Zoetis Inc (NYSE:ZTS) stock rose 2.55% (As on February 13, 11:27:45 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that exceeded analyst expectations and provided an optimistic outlook for 2026. On an organic operational 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. In November, Zoetis acquired Veterinary Pathology Group (VPG), a leading veterinary diagnostic laboratory group with multiple locations across the UK and Ireland.

Moreover, revenue in the U.S. segment was $1.2 billion, a decrease of 2% on a reported basis and flat on an organic operational basis, compared with the fourth quarter of 2024. Sales of companion animal products decreased 1%. A decline in the company’s monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela for dogs and Solensia for cats, was partially offset by growth in the company’s parasiticides portfolio, including ProHeart and the Simparica franchise and key dermatology franchise. Sales of livestock products declined 6% on a reported basis due to the divestiture of the medicated feed additive (MFA) product portfolio and related assets. Revenue in the International segment was $1.1 billion, an increase of 8% on a reported basis. Sales of companion animal products grew 7% on a reported basis and 4% operationally. Growth in the quarter was driven by the company’s parasiticides portfolio, including Simparica Trio, diagnostics and the company’s key dermatology products, Apoquel and Cytopoint. Sales of livestock products increased 9% on a reported basis and 12% on an organic operational basis driven by broad-based growth across all core species including cattle, fish and poultry.

ZTS in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.48, beating the analysts’ estimates for the adjusted earnings per share of $1.40, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 3 percent to $2.39 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue by 0.92%.

Looking ahead, Zoetis provided guidance for fiscal year 2026 that exceeded analyst expectations, projecting adjusted earnings per share between $7.00 and $7.10, above the consensus estimate of $6.82. The company expects revenue between $9.825 billion and $10.025 billion, representing organic operational growth of 3% to 5%.