Zoetis Inc. (ZTS) shares plummeted 5.99% during intraday trading on Thursday, marking a sharp reversal from earlier gains.

The animal health company had initially risen in pre-market trading after reporting fourth-quarter adjusted earnings of $1.48 per share, surpassing the $1.40 estimate, and revenue of $2.39 billion, topping expectations of $2.36 billion. The company also issued 2026 adjusted profit guidance of $7.00 to $7.10 per share, above Wall Street estimates, citing steady pet-medicine demand.

Despite the positive earnings beat and upbeat annual forecast, the stock turned negative during the regular session. The decline occurred even as analysts noted the strong results should alleviate some concerns about near-term growth, suggesting the move may reflect profit-taking or broader sector weakness.