Zoetis reports Q1 2026 revenue of $2.3 billion, missing expectations amid U.S. companion animal sales decline.
Citi lowered its price target for Zoetis (ZTS) to $112 from $145 while maintaining a Buy rating after the company’s Q1 2026 results disappointed. Revenue reached $2.3 billion, up 3% year-over-year but flat organically, with U.S. sales dropping 8% due to weaker companion animal demand and competition.
Zoetis had previously reported stronger growth, but Q1 2026 saw a notable slowdown, particularly in its U.S. segment, where companion animal product sales fell 11%. The company now forecasts full-year revenue of $9.680 billion to $9.960 billion, reflecting 2% to 5% organic growth, with adjusted net income between $2.870 billion and $2.950 billion.
Despite the downgrade, analysts highlight Zoetis’ premium portfolio as a long-term strength amid consumer trade-down pressures.