Shares of Zoetis (NYSE:ZTS), a leading animal health company, tumbled 5.09% in pre-market trading on Tuesday following the release of its third-quarter 2025 financial results. Despite beating earnings expectations, the company's revenue fell short of analyst estimates, raising concerns among investors.
Zoetis reported quarterly revenue of $2.400 billion, marking a slight increase of 0.50% from the same period last year. However, this figure missed the analyst consensus estimate of $2.421 billion by 0.44%. The revenue shortfall appears to be the primary driver behind the stock's pre-market decline, overshadowing the company's earnings beat.
On a positive note, Zoetis posted adjusted earnings per share (EPS) of $1.70, surpassing the analyst consensus estimate of $1.62 by 4.81%. This represents a 7.59% increase from the $1.58 per share reported in the same quarter of the previous year. The company also provided its full-year outlook, projecting revenue between $9,400 million and $9,475 million, with adjusted diluted EPS expected to fall in the range of $6.30 to $6.40. Despite these forward-looking projections, investors seem to be focusing on the revenue miss, leading to the significant pre-market sell-off.