How Does Zoetis Make its Money?
Zoetis is the world’s largest animal health company, spun off from Pfizer in 2013. The company discovers, develops, manufactures, and commercializes medicines, vaccines, diagnostics, and technology for companion animals (pets) and livestock. Zoetis benefits from powerful secular trends: pet humanization driving increased spending on veterinary care, and rising global protein demand requiring healthier and more productive livestock. The company’s blockbuster parasiticide Simparica Trio for dogs and its growing diagnostics portfolio are key growth engines.
Zoetis (ZTS) Business Model
Zoetis operates in the animal health sector. Below is a summary of Zoetis’ revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Zoetis’ 2024 fiscal year filings with the SEC.
Zoetis Competitors
Zoetis’s key competitors and comparable public companies in the animal health sector include Eli Lilly, Pfizer, and Johnson & Johnson. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Zoetis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Zoetis Competitors
Zoetis’s key competitors and comparable public companies in the animal health sector include Eli Lilly, Pfizer, and Johnson & Johnson. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Zoetis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Zoetis Competitors
Zoetis’s key competitors and comparable public companies in the animal health sector include Eli Lilly, Pfizer, and Johnson & Johnson. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Zoetis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Zoetis Competitors
Zoetis’s key competitors and comparable public companies in the animal health sector include Eli Lilly, Pfizer, and Johnson & Johnson. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Zoetis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Zoetis Competitors
Zoetis’s key competitors and comparable public companies in the animal health sector include Eli Lilly, Pfizer, and Johnson & Johnson. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Zoetis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Zoetis Competitors
Zoetis’s key competitors and comparable public companies in the animal health sector include Eli Lilly, Pfizer, and Johnson & Johnson. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Zoetis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Companion Animal Products | $5,600 | $5,000 | +12.0% |
| Livestock Products | $3,300 | $3,200 | +3.1% |
| Total Revenue | $9,100 | $8,500 | +7.1% |
Companion Animal Products — 62% of Revenue
Livestock Products — 36% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $9,100 | $8,500 |
| Cost of Revenue | $2,800 | $2,700 |
| Gross Profit | $6,300 | $5,800 |
| Operating Expenses | $3,000 | $2,800 |
| Operating Income | $3,300 | $3,000 |
| Net Income | $2,700 | $2,300 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 69.2%
- Operating Margin: 36.3%
- Revenue Growth: 7.1%
Is Zoetis Profitable?
Yes, Zoetis is profitable. The company reported net income of $2,700 on total revenue of $9,100. With an operating margin of 36.3%, Zoetis demonstrates solid profitability for the animal health sector. The gross margin of 69.2% reflects Zoetis’ pricing power and cost structure.
What to Watch
- Simparica franchise growth and market share gains versus Elanco and Boehringer
- Point-of-care diagnostics expansion at veterinary clinics
- Librela (monoclonal antibody for pet pain) global uptake and new indications
- Livestock portfolio performance amid global protein demand trends
Zoetis (ZTS) Financial Summary
Zoetis (ZTS) is an animal health company that generated $9,100 in total revenue in fiscal year 2024. Revenue grew 7.1% year-over-year. The company earned $2,700 in net income, making it profitable. For a deeper look at Zoetis’ revenue breakdown, business segments, and financial performance, review the detailed analysis above.