Zoetis Reports Fourth Quarter and Full Year 2025 Results

PARSIPPANY, N.J.--( BUSINESS WIRE)-- Zoetis Inc. (NYSE: ZTS), the world's leading animal health company, today reported its financial results for the fourth quarter and full year 2025 and provided full year guidance for 2026.

The company reported revenue of $2.4 billion for the fourth quarter of 2025, an increase of 3% compared with the fourth quarter of 2024. On an organic operational 1 basis, revenue for the fourth quarter of 2025 increased 4% compared with the fourth quarter of 2024. Net income for the fourth quarter of 2025 was $603 million, or $1.37 per diluted share, an increase of 4% and 6%, respectively, on a reported basis.

Adjusted net income 2 for the fourth quarter of 2025 was $648 million, or $1.48 per diluted share, an increase of 3% and 6%, respectively, on a reported basis, and an increase of 4% and 7%, respectively, on an organic operational basis. Adjusted net income for the fourth quarter of 2025 excludes the net impact of $45 million for purchase accounting adjustments, acquisition and divestiture-related costs, and certain significant items.

For full year 2025, the company reported revenue of $9.5 billion, an increase of 2% compared with full year 2024. On an organic operational basis, revenue for full year 2025 increased 6%. Net income for full year 2025 was $2.7 billion, or $6.02 per diluted share, an increase of 8% and 10%, respectively, on a reported basis.

Adjusted net income for full year 2025 was $2.8 billion, or $6.41 per diluted share, an increase of 6% and 8%, respectively, on a reported basis, and 7% and 10%, respectively, on an organic operational basis. Adjusted net income for full year 2025 excludes the net impact of $174 million for purchase accounting adjustments, acquisition and divestiture-related costs, and certain significant items.

"Zoetis delivered solid results in 2025, demonstrating the strength and resilience of our portfolio across species, geographies, and channels. Leadership across key brands and categories drove continued growth, even as we navigated a dynamic operating environment,” said Kristin Peck, Chief Executive Officer of Zoetis. "Advancing our innovative pipeline is central to our strategy, and we achieved key milestones in 2025, including the first regulatory approvals for long-acting OA pain products Lenivia and Portela. We continue to compete from a position of strength, anchored in differentiated science, trusted brands, global reach, and enduring customer relationships. Our disciplined execution positions us well as we move into 2026 and lay the groundwork for the next phase of our innovation cycle, supporting sustainable growth and long-term value creation.”

QUARTERLY HIGHLIGHTS

Zoetis organizes and manages its commercial operations across two regional segments: United States (U.S.) and International. Within these segments, the company delivers a diverse portfolio of products for companion animals and livestock, tailored to local trends and customer needs. For the fourth quarter of 2025:

EXPECTED FISCAL YEAR ALIGNMENT

When Zoetis adopts the Expected Fiscal Year Alignment, the company will retroactively apply the new accounting principle to prior financial statement periods, which will allow for a comparison of the financial results to historical operations. The operational changes in connection with the Expected Fiscal Year Alignment to date also included a shift implemented in early 2026 to the timing of annual price increases in certain International Subsidiaries so that the price increase and anticipated customer buying preceding the price increase would occur in the same calendar year. In addition, processing of certain customer orders from December 2025 was delayed to calendar year 2026.

INVESTMENTS IN GROWTH

Zoetis continued to advance care for animals across the globe in 2025 with approximately 185 geographic expansion and lifecycle and new product innovations.

Continued Expansion of OA Pain Franchise

Among those, most notable were the company’s approvals for its long-acting monoclonal antibodies for osteoarthritis pain in dogs and cats, reflecting the continued expansion of Zoetis’ OA pain franchise.

In the fourth quarter, Zoetis received approval in Canada and the EU for Lenivia ®, the first long-acting monoclonal antibody to manage OA pain in dogs for up to three months with one injection, marking a significant scientific milestone. Lenivia addresses the significant unmet needs of this market as nearly 40% of dogs of any age or size may be affected by OA pain 4, 5 and chronic pain can negatively impact dogs’ movement, sleep, behavior and social relationships 6.

Portela ®, the first monoclonal antibody therapy with a three-month dosing interval approved for the alleviation of pain associated with OA in cats, was approved in Canada and the EU. This important milestone addresses unmet needs in the market, as up to 40% of all cats have clinical signs of OA 7, 8. Zoetis expects to launch Lenivia and Portela in Canada and the EU this year.

Additionally, the company received lifecycle innovation and geographic expansion approvals for key franchise products including Simparica Trio, Apoquel and Cytopoint. The company also received conditional licenses to combat emerging infectious diseases, including H5N2 avian influenza vaccines for use in chickens and lactating dairy cattle, and conditional approval for Dectomax-CA1 Injectable to prevent and treat New World screwworm.

Zoetis remains on track to receive a significant approval in a major market every year for the next several years, with 12 of its pipeline candidates having blockbuster 9 potential.

Continued Enhancement of Diagnostic Capabilities

In November, Zoetis acquired Veterinary Pathology Group (VPG), a leading veterinary diagnostic laboratory group with multiple locations across the UK and Ireland. The acquisition further expands the company's comprehensive diagnostics portfolio and reinforces its commitment to advancing animal health through innovative, high-quality diagnostic solutions. VPG’s extensive suite of multi-specialty diagnostic services and experienced team complement Zoetis’ existing capabilities, enabling enhanced support for veterinarians with faster, more accurate diagnostic insights that improve clinical outcomes for animals.

FINANCIAL GUIDANCE

Zoetis is providing full year 2026 guidance as follows:

This guidance reflects foreign exchange rates as of January 20, 2026. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call.

WEBCAST & CONFERENCE CALL DETAILS

Zoetis will host a webcast and conference call today at 8:30 a.m. ET to review fourth quarter and full year 2025 results, discuss financial guidance and respond to questions from financial analysts. The live webcast and corresponding slides can be accessed by visiting the Zoetis website at https://investor.zoetis.com/events-presentations. A replay of the webcast will be available following the event.

About Zoetis

Zoetis is the world’s leading animal health company, driven by a singular purpose: to nurture our world and humankind by advancing care for animals. With a legacy of nearly 75 years, Zoetis continues to pioneer ways to predict, prevent, detect, and treat animal illness, supporting veterinarians, livestock producers, and pet owners in over 100 countries. We integrate deep scientific expertise, data-driven R&D, advanced manufacturing, and commercial excellence to deliver meaningful innovation across medicines, vaccines, diagnostics, biopharmaceuticals, and digital solutions. Guided by our vision to be the most trusted and valued animal health company, Zoetis is committed to setting new standards for the future of animal care through innovation, customer obsession, and purpose-driven colleagues. To learn more, visit Zoetis.com.

1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures.

2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items.

3 Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange ..

4 Wright A, Amodie DM, Cernicchiaro N, et al. Identification of canine osteoarthritis using an owner-reported questionnaire and treatment monitoring using functional mobility tests. J Small Anim Pract. 2022;63(8):609-618.

5 Enomoto M, de Castro N, Hash J, et al. Prevalence of radiographic appendicular osteoarthritis and associated clinical signs in young dogs. Sci Rep. 2024;14(1):2827.

6 Lascelles BDX, Brown DC, Conzemius MG, Gill M, Oshinsky ML, Sharkey ML. Measurement of chronic pain in companion animals: discussions from the Pain in Animals Workshop (PAW) 2017. Vet J. 2019;250:71-78.

7 Enomoto M, Mantyh PW, Murrell J, Innes JF, Lascelles BDX. Anti-nerve growth factor monoclonal antibodies for the control of pain in dogs and cats. Vet Rec. 2019;184(1):23.

8 L.I. Slingerland, H.A.W. Hazewinkel, B.P. Meij, Ph. Picavet, G. Voorhout, Cross-sectional study of the prevalence and clinical features of osteoarthritis in 100 cats. The Veterinary Journal, Volume 187, Issue 3, 2011, Pages 304-309.

9 A blockbuster has sales of at least $100 million.

DISCLOSURE NOTICES

Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance, future guidance, future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; expectations regarding competing products; expectations regarding financial impact of divestitures; disruptions in our global supply chain; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; foreign exchange rates, tax rates, tariffs, changes in tax regimes and laws and any changes thereto; impacts of the timing and pricing of sales in the International segment; possible impacts of the Expected Fiscal Year Alignment; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.

Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share, operational results (which exclude the impact of foreign exchange) and organic operational results (which exclude the impact of foreign exchange and certain acquisitions and divestitures), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this press release should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release and are posted on our website at www.zoetis.com.

Internet Posting of Information: We routinely post information that may be important to investors on the 'Investor Relations' section of our website at www.zoetis.com, as well as on LinkedIn, Facebook, X (formerly Twitter) and YouTube. We encourage investors and potential investors to consult our website regularly and to follow us on social media for company news and information.

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ZOETIS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)

(UNAUDITED)

(millions of dollars, except per share data)

Three Months Ended

December 31,

% Change

Twelve Months Ended

December 31,

% Change

2025

2024

2025

2024

Revenue

2,387

2,317

9,467

9,256

Costs and expenses:

Cost of sales

712

707

2,666

2,719

)

Selling, general and administrative expenses

619

625

)

2,378

2,318

Research and development expenses

199

186

698

686

Amortization of intangible assets

)

128

141

)

Restructuring charges and certain acquisition and divestiture-related costs

)

Interest expense

222

225

)

Other (income)/deductions–net

)

(20

)

(55

)

(36

)

(19

)

Income before provision for taxes on income

761

732

3,360

3,133

Provision for taxes on income

158

151

687

637

Net income before allocation to noncontrolling interests

603

581

2,673

2,496

Less: Net income/(loss) attributable to noncontrolling interests

—

Net income attributable to Zoetis

603

581

2,673

2,486

Earnings per share—basic

1.38

1.29

6.03

5.47

Earnings per share—diluted

1.37

1.29

6.02

5.47

Weighted-average shares used to calculate earnings per share

Basic

438.2

450.5

443.4

454.2

Diluted

438.6

451.1

443.8

454.8

(a) The Condensed Consolidated Statements of Income present the three and twelve months ended December 31, 2025 and 2024. Subsidiaries operating outside the U.S. are included for the three and twelve months ended November 30, 2025 and 2024.

* Calculation not meaningful.

ZOETIS INC.

RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

CERTAIN LINE ITEMS

(UNAUDITED)

(millions of dollars, except per share data)

Three Months Ended December 31, 2025

GAAP

Reported (a)

Purchase

Accounting

Adjustments

Acquisition

and

Divestiture-

Costs (1)

Certain

Significant

Items (2)

Non-GAAP

Adjusted (b)

Cost of sales

712

)

—

)

708

Gross profit

1,675

—

1,679

Selling, general and administrative expenses

619

)

—

)

615

Amortization of intangible assets

(27

)

—

Restructuring charges and certain acquisition and divestiture-related costs

—

)

(16

)

—

Other (income)/deductions–net

)

—

)

(11

)

Income before provision for taxes on income

761

815

Provision for taxes on income

158

—

167

Net income attributable to Zoetis

603

648

Earnings per common share attributable to Zoetis–diluted

1.37

0.06

—

0.05

1.48

Three Months Ended December 31, 2024

GAAP

Reported (a)

Purchase

Accounting

Adjustments

Acquisition

and

Divestiture-

Costs (1)

Certain

Significant

Items (2)

Non-GAAP

Adjusted (b)

Cost of sales

707

)

—

706

Gross profit

1,610

—

1,611

Selling, general and administrative expenses

625

)

—

)

619

Amortization of intangible assets

(30

)

—

Restructuring charges and certain acquisition and divestiture-related costs

—

)

—

Other (income)/deductions–net

(20

)

—

)

(22

)

Income before provision for taxes on income

732

773

Provision for taxes on income

151

(18

)

141

Net income attributable to Zoetis

581

632

Earnings per common share attributable to Zoetis–diluted

1.29

0.06

0.01

0.04

1.40

(a) The Condensed Consolidated Statements of Income present the three months ended December 31, 2025 and 2024. Subsidiaries operating outside the U.S. are included for the three months ended November 30, 2025 and 2024.

(b) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.

See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2).

ZOETIS INC.

RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

CERTAIN LINE ITEMS

(UNAUDITED)

(millions of dollars, except per share data)

Twelve Months Ended December 31, 2025

GAAP

Reported (a)

Purchase

Accounting

Adjustments

Acquisition

and

Divestiture-

Costs (1)

Certain

Significant

Items (2)

Non-GAAP

Adjusted (b)

Cost of sales

2,666

)

—

)

2,657

Gross profit

6,801

—

6,810

Selling, general and administrative expenses

2,378

(11

)

—

(23

)

2,344

Research and development expenses

698

)

—

696

Amortization of intangible assets

128

(111

)

—

Restructuring charges and certain acquisition and divestiture-related costs

—

)

(49

)

—

Other (income)/deductions–net

(36

)

—

)

(41

)

Income before provision for taxes on income

3,360

128

3,572

Provision for taxes on income

687

—

725

Net income attributable to Zoetis

2,673

2,847

Earnings per common share attributable to Zoetis–diluted

6.02

0.22

—

0.17

6.41

Twelve Months Ended December 31, 2024

GAAP

Reported (a)

Purchase

Accounting

Adjustments

Acquisition

and

Divestiture-

Costs (1)

Certain

Significant

Items (2)

Non-GAAP

Adjusted (b)

Cost of sales

2,719

)

—

)

2,714

Gross profit

6,537

—

6,542

Selling, general and administrative expenses

2,318

(11

)

—

)

2,301

Research and development expenses

686

)

—

684

Amortization of intangible assets

141

(123

)

—

Restructuring charges and certain acquisition and divestiture-related costs

—

(18

)

(35

)

—

Other (income)/deductions–net

(19

)

—

(37

)

(56

)

Income before provision for taxes on income

3,133

140

3,370

Provision for taxes on income

637

)

667

Net income attributable to Zoetis

2,486

109

2,693

Earnings per common share attributable to Zoetis–diluted

5.47

0.24

0.03

0.18

5.92

(a) The Condensed Consolidated Statements of Income present the twelve months ended December 31, 2025 and 2024. Subsidiaries operating outside the U.S. are included for the twelve months ended November 30, 2025 and 2024.

See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2).

ZOETIS INC.

NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

CERTAIN LINE ITEMS

(UNAUDITED)

(millions of dollars)

(1) Acquisition and divestiture-related costs include the following:

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Acquisition-related costs

—

Divestiture-related costs (a)

—

Restructuring charges (b)

—

Total acquisition and divestiture-related costs—pre-tax

Income taxes (c)

—

Total acquisition and divestiture-related costs—net of tax

(a) Divestiture-related costs related to the sale of our medicated feed additive product portfolio, certain water soluble products and related assets, included in Restructuring charges and certain acquisition and divestiture-related costs.

(b) Restructuring charges represent employee termination costs directly related to acquisitions and divestitures, included in Restructuring charges and certain acquisition and divestiture-related costs.

(c) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate.

(2) Certain significant items include the following:

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Other restructuring charges and cost-reduction/productivity initiatives (a)

)

Business process transformation costs (b)

—

Certain asset impairment charges (c)

—

Net loss on sale of business (d)

—

Other

)

Total certain significant items—pre-tax

Income taxes (e)

(18

)

Total certain significant items—net of tax

(a) For the three and twelve months ended December 31, 2025, primarily consisted of employee termination costs related to organizational structure refinements, included in Restructuring charges and certain acquisition and divestiture-related costs. For the twelve months ended December 31, 2025, charges also include costs related to a transition from internal to external innovation and manufacturing of certain products and the closure of a related site.

For the twelve months ended December 31, 2024, primarily consisted of employee termination costs related to organizational structure refinements, partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative, included in Restructuring charges and certain acquisition and divestiture-related costs.

(b) Represents costs related to our multi-year business process transformation program, which includes the implementation of a new enterprise resource planning (ERP) system, related digital technology solutions and other related costs, included in Selling, general and administrative expenses and Cost of sales. This comprehensive program is a major global and cross-functional company-wide effort, of which the Expected Fiscal Year Alignment is a part, that we believe will transform how we work across our business and contribute to all of our strategic priorities. Due to the nature, scope and magnitude of this investment, these costs are incremental transformational costs that are far in excess of the historical normal level of spending to support operations and are not expected to recur in the foreseeable future.

(c) For the twelve months ended December 31, 2025, represents charges related to a transition from internal to external innovation and manufacturing of certain products and the closure of a related site, included in Restructuring charges and certain acquisition and divestiture-related costs, as well as charges related to our aquaculture product portfolio included in Other (income)/deductions–net.

For the twelve months ended December 31, 2024, represents charges related to our aquaculture product portfolio, included in Other (income)/deductions–net.

(d) Represents a net loss related to the sale of our medicated feed additive product portfolio, certain water soluble products and related assets in 2024, included in Other (income)/deductions–net.

(e) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. Income taxes in Certain significant items also includes:

ADJUSTED SELECTED COSTS AND EXPENSES (a)

(UNAUDITED)

(millions of dollars)

Three Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (b)

Divestitures

Organic

Operational (c)

Adjusted cost of sales

708

706

—%

(1)%

As a percent of revenue

29.7

30.5

Adjusted SG&A expenses

615

619

(1)%

(2)%

Adjusted R&D expenses

199

186

Adjusted net income

648

632

Twelve Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (b)

Divestitures

Organic

Operational (c)

Adjusted cost of sales

2,657

2,714

(2)%

(3)%

As a percent of revenue

28.1

29.3

Adjusted SG&A expenses

2,344

2,301

—%

Adjusted R&D expenses

696

684

Adjusted net income

2,847

2,693

(a) Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported U.S. GAAP income statement line items excluding purchase accounting adjustments, acquisition and divestiture-related costs, and certain significant items. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items. The corresponding GAAP line items and reconciliations of reported to adjusted information are provided in Condensed Consolidated Statements of Income and Reconciliation of GAAP Reported to Non-GAAP Adjusted Information.

(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.

(c) Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures.

2026 GUIDANCE

Selected Line Items

(millions of dollars, except per share amounts)

Full Year 2026

Revenue

$9,825 to $10,025

Organic operational growth (a)

3% to 5%

Adjusted cost of sales as a percentage of revenue (b)

Approximately 28.0%

Adjusted SG&A expenses (b)

$2,430 to $2,490

Adjusted R&D expenses (b)

$715 to $725

Adjusted interest expense and other (income)/deductions-net (b)

Approximately $200

Effective tax rate on adjusted income (b)

Approximately 20.5%

Adjusted diluted EPS (b)

$7.00 to $7.10

Adjusted net income (b)

$2,975 to $3,025

Organic operational growth (a)(c)

3% to 6%

Certain significant items and acquisition and divestiture-related costs (d)

Approximately $65

Reported diluted EPS

$6.65 to $6.75

The guidance reflects foreign exchange rates as of January 20, 2026.

Reported

Certain significant items and acquisition and divestiture-related costs (d)

Purchase accounting

Adjusted (b)

Cost of sales as a percentage of revenue

~ 28.2%

~ (0.2%)

~ 28.0%

SG&A expenses

$2,453 to $2,513

~ $(12)

~ $(11)

$2,430 to $2,490

R&D expenses

$717 to $727

~ $(2)

$715 to $725

Interest expense and other (income) / deductions

~ $200

Effective tax rate

~ 20.7%

~ (0.2%)

~ 20.5%

Diluted EPS

$6.65 to $6.75

~ $0.14

~ $0.21

$7.00 to $7.10

Net income attributable to Zoetis

$2,825 to $2,875

~ $60

~ $90

$2,975 to $3,025

(a) Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures.

(b) Adjusted net income and its components and adjusted diluted EPS are defined as reported U.S. GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. Adjusted cost of sales, adjusted SG&A expenses, adjusted R&D expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Despite the importance of these measures to management in goal setting and performance measurement, adjusted net income and its components and adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, adjusted net income and its components and adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Adjusted net income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.

(c) We do not provide a reconciliation of forward-looking non-GAAP adjusted net income organic operational results to the most directly comparable U.S. GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition and divestiture-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period.

(d) Primarily includes certain nonrecurring costs related to acquisitions, divestitures and other charges.

ZOETIS INC.

CONSOLIDATED REVENUE BY SEGMENT (a) AND SPECIES

(UNAUDITED)

(millions of dollars)

Three Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (b)

Divestitures

Organic

Operational (c)

Revenue:

Companion Animal

1,601

1,570

—

Livestock

756

726

Contract Manufacturing & Human Health

—

Total Revenue

2,387

2,317

U.S.

Companion Animal

1,002

1,008

—

Livestock

234

249

—

Total U.S. Revenue

1,236

1,257

—

International

Companion Animal

599

562

—

Livestock

522

477

Total International Revenue

1,121

1,039

Companion Animal:

Dogs and Cats

1,500

1,477

Horses

101

Total Companion Animal Revenue

1,601

1,570

Livestock:

Cattle

415

399

Swine

125

128

Poultry

117

—

Fish

Sheep and other

Total Livestock Revenue

756

726

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange.

ZOETIS INC.

CONSOLIDATED REVENUE BY SEGMENT (a) AND SPECIES

(UNAUDITED)

(millions of dollars)

Twelve Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (b)

Divestitures

Organic

Operational (c)

Revenue:

Companion Animal

6,587

6,278

—

Livestock

2,764

2,898

(11

Contract Manufacturing & Human Health

116

—

Total Revenue

9,467

9,256

U.S.

Companion Animal

4,220

4,054

—

Livestock

877

1,020

(14

—

(14

(18

Total U.S. Revenue

5,097

5,074

—

International

Companion Animal

2,367

2,224

—

Livestock

1,887

1,878

—

Total International Revenue

4,254

4,102

Companion Animal:

Dogs and Cats

6,283

5,993

—

Horses

304

285

Total Companion Animal Revenue

6,587

6,278

—

Livestock:

Cattle

1,492

1,531

Swine

466

516

(10

(19

Poultry

432

527

(18

(17

Fish

286

242

Sheep and other

Total Livestock Revenue

2,764

2,898

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange.

ZOETIS INC.

CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS

(UNAUDITED)

(millions of dollars)

Three Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (a)

Total International

1,121

1,039

Australia

Brazil

112

113

Canada

Chile

China

(23

—

(23

France

Germany

Italy

Japan

Mexico

Spain

United Kingdom

Other Developed

182

151

Other Emerging

212

195

—

Twelve Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (a)

Total International

4,254

4,102

Australia

329

319

Brazil

393

414

Canada

290

277

Chile

139

123

China

227

270

(16

(15

France

165

156

Germany

236

225

Italy

137

129

Japan

154

147

Mexico

160

169

Spain

145

130

United Kingdom

325

314

Other Developed

641

564

Other Emerging

913

865

(a) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange.

ZOETIS INC.

SEGMENT (a) EARNINGS

(UNAUDITED)

(millions of dollars)

Three Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (b)

U.S.:

Revenue

1,236

1,257

—

Cost of sales

213

229

—

Gross profit

1,023

1,028

—

Gross margin

82.8

81.8

Operating expenses

193

212

—

Other (income)/deductions-net

—

)

U.S. Earnings

830

819

—

International:

Revenue

1,121

1,039

Cost of sales

365

336

Gross profit

756

703

Gross margin

67.4

67.7

Operating expenses

183

180

Other (income)/deductions-net

)

—

International Earnings

574

523

Total Reportable Segments

1,404

1,342

Other business activities (c)

(159

)

(151

)

Reconciling Items:

Corporate (d)

(342

)

(320

)

Purchase accounting adjustments (e)

(31

)

(33

)

Acquisition and divestiture-related costs (f)

)

(83

Certain significant items (g)

(22

)

Other unallocated (h)

(88

)

(98

)

(10

Total Earnings (i)

761

732

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.

(c) Other business activities reflect the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business.

(d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments.

(e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments.

(f) Acquisition and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business.

(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, costs related to our business process transformation program, as well as the impact of divestiture gains and losses.

(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs.

(i) Defined as income before provision for taxes on income.

* Calculation not meaningful.

ZOETIS INC.

SEGMENT (a) EARNINGS

(UNAUDITED)

(millions of dollars)

Twelve Months Ended

December 31,

% Change

2025

2024

Total

Foreign

Exchange

Operational (b)

U.S.:

Revenue

5,097

5,074

—

Cost of sales

842

936

(10

—

(10

Gross profit

4,255

4,138

—

Gross margin

83.5

81.6

Operating expenses

817

805

—

Other (income)/deductions-net

—

)

U.S. Earnings

3,438

3,336

—

International:

Revenue

4,254

4,102

Cost of sales

1,312

—

Gross profit

2,942

2,790

Gross margin

69.2

68.0

Operating expenses

677

671

Other (income)/deductions-net

International Earnings

2,264

2,118

Total Reportable Segments

5,702

5,454

Other business activities (c)

(562

)

(562

)

—

Reconciling Items:

Corporate (d)

(1,240

)

(1,213

)

Purchase accounting adjustments (e)

(128

)

(140

)

Acquisition and divestiture-related costs (f)

)

(18

)

(89

Certain significant items (g)

(82

)

(79

)

Other unallocated (h)

(328

)

(309

)

Total Earnings (i)

3,360

3,133

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.

(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs.

(i) Defined as income before provision for taxes on income.

* Calculation not meaningful.