ZTS · 10-Q · 2026Q3 · Full report

Research and Development Expense

Zoetis Inc. · 2026-11-05 · Importance 18 · Surprise 14

Nine-month R&D expense increased $24 million, or 5%, in 2026 compared with 2025, primarily because of increased project investment and compensation-related costs. Third-quarter R&D expense decreased $1 million, or 1%, as lower compensation costs more than offset higher project investment spending. R&D-related expenses in Other business activities increased over the nine months, contributing to a $5 million increase in that activity’s net loss.

Key facts

• Zoetis’ 2026 in-process R&D asset impairment charges related to assets acquired from PetMedix in 2023 and resulted from updated development and commercial assumptions; charges also related to exiting certain sites. source
• Zoetis’ R&D expenses decreased $1 million, or 1%, in the third quarter of 2026, primarily from lower compensation costs, partly offset by higher project investment spending. source
• Zoetis’ R&D expenses increased $24 million, or 5%, in the first nine months of 2026, primarily due to higher project investment spending and compensation-related costs. source