ZTS · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

Zoetis Inc. · 2026-08-06 · Importance 18 · Surprise 14

The six-month effective tax rate declined to 20.4% in 2026 from 21.2% in 2025, reducing the tax burden on six-month pretax income. The decline was primarily due to a more favorable jurisdictional mix of earnings and lower net discrete tax expenses. The second-quarter effective tax rate decreased to 20.2% from 20.4%, mainly because of lower discrete tax expenses partly offset by a less favorable earnings jurisdiction mix.

Key facts

• Our effective tax rate was 20.2% for the three months ended June 30, 2026 and 20.4% for the three months ended June 30, 2025. source
• Our effective tax rate was 20.4% for the six months ended June 30, 2026 and 21.2% for the six months ended June 30, 2025. source
• The lower effective tax rate for the three months ended June 30, 2026 was primarily attributable to lower discrete tax expenses, partially offset by a less favorable jurisdictional mix of earnings. source
• The lower effective tax rate for the six months ended June 30, 2026 was primarily attributable to a more favorable jurisdictional mix of earnings and lower net discrete tax expenses. source