ZTS · 10-Q · 2026Q3 · Full report

Net Income and Profitability

Zoetis Inc. · 2026-11-05 · Importance 37 · Surprise 32

Nine-month net income attributable to Zoetis declined 8%, from $2.049 billion in 2025 to $1.883 billion in 2026, while adjusted net income decreased 1%, from $2.178 billion to $2.147 billion. Diluted GAAP EPS declined 2% to $4.51 from $4.60, while adjusted diluted EPS rose to $5.14 from $4.89. The decrease in reported income included a $179 million increase in certain significant items, from $62 million to $241 million, and lower total operating-segment earnings of $4.264 billion versus $4.290 billion.

Key facts

• Zoetis identified legal proceedings, including product liability claims, antitrust litigation, governmental investigations, tax disputes, environmental concerns, data-privacy laws and patent disputes, as potential risks to commercialization or existing-product profitability. source
• Zoetis’ effective tax rate was 18.9% in the third quarter of 2026 versus 18.6% in the third quarter of 2025, primarily due to lower net discrete tax benefits, partly offset by a more favorable jurisdictional earnings mix. source
• Zoetis’ effective tax rate was 20.0% in the first nine months of 2026 versus 20.3% in the comparable 2025 period, primarily due to a more favorable jurisdictional earnings mix, partly offset by lower net discrete tax benefits. source