ZTS · 8-K · 20260806PR000038

Segment Profitability

Zoetis Inc. · 2026-08-06 · Importance 48 · Surprise 40

Second-quarter U.S. earnings declined 10% to $837 million as U.S. revenue fell 7% and gross margin contracted to 83.1% from 84.7%. International earnings increased 12% to $661 million as revenue grew 8%, gross profit rose 9% to $833 million, and gross margin expanded to 71.0% from 70.4%. Total reportable-segment earnings declined 2% to $1.498 billion, while consolidated income before taxes declined 5% to $866 million. Adjusted cost of sales increased to 27.1% of revenue from 26.7%, contributing to lower adjusted net income of $781 million, down 2% on an organic operational basis.

Key facts

• Three months ended June 30, 2026 total earnings (income before provision for taxes): $866 million, a 5% decrease versus prior year. source
• Three months ended June 30, 2026 U.S. earnings: $837 million, down 10% versus prior year. source
• Three months ended June 30, 2026 International earnings: $661 million, up 12% versus prior year. source