Zoetis Inc (NYSE:ZTS) stock rose 0.021% (As on August 6, 11:26:31 AM UTC-4, Source: Google Finance) after the company raised annual forecast and beat second-quarter estimates, driven by strong demand for its medicines and vaccines for pets. During the quarter ended June 30, the company’s companion animal segment, which includes treatments for dogs and cats, posted an 8% increase in revenue to $1.79 billion. The growth was driven by robust sales of its flea, tick and heartworm combination product Simparica Trio, and its pain and dermatology drugs such as Librela, Solensia, Apoquel and Cytopoint. Adjusted net income of $783 million, grew 10% on a reported basis and 10% on an organic operational basis.

Moreover, Key Dermatology posted $460 million, growing 11%. The global lifestyle portfolio contributed organic operational growth of 6% on $638 million in revenue. The Livestock business has outperformed the expectations thus far this year, growing 7% on an organic operational basis year-to-date compared to low single-digit market growth projections.

ZTS in the second quarter of FY25 has reported the adjusted earnings per share of $1.76, beating the analysts’ estimates for the adjusted earnings per share of $1.62. The company had reported the adjusted revenue growth of 4 percent to $2.46 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $2.41 billion. The organic operational revenue growth was down, driven by 4% price and 4% volume.

The New Jersey-based company expects 2025 revenue to be between $9.45 billion and $9.60 billion, compared with its earlier range of $9.43 billion to $9.58 billion. It also raised its forecast for annual adjusted profit per share to between $6.30 and $6.40, from $6.20 to $6.30 projected earlier. Analysts on average were expecting annual revenue of $9.50 billion and earnings of $6.24 per share, according to data compiled by LSEG. Zoetis said its updated forecast reflects foreign exchange rates and the impact of enacted and assumptions on announced tariffs. The company now expect adjusted net income to be in the range of $2.825 billion to $2.875 billion, reflecting operational growth of 5.5% to 7.5% on an organic operational basis. The increase in the expected adjusted net income is driven by improved margin expectations due primarily to lower manufacturing costs, the higher revenue outlook and expense management, partially offset by the increased impact of tariffs.