Does Zoetis’ Upbeat 2025 Outlook Mark a Turning Point for ZTS’s Long-Term Growth Story?

• Earlier this week, Zoetis Inc. reported second-quarter 2025 results, showing higher sales and net income year-over-year, and subsequently raised its full-year revenue and earnings guidance, with updated expectations of US$9.45 billion to US$9.60 billion in revenue and reported diluted EPS of US$5.90 to US$6.00.
• This updated guidance reflects management's increased confidence in business momentum, bolstered by continued strength across both companion animal and livestock segments and supported by positive commentary from industry analysts.
• We'll explore how the upward revision in Zoetis' earnings outlook enhances the company's long-term growth narrative and analyst expectations.

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Zoetis Investment Narrative Recap

To be a Zoetis shareholder is to believe in the long-term growth potential of animal health, driven by steady innovation and robust demand from both companion animal and livestock markets. The recent Q2 report and upward revision in 2025 guidance reinforce business momentum, but do not materially shift the short-term catalyst: accelerating adoption of new therapies in core franchises, while growing competition, especially in parasiticides and dermatology, remains the principal risk to watch.

The most relevant recent announcement is Zoetis’ raised 2025 guidance, which follows stronger-than-expected quarterly results, supporting near-term optimism for both revenue and earnings growth. This directly ties into the catalyst of ongoing product innovation and market expansion, but ongoing vigilance around pricing pressure from new entrants remains warranted for those monitoring the company's market share outlook.

By contrast, one key issue that investors should be aware of is the risk that competitive pressures in Zoetis’ leading franchises could intensify over the next year, and…

Read the full narrative on Zoetis (it's free!)

Zoetis' narrative projects $10.9 billion revenue and $3.2 billion earnings by 2028. This requires 5.1% yearly revenue growth and a $0.6 billion earnings increase from $2.6 billion currently.

Uncover how Zoetis' forecasts yield a $190.62 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Eight individual fair value estimates from the Simply Wall St Community span US$134 to US$191.52 per share. While some see upside, ongoing competitive risks to Zoetis’ core products could influence future results, so comparing multiple views is essential.

Explore 8 other fair value estimates on Zoetis - why the stock might be worth as much as 29% more than the current price!

Build Your Own Zoetis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zoetis research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Zoetis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zoetis' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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