Zoetis Q2 2025: Navigating Contradictions in Librella Growth, Tariffs, and Market Competition

Librella Growth Expectations and Challenges, Impact of Tariffs on Financial Performance, Librela Adoption and Growth Trajectory, Impact of Competition and Market Share, and Price Contribution and Cost Management are the key contradictions discussed in Zoetis's latest 2025Q2 earnings call.



Revenue and Operational Growth:
- Zoetis reported revenue of $2.5 billion for Q2 2025, growing 4% on a reported basis and 8% on an organic operational basis.
- The growth was driven by strong performance across species, geographies, and channels, with the U.S. growing 7% excluding the impact of the MFA divestiture.

Companion Animal Segment Performance:
- Companion Animal revenue contributed $1.8 billion, growing 8% operationally in Q2.
- Growth was driven by franchises like Simparica and Key Dermatology, with Simparica posting $448 million in revenue, up 17%, and Key Dermatology contributing $460 million, up 11%.

International Segment Expansion:
- The International segment grew 9% organically, supported by strong performance in Simparica and Key Dermatology franchises.
- This growth was attributed to effective field force engagement and increased market expansion in new patient adoption and compliance.

Livestock Portfolio Strength:
- Livestock business grew 7% organically year-to-date, outperforming market expectations.
- This was driven by broad industry dynamics, including rising U.S. protein consumption and strong execution across species.