,767	2,716	+0.4%	+2.3%
Intangible assets	959	998	1,082	-3.9%	-11.4%
Investments	n/a	0.0	n/a
Cash and equivalents	1,941	2,450	1,721	-20.8%	+12.8%
Receivables	1,506	1,590	1,361	-5.3%	+10.7%
Inventory	2,550	2,430	2,365	+4.9%	+7.8%
Other assets	1,701	1,551	1,412	+9.7%	+20.5%
Total assets	15,154	15,467	14,098	-2.0%	+7.5%

Questions

What was Zoetis' revenue in Q1 FY2026?

Zoetis (ZTS) reported revenue of $2.3 billion for Q1 FY2026, the quarter ended 31 March 2026, up 2.9% on the same quarter a year earlier.

How much did Zoetis earn in Q1 FY2026?

Net income for Q1 FY2026 was $601 million, down 0.2% on the year, and diluted earnings per share $1.42.

When did Zoetis report Q1 FY2026 results?

Zoetis filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 7 May 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025 †	Q2 FY2025 †	Q3 FY2025 †	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,967	1,986	2,052	2,002	2,040	2,000	2,180	2,151	2,213	2,190	2,361	2,388	2,317	2,198	2,474	2,422	2,387	2,262	2,468	2,391
Cost of revenue	600	569	625	607	653	588	607	638	728	643	668	701	707	618	664	697	712	641	673	698
Gross profit	1,367	1,417	1,427	1,395	1,387	1,412	1,573	1,513	1,485	1,547	1,693	1,687	1,610	1,580	1,810	1,725	1,675	1,621	1,795	1,693
Gross margin	69%	71%	70%	70%	68%	71%	72%	70%	67%	71%	72%	71%	69%	72%	73%	71%	70%	72%	73%	71%
R&D	138	122	135	134	148	142	146	152	174	162	171	167	186	162	166	175	199	180	173	174
SG&A	593	465	529	501	514	505	556	525	565	547	581	565	625	574	614	582	619	588	592	582
Interest expense	54.0	53.0	53.0	53.0	62.0	63.0	58.0	59.0	59.0	58.0	59.0	57.0	51.0	54.0	53.0	58.0	57.0	62.0	61.0	62.0
Pre-tax income	506	727	670	667	592	697	872	717	650	747	780	874	732	773	912	887	761	758	866	729
Tax rate	18%	18%	21%	21%	22%	21%	23%	17%	20%	20%	20%	21%	21%	22%	20%	19%	21%	21%	20%	19%
Net income	414	595	529	529	461	552	671	596	525	599	624	682	581	602	726	721	603	601	691	591
Net margin	21%	30%	26%	26%	23%	28%	31%	28%	24%	27%	26%	29%	25%	27%	29%	30%	25%	27%	28%	25%
Diluted EPS	$0.87	$1.26	$1.12	$1.13	$0.99	$1.19	$1.45	$1.29	$1.14	$1.31	$1.37	$1.50	$1.29	$1.34	$1.63	$1.63	$1.37	$1.42	$1.65	$1.44
Operating cash flow	679	309	336	526	741	549	183	724	897	595	502	951	905	587	486	938	893	401	655	824
Capital expenditure	168	115	146	154	171	223	166	145	198	140	132	167	216	149	178	133	161	110	117	107
Free cash flow	511	194	190	372	570	326	17.0	579	699	455	370	784	689	438	308	805	732	291	538	717
Buybacks	198	361	451	377	405	283	324	250	235	339	533	433	553	443	338	394	2,060	1,535	n/a	500
Dividends paid	117	154	153	153	151	174	173	173	172	198	197	197	194	224	223	222	220	224	223	219
Shares outstanding	473m	471m	469m	466m	464m	462m	461m	460m	458m	457m	454m	452m	448m	446m	444m	441m	425m	420m	414m	407m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2026, filed 7 May 2026: the filing.