Zoetis (ZTS) shares plummeted 7.04% during intraday trading on Friday, extending a significant selloff from the previous session.

The sharp decline follows the animal health company's disappointing first-quarter earnings report, which was released the prior day. Zoetis reported adjusted earnings per share of $1.53, missing the consensus estimate of $1.62, while revenue of $2.26 billion also fell short of the $2.31 billion expected by analysts. More critically, the company lowered its full-year adjusted EPS guidance to a range of $6.85–$7.00, down from the prior $7.00–$7.10 range, and revised its annual revenue guidance downward.

Management cited a more challenging operating environment than anticipated, noting that heightened price sensitivity among pet owners has led to fewer veterinary visits. This was reflected in an 8% decline in U.S. market revenue to $1.1 billion, with companion animal product sales dropping 11%. In response to the weak results and reduced outlook, several analysts downgraded the stock and slashed their price targets. Ameriprise downgraded Zoetis to Hold from Buy, while UBS, Jefferies, Stifel, and JPMorgan all significantly reduced their price targets, contributing to the sustained selling pressure.