How does Zoetis (ZTS) make money?

Zoetis (ZTS) generates revenue primarily from Horses, which accounted for 45.7% of total revenue in TTM through Q1 2026. The company reported $9.51B in revenue and converted 27.8% of it into net profit, equivalent to roughly $2.64B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Zoetis (ZTS)?

Zoetis (ZTS) reported a gross profit margin of 70.8% in TTM through Q1 2026, equivalent to $6.73B in gross profit on $9.51B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Zoetis (ZTS)?

Zoetis (ZTS) reported an operating profit margin of 37.6% in TTM through Q1 2026, equivalent to $3.57B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Zoetis (ZTS)?

Zoetis (ZTS) reported a net profit margin of 27.8% in TTM through Q1 2026, equivalent to $2.64B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Zoetis (ZTS) profitable?

Yes. Zoetis (ZTS) reported $2.64B in net income for TTM through Q1 2026, with a net profit margin of 27.8%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Zoetis (ZTS) invest in research and development?

Zoetis (ZTS) invested $721M in research and development during TTM through Q1 2026, roughly 7.6% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Zoetis (ZTS) spend on capital expenditures?

Zoetis (ZTS) spent $582M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 6.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Zoetis (ZTS) generate?

Zoetis (ZTS) generated $2.14B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 22.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Zoetis (ZTS)?

Zoetis (ZTS) had an effective tax rate of 20.1% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Zoetis (ZTS)?

Zoetis (ZTS) reports revenue across 6 reportable product segments, led by Horses at 45.7% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Zoetis (ZTS) generate most of its revenue?

United States Segment is the largest geographic market for Zoetis (ZTS), accounting for 53.2% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Zoetis Makes Money: 2026 Visual Revenue Map

Zoetis (ZTS) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 7, 2026).

Zoetis (ZTS) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Zoetis (ZTS), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Horses	$4.34B	45.7%
Dogs and Cats	$3.27B	34.4%
Cattle	$1.05B	11.1%
Swine	$330M	3.5%
Poultry	$306M	3.2%
Fish	$206M	2.2%
Total	$9.51B	100%

Horses$4.34B
Dogs and Cats$3.27B
Cattle$1.05B
Swine$330M
Poultry$306M
Fish$206M
Total$9.51B

Zoetis (ZTS) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Zoetis (ZTS), TTM through Q1 2026
Region	Revenue (USD)	% of total
United States Segment	$5B	53.2%
International Segment	$4.4B	46.8%
Total	$9.4B	100%

United States Segment
International Segment
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Zoetis (ZTS) reports revenue across 6 reportable product segments; the largest segment was Horses at 45.7%, followed by Dogs and Cats (34.4%) and Cattle (11.1%). Geographically, United States Segment accounted for 53.2% of revenue, followed by International Segment (46.8%).

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