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# Zoetis CFO Says 2027 Plan Assumes No Relief From Pet-Owner Spending Or Competition
- URL: https://www.bullished.co/zoetis-cfo-says-2027-plan-assumes-no-relief-from-pet-owner-spending-or-competition-792c07f6/
- Published: 2026-11-05T19:07:44.000Z
- Updated: 2026-11-05T19:07:44.000Z
- Description: Jay Saccaro's first call as CFO paired a raised EPS outlook with a cautious 2027 stance and a 7.33% share drop.
- Author: Matteo Parrino
- Tags: Earnings, ZTS, Industry: Healthcare

[Zoetis](https://www.bullished.co/tag/zts/) will build its 2027 budget assuming no recovery in pet-owner spending and no easing of competition, CFO Jay Saccaro said on the animal-health company's third-quarter earnings call on Thursday, his first since joining. Zoetis shares fell 7.33% to $82.66 in Thursday trading, even as the company raised full-year adjusted earnings per share guidance to [$6.25 to $6.35](https://wtop.com/national/2026/11/zoetis-q3-earnings-snapshot/?ref=bullished.co).

## A cautious 2027 starting point

Zoetis, which makes medicines, vaccines and diagnostics for pets and livestock, is mid-budget, Saccaro said. Management will be "conservative or prudent," he said, and will not assume a change in macro trends or competitive dynamics. Asked by a JPMorgan analyst whether Wall Street's numbers were in the right place, he said he was "hesitant to comment on street models."

The pipeline, he said, is "not going to have a huge impact in 2027." Launch revenue should build later in the year and into 2028\. Management will revisit the financial metrics it gives on guidance and plans to update on the fourth quarter call.

A Stifel analyst asked about the implied fourth quarter. Saccaro said Zoetis expects sales to fall in the high single digits from the third quarter to the fourth, partly because of third-quarter promotions. He called that in line with expectations.

## Promotions slow dermatology share loss

CEO Kristin Peck said promotions cut U.S. dermatology share loss to four points in the third quarter, from about seven in the second. Her goal, she said, is "to get that to zero." Zoetis, she added, has seen competitive responses but nothing unexpected.

The quarter's revenue was $2.4 billion, down 1% on both a reported and organic operational basis. U.S. revenue fell 6% to [$1.2 billion](https://www.benzinga.com/markets/earnings/26/11/62940213/zoetis-lifts-annual-outlook-while-braces-for-cautious-pet-economy?ref=bullished.co), while international rose 4% to $1.1 billion. Key U.S. dermatology revenue fell 13% to $266 million, and international key dermatology fell 20% to $130 million. Livestock rose 7% to $797 million.

Adjusted EPS [was $1.75](https://www.benzinga.com/markets/earnings/26/11/62940213/zoetis-lifts-annual-outlook-while-braces-for-cautious-pet-economy?ref=bullished.co). Peck said veterinary service costs in developed pet care markets have risen 50% since 2022, and U.S. clinic visits are down 3% year to date.

## Guidance and the next catalysts

Zoetis narrowed revenue guidance to [$9.22 billion to $9.32 billion](https://wtop.com/national/2026/11/zoetis-q3-earnings-snapshot/?ref=bullished.co) and raised adjusted net income guidance to $2.6 billion to $2.64 billion. Peck said it expects U.S. approval of long-acting Cytopoint in the fourth quarter, with a launch in the first half of next year.

Zoetis will report fourth-quarter results with more on 2027 and its guidance metrics.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [Zoetis (ZTS) Q3 Earnings and Revenues Top Estimates](https://au.finance.yahoo.com/news/zoetis-zts-q3-earnings-revenues-121509941.html?ref=bullished.co) — Yahoo Finance
- [Zoetis: Q3 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/11/zoetis-q3-earnings-snapshot/?ref=bullished.co) — wtop.com
- [Zoetis Lifts Annual Outlook While Braces For Cautious Pet Economy](https://www.benzinga.com/markets/earnings/26/11/62940213/zoetis-lifts-annual-outlook-while-braces-for-cautious-pet-economy?ref=bullished.co) — benzinga.com
- [No Greyhounds Here: Pet-Health Giant Zoetis Reverses 30% Monthlong Sprint | Investor's Business Daily](https://www.investors.com/news/technology/zoetis-stock-zoetis-earnings-q3-2026/?ref=bullished.co) — investors.com
- [Zoetis (ZTS) Reports Q3 Earnings: What Key Metrics Have to Say](https://finance.yahoo.com/markets/stocks/articles/zoetis-zts-reports-q3-earnings-133004370.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Zoetis

- [Zoetis Names Cannes Festival President Iris Knobloch To Board, Expanding It To 13 Seats](https://www.bullished.co/zoetis-names-cannes-festival-president-iris-knobloch-to-board-expanding-it-to-13-seats-3773a83b/)

[All Zoetis (ZTS) coverage →](https://www.bullished.co/tag/zts/)