Zoetis, a leading animal healthcare company based in New Jersey, has raised its annual forecast for 2025 following a robust second-quarter performance driven by increased demand for pet medicines and vaccines. The company now anticipates annual revenues between $9.45 billion and $9.60 billion, slightly up from its previous projections, and has raised its adjusted profit forecast per share to $6.30–$6.40. Analysts had estimated annual revenue at $9.50 billion and earnings of $6.24 per share.
In the quarter ending June 30, Zoetis’ companion animal segment, which includes treatments for dogs and cats, generated an 8% revenue increase to $1.79 billion. This growth was fueled by strong sales of its Simparica Trio flea, tick, and heartworm treatment, as well as its pain and dermatology products including Librela, Solensia, Apoquel, and Cytopoint. The company's overall quarterly revenue rose 4% to $2.46 billion, exceeding expectations, while adjusted earnings per share reached $1.76, surpassing the $1.62 consensus. Zoetis also noted that its forecast adjustments reflect currency exchange rates and tariff assumptions. The stock surged about 9% in premarket trading following the announcement.
The surge in demand for pet healthcare products aligns with a broader trend of increased pet ownership and spending in the United States. In 2023, Americans spent $147 billion on pets, reflecting a growing commitment to pet care. This trend is further evidenced by the expansion of companies like Chewy, which opened its first in-person veterinary clinic in Austin, Texas, in January 2025. The clinic offers a comprehensive range of services, including routine wellness checkups, urgent care, and surgeries, integrating advanced technology with customer service to ensure a convenient experience for pets and their owners.
However, the rising costs associated with pet care have raised concerns among pet owners. A recent study revealed that over half of U.S. pet owners skipped or declined veterinary care in the past year, primarily due to financial barriers. Among these, 71% cited cost as the main reason, regardless of income level. This trend underscores the need for affordable and accessible veterinary services to ensure the well-being of pets across the country.
In response to these challenges, some companies are introducing innovative solutions to make pet healthcare more accessible. For instance, PetsCare.com offers AI-driven health reports generated from a single photo of a pet, providing instant insights into potential health issues. This technology aims to empower pet owners to monitor their pets' health proactively, potentially reducing the need for frequent veterinary visits and associated costs.
As the pet care industry continues to evolve, the balance between innovation, accessibility, and affordability remains crucial. Companies like Zoetis and Chewy are at the forefront of this transformation, striving to meet the growing demand for quality pet healthcare while addressing the financial challenges faced by many pet owners. The ongoing developments in this sector highlight the importance of continued investment in pet health and the need for solutions that cater to the diverse needs of pet owners nationwide.
