ZTS · 8-K · 20260806PR000038

Net Income and Profitability

Zoetis Inc. · 2026-08-06 · Importance 26 · Surprise 14 · In source text

Second-quarter reported net income declined 5% to $691 million from $726 million, while reported diluted EPS increased 1% to $1.65 because diluted weighted-average shares declined to 417.7 million from 445.5 million. Adjusted net income declined 1% on a reported basis and 2% on an organic operational basis to $781 million, while adjusted diluted EPS increased 5% on a reported basis to $1.87. The $90 million difference between reported and adjusted net income primarily reflected $75 million of restructuring and cost-reduction charges, $6 million of business-process-transformation costs, and $30 million of purchase-accounting adjustments before tax. Net interest expense increased 15% to $61 million, adding pressure to pretax earnings.

Key facts

• Second quarter 2026 adjusted net income excludes the net impact of $90 million for purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. source
• Net income for the second quarter of 2026: $691 million, or $1.65 per diluted share, decreasing 5% and growing 1%, respectively, on a reported basis. source
• Adjusted net income for the second quarter of 2026: $781 million, or $1.87 per diluted share. source
• Six months ended June 30, 2026 net income attributable to Zoetis (GAAP): $1,292 million (six months ended June 30, 2025: $1,328 million). source
• Three months ended June 30, 2026 adjusted diluted EPS: $1.87 (GAAP diluted EPS $1.65; adjustment components shown add $0.22). source
• Weighted-average diluted shares used for six months ended June 30, 2026: 420.1 million (six months ended June 30, 2025: 446.7 million). source

Impact estimates