Zoetis Inc. (NYSE: ZTS): Corporate Profile & Financials
Source: 2025 Annual Report Form 10-K For the fiscal year ended December 31, 2025
Quick Facts / Company Snapshot
| Company Name | Zoetis Inc. |
| Headquarters | Parsippany, New Jersey |
| Country of Incorporation | Delaware |
| Founded | July 2012 (as an independent company; legacy of nearly 75 years as a Pfizer business unit) |
| What the Company Does | Discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health. |
| Exchange and Ticker | New York Stock Exchange: ZTS |
| Business Segments | United States (U.S.) and International |
| Products & Services | Parasiticides, vaccines, dermatology, anti-infectives, pain and sedation, other pharmaceuticals, animal health diagnostics, biodevices, genetic tests, precision animal health, and client supply services |
| Employees | Approximately 14,500 worldwide |
| Countries & Regions Served | Directly in approximately 45 countries; products sold in more than 100 countries |
| CEO & Board Chairperson | Kristin C. Peck (Chief Executive Officer and Director); Michael B. McCallister (Chairman and Director) |
| Annual Revenue | $9,467 million +2.3% |
| Operating Income | $3,582 million +6.4% |
| Net Income | $2,673 million +7.5% |
| Total Assets | $15,467 million |
| Total Liabilities | $12,136 million |
Company Overview
Zoetis Inc. is a global leader in the animal health industry, focused on discovering, developing, manufacturing, and commercializing medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health. The company serves veterinarians, pet owners, and livestock producers worldwide across eight core species: dogs, cats, and horses (companion animals) and cattle, swine, poultry, fish, and sheep (livestock). Operating across seven major product categories, Zoetis maintains a diversified portfolio supported by a global manufacturing network of 21 sites operated by the company and a network of over 90 third-party contract manufacturing organizations (CMOs).
The company was incorporated in Delaware in July 2012 and previously operated as a business unit of Pfizer Inc. Zoetis operates through two geographic segments, the United States and International, complemented by Client Supply Services (CSS) contract manufacturing and human health diagnostics activities. Its business model relies on direct customer engagement through an extensive sales and technical veterinary operations organization, third-party veterinary distributors, retail, and e-commerce channels.
Business Segments
Zoetis organizes and operates its business into two principal geographic segments:
- United States (U.S.): Generated revenue of $5,097 million, representing 54% of total revenue for the year ended December 31, 2025. The U.S. segment comprises companion animal revenue of $4,220 million and livestock revenue of $877 million.
- International: Generated revenue of $4,254 million, representing 45% of total revenue for the year ended December 31, 2025. The International segment comprises companion animal revenue of $2,367 million and livestock revenue of $1,887 million across approximately 45 countries with direct marketing operations.
In addition, Client Supply Services (CSS), which provides contract manufacturing services to third parties, and human health diagnostics products together represented approximately 1% of total revenue for the year ended December 31, 2025.
History and Evolution
Zoetis traces its legacy back nearly 75 years as a former business unit of Pfizer Inc. The company was incorporated in Delaware in July 2012 and subsequently completed its initial public offering on the New York Stock Exchange in February 2013. Over its history, Zoetis has expanded its capabilities through internal research and development as well as strategic acquisitions and divestitures:
- 2018: Acquired Abaxis, Inc., a provider of veterinary point-of-care diagnostic instruments including the Vetscan portfolio.
- 2022: Completed the acquisitions of Jurox, an animal health company based in Australia, and Basepaws, a petcare genetics company.
- 2023: Completed the acquisitions of PetMedix Ltd and adivo GmbH, research and development stage animal health biopharmaceutical companies based in the U.K. and Germany, respectively. Also divested a majority interest in its pet insurance business, Pumpkin Insurance Services, and Performance Livestock Analytics.
- 2024: Completed the divestiture of its medicated feed additive product portfolio, certain water soluble products, and related assets to Phibro Animal Health.
- 2025: Acquired Veterinary Pathology Group, a veterinary diagnostic laboratory group with multiple locations across the U.K. and Ireland.
Products and Services
Zoetis commercializes approximately 300 comprehensive product lines spanning seven major product categories and eight core species:
- Parasiticides: Products that prevent or eliminate external and internal parasites such as fleas, ticks, lice, and worms (e.g., Simparica/Simparica Trio, Revolution/Revolution Plus/Stronghold/Stronghold Plus, ProHeart, Dectomax).
- Vaccines: Biological preparations that help prevent diseases of the respiratory, gastrointestinal, and reproductive tracts or induce a specific immune response (e.g., Vanguard/Versican line, Fostera/Suvaxyn line, Poulvac line, Rispoval/Bovi-Shield line, Core EQ Innovator).
- Dermatology: Products that relieve itch associated with allergic conditions and atopic dermatitis (e.g., Apoquel/Apoquel Chewable, Cytopoint).
- Anti-infectives: Products that prevent, kill, or slow the growth of bacteria, fungi, or protozoa (e.g., Clavamox/Synulox, Convenia, ceftiofur line, Draxxin/Draxxin KP).
- Pain and Sedation: Products that alleviate pain, primarily associated with osteoarthritis and postoperative pain (e.g., Librela, Solensia, Rimadyl).
- Other Pharmaceutical: Hormones, cardiopulmonary, topical and oral hygiene therapeutics, central nervous system drugs, diuretics, antiemetics, euthanasia, hepato-digestive products, and other categories (e.g., Cerenia).
- Animal Health Diagnostics: Testing and analysis of blood, urine, and other animal samples, including Vetscan chemistry analyzers, Vetscan Imagyst, rapid immunoassay tests, and reference laboratory services.
The company’s remaining revenue is derived from other non-pharmaceutical product categories such as nutritionals, biodevices, genetic testing, and precision animal health.
Brand Portfolio
Zoetis maintains a portfolio of established brands and trademarks across its product lines, including Simparica, Simparica Trio, Apoquel, Apoquel Chewable, Cytopoint, Librela, Solensia, ProHeart, Revolution, Revolution Plus, Stronghold, Stronghold Plus, Vanguard, Versican, Clavamox, Synulox, Convenia, Cerenia, Rimadyl, Fostera, Suvaxyn, Improvac, Improvest, Vivax, Poulvac, Rispoval, Bovi-Shield, Excede, Excenel, Naxcel, Spectramast, Draxxin, Dectomax, and Vetscan. Trademarks are maintained globally across the company’s operating markets.
Geographical Presence
Zoetis directly markets its products in approximately 45 countries across North America, Europe, Africa, Asia, Australia, and South America, and its products are sold in more than 100 countries. In 2025, the U.S. accounted for 54% of total revenue, while international markets accounted for 45%. Key international markets with reported revenue exceeding $100 million include Australia, Brazil, Canada, Chile, China, France, Germany, Italy, Japan, Mexico, Spain, and the United Kingdom. The company maintains a global manufacturing network of 21 sites and an R&D network spanning multiple countries.
Competitor Analysis
Zoetis operates as the largest company by revenue in the animal health industry but faces competition across all regions, species, and product categories. Principal methods of competition include new product development, product quality, price, service, and promotion to veterinary professionals, pet owners, and livestock producers. Named primary competitors in the filing include Boehringer Ingelheim Animal Health Inc., Merck Animal Health, Elanco Animal Health, and IDEXX Laboratories, alongside mid-sized competitors, start-ups, and generic manufacturers.
Operating Performance and Business Drivers
Total revenue for 2025 reached $9,467 million, representing a 2% increase compared with 2024 ($9,256 million). Operational revenue growth was 3%, driven by approximately 4% price growth, 1% volume growth from other in-line products, and 1% volume growth from key franchises, partially offset by an approximate 3% volume decrease resulting from the divestiture of the medicated feed additive product portfolio. Cost of sales as a percentage of revenue improved to 28.2% in 2025 from 29.4% in 2024, benefiting from the MFA divestiture, price increases, and lower inventory charges. Net income attributable to Zoetis increased to $2,673 million in 2025 from $2,486 million in 2024.
Board of Directors and Leadership Team
Executive Officers:
- Kristin C. Peck: Chief Executive Officer and Director
- Wetteny Joseph: Executive Vice President and Chief Financial Officer
- Nick Ashton: Executive Vice President and President, Global Manufacturing and Supply
- Jamie Brannan: Executive Vice President and Chief Commercial Officer
- Rimma Driscoll: Executive Vice President and Head of Global Strategy, Commercial and Business Development, and Global BioDevices
- Kevin Esch: Executive Vice President and President, Research and Development
- Jeannette Ferran Astorga: Executive Vice President, Corporate Affairs and Chief Sustainability Officer
- Julie Fuller: Executive Vice President, Chief Human Resources Officer and Global Operations
- Roxanne Lagano: Executive Vice President, General Counsel and Corporate Secretary
- Keith Sarbaugh: Executive Vice President and Chief Digital & Technology Officer
Members of the Board of Directors include Michael B. McCallister (Chairman), Paul M. Bisaro, Vanessa Broadhurst, Frank A. D’Amelio, Gavin D.K. Hattersley, Sanjay Khosla, Antoinette R. Leatherberry, Gregory Norden, Louise M. Parent, Kristin C. Peck, Willie M. Reed, Mark Stetter, and Stephanie Tilenius.
Future Strategy and Business Priorities
Zoetis focuses on six core strategic pillars to drive growth and operational execution: leading through innovation across its diverse portfolio; delivering an exceptional customer experience; powering the business through digital solutions and data insights; supporting a thriving workplace culture; advancing sustainability in animal health; and performing with excellence and agility. In 2026, the company expects to eliminate the one-month reporting lag for its International subsidiaries and align their fiscal years with the U.S. segment.
Key Strengths
Key strengths disclosed in the filing include a diversified product portfolio spanning companion animals and livestock across eight core species; a leading revenue scale in the animal health industry; established brand loyalty; a global manufacturing and supply chain network consisting of 21 company-operated sites and over 90 contract manufacturing organizations; a dedicated global research and development organization with more than 300 programs; and an extensive direct sales and technical veterinary operations force.
Key Challenges and Risks
Material risks disclosed by the company include high competition and the threat of generic alternatives upon patent expiration; reliance on top-selling products and product lines; potential unanticipated safety, quality, or efficacy concerns; global economic and political conditions including inflation and trade tensions; consolidation of customers and distributors; changing distribution channels for companion animal products; animal disease outbreaks; supply chain disruptions and manufacturing constraints; regulatory compliance and approval delays; legal proceedings and intellectual property challenges; foreign exchange rate fluctuations; cybersecurity and data privacy requirements; and substantial indebtedness.
Conclusion and Strategic Outlook
Zoetis maintains its position as a global leader in animal health through a diversified portfolio of medicines, vaccines, and diagnostics. By combining continuous innovation across core product categories with disciplined operational execution and global commercial reach, the company remains focused on addressing unmet animal health needs while navigating industry competition, macroeconomic factors, and evolving regulatory frameworks.
Official Site
1. Financial Statements
Amounts in the following financial statements are expressed in millions of U.S. dollars, except per share data, and cover the years ended December 31, 2025 and 2024 (and 2023 for the income statement).
Summary Consolidated Statements of Operations
| Line item | 2025 | 2024 | YoY Growth (%) |
|---|---|---|---|
| Revenue | $9,467 | $9,256 | +2.28% |
| Costs and expenses: | – | ||
| Cost of sales | 2,666 | 2,719 | -1.95% |
| Selling, general and administrative expenses | 2,378 | 2,318 | +2.59% |
| Research and development expenses | 698 | 686 | +1.75% |
| Amortization of intangible assets | 128 | 141 | -9.22% |
| Restructuring charges and certain acquisition and divestiture-related costs | 51 | 53 | -3.77% |
| Interest expense, net of capitalized interest | 222 | 225 | -1.33% |
| Other (income)/deductions—net | (36) | (19) | +89.47% |
| Income before provision for taxes on income | 3,360 | 3,133 | +7.25% |
| Provision for taxes on income | 687 | 637 | +7.85% |
| Net income before allocation to noncontrolling interests | 2,673 | 2,496 | +7.09% |
| Less: Net income/(loss) attributable to noncontrolling interests | — | 10 | – |
| Net income attributable to Zoetis Inc. | $2,673 | $2,486 | +7.52% |
| Earnings per share attributable to Zoetis Inc. stockholders—basic | $6.03 | $5.47 | +10.24% |
| Earnings per share attributable to Zoetis Inc. stockholders—diluted | $6.02 | $5.47 | +10.05% |
Balance Sheet
| Line item | December 31, 2025 | December 31, 2024 | YoY Growth (%) |
|---|---|---|---|
| Cash and cash equivalents | $2,312 | $1,987 | +16.36% |
| Accounts receivable, less allowance for doubtful accounts of $16 in 2025 and $18 in 2024 | 1,590 | 1,316 | +20.82% |
| Inventories | 2,430 | 2,306 | +5.38% |
| Other current assets | 436 | 377 | +15.65% |
| Total current assets | 6,768 | 5,986 | +13.06% |
| Property, plant and equipment, less accumulated depreciation of $2,925 in 2025 and $2,635 in 2024 | 3,681 | 3,391 | +8.55% |
| Operating lease right-of-use assets | 288 | 219 | +31.51% |
| Goodwill | 2,767 | 2,724 | +1.58% |
| Identifiable intangible assets, less accumulated amortization | 998 | 1,127 | -11.45% |
| Noncurrent deferred tax assets | 637 | 540 | +17.96% |
| Other noncurrent assets | 328 | 250 | +31.20% |
| Total assets | $15,467 | $14,237 | +8.64% |
| Current portion of long-term debt | $— | $1,350 | – |
| Accounts payable | 487 | 433 | +12.47% |
| Dividends payable | 232 | 224 | +3.57% |
| Accrued expenses | 852 | 746 | +14.21% |
| Accrued compensation and related items | 410 | 441 | -7.03% |
| Income taxes payable | 147 | 93 | +58.06% |
| Other current liabilities | 107 | 125 | -14.40% |
| Total current liabilities | 2,235 | 3,412 | -34.50% |
| Long-term debt, net of discount and issuance costs | 9,042 | 5,220 | +73.22% |
| Noncurrent deferred tax liabilities | 139 | 167 | -16.77% |
| Operating lease liabilities | 196 | 174 | +12.64% |
| Other taxes payable | 276 | 272 | +1.47% |
| Other noncurrent liabilities | 248 | 222 | +11.71% |
| Total liabilities | 12,136 | 9,467 | +28.19% |
| Common stock, $0.01 par value | 5 | 5 | 0.00% |
| Treasury stock, at cost | (10,685) | (7,445) | +43.52% |
| Additional paid-in capital | 1,101 | 1,182 | -6.85% |
| Retained earnings | 13,744 | 11,968 | +14.84% |
| Accumulated other comprehensive loss | (834) | (940) | -11.28% |
| Total Zoetis Inc. equity | 3,331 | 4,770 | -30.17% |
| Equity attributable to noncontrolling interests | — | — | – |
| Total equity | 3,331 | 4,770 | -30.17% |
| Total liabilities and equity | $15,467 | $14,237 | +8.64% |
Cash Flow Statement
| Line item | 2025 | 2024 | YoY Growth (%) |
|---|---|---|---|
| Net income before allocation to noncontrolling interests | $2,673 | $2,496 | +7.09% |
| Depreciation and amortization expense | 487 | 497 | -2.01% |
| Share-based compensation expense | 83 | 74 | +12.16% |
| Asset write-offs and asset impairments | 47 | 31 | +51.61% |
| Net loss/(gain) on sale of businesses, excluding transaction costs | 3 | 23 | -86.96% |
| Provision for losses on inventory | 68 | 97 | -29.90% |
| Deferred taxes | (52) | (338) | -84.62% |
| Settlement of derivative contracts | 11 | — | – |
| Other non-cash adjustments | (8) | (6) | +33.33% |
| Accounts receivable | (236) | (61) | +286.89% |
| Inventories | (199) | (40) | +397.50% |
| Other assets | (165) | 52 | N/M |
| Accounts payable | 46 | 31 | +48.39% |
| Other liabilities | 85 | 114 | -25.44% |
| Other tax accounts, net | 61 | (17) | N/M |
| Net cash provided by operating activities | 2,904 | 2,953 | -1.66% |
| Capital expenditures | (621) | (655) | -5.19% |
| Acquisitions, net of cash acquired | (24) | (8) | +200.00% |
| Purchase of investments | (7) | (5) | +40.00% |
| (Payments of)/proceeds from derivative instrument activity, net | (93) | 62 | N/M |
| (Payment of)/proceeds from sale of businesses, net of cash sold and working capital adjustments | (4) | 293 | N/M |
| Other investing activities | 1 | (2) | N/M |
| Net cash used in investing activities | (748) | (315) | +137.46% |
| (Decrease)/increase in short-term borrowings, net | — | (3) | – |
| Principal payments on long-term debt | (1,350) | — | – |
| Proceeds from issuance of long-term debt—senior notes, net of discount | 1,848 | — | – |
| Proceeds from issuance of convertible debt | 2,000 | — | – |
| Payment of debt issuance costs | (43) | — | – |
| Payment of premium on capped calls related to convertible debt | (187) | — | – |
| Payment of consideration related to previous acquisitions | — | (5) | – |
| Share-based compensation-related proceeds, net of taxes paid on withholding shares | (11) | (8) | +37.50% |
| Purchases of treasury stock, including excise taxes paid | (3,235) | (1,858) | +74.11% |
| Cash dividends paid | (889) | (786) | +13.10% |
| Other financing activities | (3) | — | – |
| Net cash used in financing activities | (1,870) | (2,660) | -29.70% |
| Effect of exchange-rate changes on cash and cash equivalents | 39 | (32) | N/M |
| Net increase/(decrease) in cash and cash equivalents | 325 | (54) | N/M |
| Cash and cash equivalents at beginning of period | 1,987 | 2,041 | -2.65% |
| Cash and cash equivalents at end of period | $2,312 | $1,987 | +16.36% |
2. Subsidiaries & Joint Ventures
The filing discloses the following consolidated subsidiaries and related legal entities (among others) referenced in connection with operations, acquisitions, or specific proceedings:
| Entity name | Country or jurisdiction | Relationship |
|---|---|---|
| Fort Dodge Saúde Animal Ltda. (FDSAL) | Brazil | Subsidiary |
| Abaxis, Inc. | United States | Subsidiary |
| Jurox | Australia | Subsidiary |
| Basepaws | United States | Subsidiary |
| PetMedix Ltd | United Kingdom | Subsidiary |
| adivo GmbH | Germany | Subsidiary |
| Veterinary Pathology Group (VPG) | United Kingdom and Ireland | Subsidiary |
3. Other Investments & Holdings
The filing notes a retained noncontrolling investment resulting from the divestiture of a majority interest in its pet insurance business (Pumpkin Insurance Services), but does not detail separate standalone equity investments or minority holdings as material separate line items outside ordinary commercial relationships.
4. Physical Properties
The company maintains approximately 173 owned and leased properties (representing approximately 11.5 million square feet worldwide) for sales, marketing, customer service, regulatory compliance, R&D, manufacturing, distribution, and administrative support.
| Facility / Site | Location | Status / Details |
|---|---|---|
| Corporate Headquarters | Parsippany, New Jersey, U.S. | Leased / Operating |
| R&D and Manufacturing Facilities | Kalamazoo, Michigan area, U.S. | Owned (~1.6 million square feet total: ~0.9M sq. ft. R&D, ~0.7M sq. ft. manufacturing) |
| Global Manufacturing Network (21 Sites) | Buellton (California, U.S.), Campinas (Brazil), Catania (Italy), Charles City (Iowa, U.S.), Durham (North Carolina, U.S.), Kalamazoo (Michigan, U.S.), Klofta (Norway), Lincoln (Nebraska, U.S.), Louvain-la-Neuve (Belgium), Melbourne (Australia), Olot (Spain), Overhalla (Norway), Rathdrum (Ireland), Rutherford (Australia), San Diego (California, U.S.), Suzhou (China), Tallaght (Ireland), Tullamore (Ireland), Union City (California, U.S.), Wellington (New Zealand), White Hall (Illinois, U.S.) | Owned and leased sites (Buellton, Durham, Klofta, Melbourne, San Diego, Union City, and a portion of Tullamore are leased). |
| Additional Manufacturing Site | Atlanta, Georgia area, U.S. | Purchased in 2023; planned future commercial production. |
5. Investments and Capital Expenditure
| Expenditure Category | 2025 | 2024 | 2023 |
|---|---|---|---|
| Capital expenditures (Cash flow statement) | $621 million | $655 million | $732 million |
| Research and development (R&D) expenses | $698 million | $686 million | $614 million |
| Environmental-related capital expenditures | ~ $1 million | Not separately disclosed | Not separately disclosed |
| Other environmental-related expenditures | ~ $17 million | Not separately disclosed | Not separately disclosed |
6. Share Capital and Outstanding Shares
| Share class or item | Reported amount or number of shares | Reporting date or basis |
|---|---|---|
| Authorized Common Stock | 6,000,000,000 shares ($0.01 par value) | As of December 31, 2025 |
| Authorized Preferred Stock | 1,000,000,000 shares | As of December 31, 2025 |
| Common Stock Issued | 501,891,243 shares | As of December 31, 2025 and December 31, 2024 |
| Common Stock Outstanding | 424,927,535 shares | As of December 31, 2025 |
| Common Stock Outstanding | 448,473,073 shares | As of December 31, 2024 |
| Common Stock Outstanding | 422,127,709 shares | As of February 6, 2026 |
| Treasury Stock | 76,963,708 shares (at cost of $10,685 million) | As of December 31, 2025 |
| Treasury Stock | 53,418,170 shares (at cost of $7,445 million) | As of December 31, 2024 |
| Weighted-average common shares outstanding — Basic | 443.443 million shares | Year ended December 31, 2025 |
| Weighted-average common and potential dilutive shares — Diluted | 443.835 million shares | Year ended December 31, 2025 |
| Weighted-average common shares outstanding — Basic | 454.200 million shares | Year ended December 31, 2024 |
| Weighted-average common and potential dilutive shares — Diluted | 454.848 million shares | Year ended December 31, 2024 |
| Weighted-average common shares outstanding — Basic | 461.172 million shares | Year ended December 31, 2023 |
| Weighted-average common and potential dilutive shares — Diluted | 462.269 million shares | Year ended December 31, 2023 |
| Shareholders of record | 1,356 shareholders | As of February 6, 2026 |
Frequently Asked Questions
What is Zoetis Inc.’s primary line of business?
Zoetis is a global leader in the animal health industry, focused on the discovery, development, manufacture, and commercialization of medicines, vaccines, diagnostic products and services, biodevices, genetic tests, and precision animal health for companion animals and livestock.
How many operating segments does Zoetis report?
Zoetis reports two geographic operating segments: the United States (U.S.) and International.
What percentage of total revenue was contributed by companion animals versus livestock in 2025?
In 2025, companion animal products represented approximately 70% of revenue ($6,587 million), while livestock products represented approximately 29% of revenue ($2,764 million), with contract manufacturing and human health comprising the remaining 1% ($116 million).
Who serves as the Chief Executive Officer of Zoetis?
Kristin C. Peck has served as Chief Executive Officer and Director since January 2020.
What are the company’s top-selling product lines?
In 2025, the two top-selling product lines, Simparica/Simparica Trio and Apoquel/Apoquel Chewable, contributed approximately 16% and 12% of revenue, respectively. Combined with Cytopoint, Librela, and the ceftiofur line, these five product lines contributed approximately 42% of revenue.