Slides
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Third Quarter 2026 Financial Results November 5, 2026
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2 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements This presentation contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance; future guidance, future operating models, R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; expectations regarding competing products; expectations regarding financial impact of divestitures; disruptions in our global supply chain; customers and employees; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions;future use of cash, dividend payments and share repurchases; foreign exchange rates, tax rate, tariffs, changes in tax regimes and laws any changes thereto; possible impacts of the Fiscal Year Alignment; and other future events. These statements are not guarantees of future performance or actions. Forward- looking statements are subject to risks and uncertainties.If one or more of these risks or uncertaintiesmaterialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and descriptionof risks, uncertaintiesand other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com,or on request from Zoetis. Non-GAAP Financial Information We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share, operational results (which exclude the impact of foreign exchange) and organic operational results (which exclude the impact of foreign exchange and certain acquisitions and divestitures), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance.The non-GAAP financial measures included in this presentation and our other disclosures should not be considered alternatives to measurementsrequired by GAAP, such as net income, operating income, and revenue growth, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliationsof non-GAAP financial measures and the most directly comparable GAAP financial measures are available on the applicable slide or in the appendix to this presentation.
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3 THIRD QUARTER FINANCIAL RESULTS Zoetis Performance Key Messages Q3 results in line with expectations amid continued pressure in Companion Animal Growth in International markets, Livestock, and Diagnostics helped balance performance Focused on defending leadership positions in key franchises through targeted commercial actions, with signs of progress On track to meet 2026 pipeline milestones, including accelerated approvals and launches for select products Narrowed full-year revenue guidance to (2)% to (1)% and raised Adj. EPS guidance to $6.25 to $6.35 Q3 REVENUE1 $2.4B 0% Volume | (1)% Price (1)% YoY Q3 ADJ. NET INCOME2 $720M (7)% YoY Q3 ADJ. DILUTED EPS2 $1.75 1% YoY 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items.
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4 THIRD QUARTER FINANCIAL RESULTS Taking Action to Maintain Leadership & Drive Growth Sharpening Commercial Execution • Promotional defense slowed U.S. Dermatology share loss to 4pp1 in Q3, compared to 7pp1 in Q2 through focused DTC, Apoquel Chew conversion and promotional activities • Targeted cross-portfolio promotion helped sustain Simparica Trio’s market-leading position in the U.S. with ~23%2 clinic patient share, as flea, tick, and heartworm visits fell ~11%3 • Invested in scientific studies and launched the Medical Affairs Hub to support vets Accelerating Science-to-Scale Innovation • Received U.S. FDA approval for Convenia RTU for Dogs, ahead of schedule • Launched Lenivia in Great Britain and received Swiss approval for Portela, with high veterinarian and pet owner satisfaction in launched markets External Business Development Opportunities • VitalRADS and Veterinary Pathology Group (VPG) contributed to Q3 Diagnostics growth as integration continued • Continued to pursue bolt-on opportunities in high-growth, strategically aligned areas Capital Allocation & Cost Management • Delivering against enterprise cost and productivity program to drive operating efficiencies • Returning excess capital to shareholders through dividends and repurchases 1 Represents the sequential change in Kynetec clinic-channel patient share for canine patients only: Q3 compares end -September with end-June 2026; Q2 compares end-June with end-March 2026. Excludes alternative channels, as well as specialty and emergency practices and MARS -owned practices. Market is defined as products with a primary indication addressing canine pruritus and atopic dermatitis and excludes steroids and antihistamines. 2 Kynetec clinic-channel patient share for canine patients only, as of the end of September 2026. Excludes alternative channels, a s well as specialty and emergency practices and MARS-owned practices. 3 Kynetec national visit data, as of September 2026.
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5 THIRD QUARTER FINANCIAL RESULTS Advancements in Innovation Zoetis continued to advance innovation through lifecycle and geographic expansions in the quarter Convenia® RTU for Dogs Received U.S. FDA approval for the treatment of susceptible bacterial skin infections in dogs. This milestone represents the second major market approval this year, both achieved ahead of expected timelines. Simparica Trio® Received U.S. Food and Drug Administration Emergency Use Authorization for the treatment of New World screwworm infestations in dogs and puppies. Lenivia® Three month long-acting monoclonal antibody therapies that manage osteoarthritis pain in dogs with a single injection launched in Great Britain. Portela® Three month long-acting monoclonal antibody that manages osteoarthritis pain in cats with a single injection was approved in Switzerland. Vanguard® crLyme Received an additional claim in Canada to help protect dogs against subclinical arthritis caused by Borrelia burgdorferi. Vanguard® B Oral Received an additional claim in Brazil to help protect dogs against Bordetella bronchiseptica. Alfaxan® Multidose 4% Approved in Japan and Mexico for sedation of cats. Alfaxan® Forte Approved in New Zealand for sedation of cats and for use in dogs and cats to induce and maintain anesthesia. Vanguard® Rabies Approved in China to protect dogs and cats against rabies. Fostera® PRRS Needle-free Microdose Approved in the U.S. and Mexico to help protect pigs against porcine reproductive and respiratory syndrome. Poulvac® Bron Received an additional U.S. label claim for protection against infectious bronchitis virus in chickens, extending Zoetis’ response to evolving strains through an existing vaccine.
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6 Expected Blockbusters2 Accelerated Accomplished Next-Gen Chemistry Dx1 Long-Acting Cytopoint Simparica Duo HVT-ND THIRD QUARTER FINANCIAL RESULTS From Near-Term Execution to Long-Term Market Creation Expected Approvals 2026 Pioneering Emerging Frontiers TAMs4 Chronic Kidney Disease #1 cause of death in cats, without treatments that directly impact disease. Prevalence estimated at ~8% for dogs and ~15% for cats over the total population $3.0 - 4.0B 7 assets and diagnostics biomarkers under development Oncology #1 cause of death in dogs and #2 in cats. 1 in 4 dogs and 1 in 5 cats will develop cancer in their lifetime, and these ratios are growing as pets live longer $1.2 - 1.7B 4 assets and diagnostics biomarkers under development Cardiology Current treatments are not optimized for sick patients, driving low compliance. Prevalence estimated at ~6%3 of the total dog population $0.8 - 1.0B 9 assets and diagnostics biomarkers under development Obesity & Metabolic Diseases Nearly ~60% of dogs and cats are obese, and compliance with dietary adjustments being as low as 30% $0.8 - 1.0B 2 assets under development Anxiety 70%+ of dogs face anxiety challenges, with no existing gold standard of care $0.7 - 1.4B 3 assets under development 1 Completion of final validation expected in 2026 2 A blockbuster has annual sales of at least $100 million 3 With 4% of the total dog population in early, treatable stages 4 TAM represents the overall market opportunity within Animal Health, covering the full range of relevant species, customer segments, and areas of unaddressed demand. Addressable market reflects treatable conditions, not all incidence of condition Note: Assets currently under development and have not yet received regulatory approval Source: POP survey 2024; Kx Advisors Market Research 2024; Pet Obesity Management Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025-2034, Salonen, M., Sulkama, S., Mikkola, S. et al. Prevalence, comorbidity, and breed differences in canine anxiety in 13,700 Finnish pet dogs. Sci Rep 10, 2962 (2020), Veterinary Cancer Society and AVMA
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7 7 THIRD QUARTER FINANCIAL RESULTS Q3 Segment Highlights1 United States SEGMENT REVENUE $1.2B (6)% YoY COMPANION ANIMAL REVENUE $1.0B (8)% YoY LIVESTOCK REVENUE $0.3B 5% YoY International SEGMENT REVENUE $1.1B 4% YoY COMPANION ANIMAL REVENUE $0.6B 0% YoY LIVESTOCK REVENUE $0.5B 9% YoY 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures.
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8 THIRD QUARTER FINANCIAL RESULTS Reported to Organic Operational Results Understanding Third Quarter 2026 Underlying Results (millions of dollars) Third Quarter 2026 2025 Reported Change Foreign Exchange Divestitures Organic Operational1 U.S. Companion animal $980 $1,069 (8)% —% —% (8)% Livestock 266 253 5% —% —% 5% 1,246 1,322 (6)% —% —% (6)% International Companion animal 585 581 1% 1% —% —% Livestock 531 493 8% 2% (3)% 9% 1,116 1,074 4% 1% (1)% 4% Total Companion animal 1,565 1,650 (5)% —% —% (5)% Livestock 797 746 7% 1% (1)% 7% Contract manufacturing & human health 29 26 12% (3)% —% 15% $2,391 $2,422 (1)% 1% (1)% (1)% 1 Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures.
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9 THIRD QUARTER FINANCIAL RESULTS Adjusted Income Statement Highlights (millions of dollars, except per share data) Third Quarter 2026 2025 Reported Change Foreign Exchange Operational1 Divestitures Organic Operational2 Revenue $2,391 $2,422 (1)% 1% (2)% (1)% (1)% Adjusted Cost of Sales3 694 695 —% —% —% as a percent of revenue4 29.0% 28.7% NA NA NA Adjusted SG&A Expenses3 571 572 —% —% —% Adjusted R&D Expenses3 174 174 —% —% —% Adjusted Operating Expenses5 749 751 —% —% —% Effective Tax Rate on Adjusted Income3 19.6% 18.6% NA NA NA Adjusted Net Income3 $720 $754 (5)% 2% (7)% —% (7)% Adjusted diluted EPS3 1.75 1.70 3% 2% 1% —% 1% NA – Not applicable 1 Operational results (a non-GAAP financial measure) excludes the impact of foreign exchange. 2 Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures. 3 Adjusted net income and its components and adjusted diluted EPS (non-GAAP financial measures) are defined as reported GAAP net income and its components, excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. Adjusted cost of sales, adjusted selling, general and administrative (SG&A) expenses and adjusted research and development (R&D) expenses are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Effective tax rate on adjusted income (a non-GAAP financial measure) equals the adjusted provision for taxes on income (a non-GAAP financial measure) divided by adjusted income before provision for taxes on income (a non-GAAP financial measure). 4 Adjusted gross margin (a non-GAAP financial measure) was 71.0% in the third quarter of 2026 and 71.3% in the third quarter of 2025. 5 Adjusted operating expenses (a non-GAAP financial measure) of $749 million in the third quarter of 2026 and $751 million in the third quarter of 2025 includes adjusted amortization of intangible assets of $4 million in the third quarter of 2026 and $5 million in the third quarter of 2025.
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10 THIRD QUARTER FINANCIAL RESULTS Key Dermatology Franchise • Promotional defense slowed U.S. Dermatology share loss to 4pp2 in Q3, compared to 7pp2 in Q2 • Commercial defense strategies focused on DTC, Apoquel Chew conversion and promotional activities • Current U.S. Dermatology share of ~80%3 • In Europe, new entrants' promotions drove Apoquel volume declines, countered by targeted clinic-level promotions and a label update • Long-acting Cytopoint is expected to receive U.S. approval in Q4, adding a more convenient option that will help defend dermatology franchise Q3 Franchise Revenue Y oY (Millions of dollars) (16)%1 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Represents the sequential change in Kynetec clinic-channel patient share (defined in footnote 3): Q3 compares end- September with end-June 2026; Q2 compares end-June with end-March 2026. 3 Kynetec clinic-channel patient share for canine patients only, as of the end of September 2026. Excludes alternative channels, as well as specialty and emergency practices and MARS-owned practices. Market is defined as products with a primary indication addressing canine pruritus and atopic dermatitis and excludes steroids and antihistamines.
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11 THIRD QUARTER FINANCIAL RESULTS Simparica Franchise • Simparica Trio maintained its market-leading position in the U.S. with ~23%2 clinic patient share, as flea, tick, and heartworm visits fell ~11%3 • U.S. volume growth was offset by price; Fall promotions reached 11,000+ clinics, up from ~8,300 in Spring • Investing in peer-reviewed studies to support clinical conversations on heartworm prevention • International Simparica franchise growth of 10% was broad-based across Europe and Latin America • Simparica Duo approval is expected by year-end, ahead of schedule, meeting unmet needs and expanding access Q3 Franchise Revenue Y oY (Millions of dollars) 1%1 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Kynetec clinic-channel patient share for canine patients only, as of the end of September 2026. Excludes alternative channels, as well as specialty and emergency practices and MARS-owned practices. 3 Kynetec national visit data, as of September 2026
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12 THIRD QUARTER FINANCIAL RESULTS Osteoarthritis (OA) Pain mAb Franchise • OA pain franchise returned to growth led by new long-acting portfolio • Canine OA pain declined given U.S. Librela headwinds outweighed growth from Lenivia in select International markets • Internationally, Librela showed signs of stabilization, with 97%2 of veterinarians satisfied across key markets • Feline OA pain grew, with Solensia helping expand cat clinic visits despite broader clinic pressure • Lenivia and Portela are fully launched across the EU and Canada. Veterinarian satisfaction is 97%3 for Lenivia and 95%3 for Portela; pet owner satisfaction is 98%3 for both Q3 Franchise Revenue Y oY (Millions of dollars) 2%1 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Kynetec veterinarian market research survey, as of September 2026. 3 Kynetec Wave 1 Canine and Feline OA Pain Trackers (September 2026).
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13 THIRD QUARTER FINANCIAL RESULTS Companion Animal Diagnostics • Diagnostics grew 13%, supported by continued adoption of point-of-care imaging platforms • VitalRADS in the U.S. adds teleradiology and reference lab capabilities • Veterinary Pathology Group (VPG) adds veterinary pathology capabilities in the U.K. and Ireland • U.S. organic growth reflected strong Chemistry performance, increased Imagyst utilization, and reference lab momentum • Diagnostics capabilities continue to serve as a strategic enabler of Zoetis' broader pipeline, supporting early disease detection in oncology, renal disease, and cardiology Q3 Revenue Y oY (Millions of dollars) 13%1 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures.
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14 THIRD QUARTER FINANCIAL RESULTS Livestock • Livestock growth was broad-based across key species and U.S. and International markets • U.S. growth reflected Ceftiofur supply recovery, strong vaccine performance, and swine growth, partially offset by Dectomax destocking as New World screwworm cases remained contained • International growth spanned cattle, fish, and poultry, supported by cattle supply recovery, higher fish vaccination rates, and poultry disease demand Q3 Revenue Y oY (Millions of dollars) 7%1 1 Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures. 2 Livestock revenue shown excludes MFA revenue of $12 million in 3Q25.
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15 THIRD QUARTER FINANCIAL RESULTS Capital Allocation Priorities Reinvest in Our Business • ~$525M invested in our industry-leading R&D capabilities YTD, supporting our future pipeline • ~$335M in Capital Expenditures across manufacturing, R&D, and IT initiatives YTD External Business Development Opportunities • Accelerating Diagnostics through acquisition of VitalRADS, a veterinary teleradiology services platform, and Veterinary Pathology Group (VPG), a multi-specialty veterinary diagnostic laboratory network • Targeting bolt-on acquisitions and complementary technologies Return Cash to Shareholders • $2.4B returned to shareholders YTD through quarterly dividends and share repurchases • Expected to maintain or grow dividend • Disciplined, opportunistic share buybacks; returning excess capital through share repurchases, paced with cash flow, supported by balance sheet strength Balanced approach to invest in growth, deliver shareholder returns, and preserve financial flexibility
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16 THIRD QUARTER FINANCIAL RESULTS 2026 Guidance: Narrowed Revenue, Raised Adj. EPS Revenue $9,220M - $9,320M Adj. Net Income1 $2,600M - $2,640M Adj. Diluted EPS1 $6.25 - $6.35 Organic Operational Growth2 (2)% - (1)% Revenue (7)% - (5)% Adj. Net Income1 1 Adjusted net income (ANI) and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. 2 Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures.
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Appendix 17
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18 THIRD QUARTER FINANCIAL RESULTS 2026 Guidance: Additional Details Selected Line Items (millions of dollars, except per share amounts) Full Year 2026 as of November 5, 2026 Revenue Organic operational growth1 $9,220 to $9,320 (2)% to (1)% Adjusted cost of sales as a percentage of revenue2 Approximately 29.0% Adjusted SG&A expenses2 $2,340 to $2,370 Adjusted R&D expenses2 $705 to $715 Adjusted interest expense and other (income)/deductions-net2 Approximately $215 Effective tax rate on adjusted income2 Approximately 20% Adjusted diluted EPS2 $6.25 to $6.35 Adjusted net income2 Organic operational growth1,3 $2,600 to $2,640 (7)% to (5)% Certain significant items and acquisition and divestiture-related costs4 Approximately $210 Reported diluted EPS $5.50 to $5.60 The guidance reflects foreign exchange rates as of October 20, 2026 and includes the assumed impacts as a result of fluctuations in foreign exchange rates relative to the U.S. dollar compared to weighted average foreign exchange rates from 2025, as noted above. 1 Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures. 2 Adjusted net income and its components and adjusted diluted EPS are defined as reported GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. Adjusted cost of sales, adjusted selling, general and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Effective tax rate on adjusted income (a non-GAAP financial measure) equals the adjusted provision for taxes on income (a non-GAAP financial measure) divided by adjusted income before provision for taxes on income (a non-GAAP financial measure). Adjusted net income and its components, adjusted diluted EPS, and the effective tax rate on adjusted net income, are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. 3 We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational growth to the most directly comparable GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. 4 Primarily includes certain nonrecurring (income)/costs, net related to acquisitions, divestitures and other charges.
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19 THIRD QUARTER FINANCIAL RESULTS Reconciliation Of Reported Growth To Non-GAAP Financial Measures (millions of dollars) Third Quarter 2026 2025 Reported Change Foreign Exchange Divestitures Organic Operational1 Revenue by Product Category Key Dermatology $396 $469 (16)% —% —% (16)% Key Dermatology (international) 130 163 (20)% —% —% (20)% OA Pain mAbs 137 134 2% —% —% 2% OA Pain mAbs (canine) 96 99 (3)% —% —% (3)% OA Pain mAbs (feline) 41 35 17% —% —% 17% OA Pain mAbs (international) 86 76 13% —% —% 13% OA Pain mAbs (international - canine) 63 58 9% 1% —% 8% OA Pain mAbs (international - feline) 23 18 28% (1)% —% 29% Companion animal diagnostics 122 108 13% —% —% 13% Small animal vaccines (international) 85 81 5% 2% —% 3% Revenue by Product Simparica franchise 358 351 2% 1% —% 1% Simparica franchise (international) 99 88 13% 3% —% 10% Simparica Trio 293 280 5% 1% —% 4% Simparica Trio (international) 54 39 38% 2% —% 36% Simparica 64 71 (10)% —% —% (10)% Simparica (international) 45 50 (10)% —% —% (10)% 1 Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures.
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20 THIRD QUARTER FINANCIAL RESULTS International Revenue Performance (millions of dollars) Third Quarter 2026 2025 Reported Change Foreign Exchange Divestitures Organic Operational1 Total International $1,116 $1,074 4% 1% (1)% 4% Australia 104 92 13% 9% —% 4% Brazil 114 105 9% 6% —% 3% Canada 70 76 (8)% —% (10)% 2% Chile 34 33 3% (2)% —% 5% China 61 51 20% 6% —% 14% France 37 35 6% (3)% (1)% 10% Germany 51 62 (18)% (2)% (1)% (15)% Italy 30 34 (12)% (2)% —% (10)% Japan 26 34 (24)% (6)% —% (18)% Mexico 49 42 17% 10% —% 7% Spain 37 36 3% (2)% (2)% 7% United Kingdom 75 79 (5)% 1% (2)% (4)% Other Developed Markets 183 165 11% 1% —% 10% Other Emerging Markets 245 230 7% (2)% (1)% 10% 1 Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures.
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21 THIRD QUARTER FINANCIAL RESULTS U.S. Segment Performance (millions of dollars) Third Quarter 2026 2025 Reported Change Divestitures Organic Operational1 Revenue $1,246 $1,322 (6)% —% (6)% Companion Animal 980 1,069 (8)% —% (8)% Livestock 266 253 5% —% 5% Cost of Sales 222 222 —% Gross Profit 1,024 1,100 (7)% Gross Margin 82.2% 83.2% NA Operating Expenses 194 201 (3)% Other (Income)/Deductions-net — — ** Earnings2 $830 $899 (8)% NA – Not applicable, **Calculation not meaningful 1 Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Defined as income before provision for taxes on income.
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22 THIRD QUARTER FINANCIAL RESULTS International Segment Performance (millions of dollars) Third Quarter 2026 2025 Reported Change Foreign Exchange Divestitures Organic Operational1 Revenue $1,116 $1,074 4% 1% (1)% 4% Companion Animal 585 581 1% 1% —% —% Livestock 531 493 8% 2% (3)% 9% Cost of Sales 347 342 1% —% Gross Profit 769 732 5% 2% Gross Margin 68.9% 68.2% NA NA Operating Expenses 169 169 —% 1% Other (Income)/Deductions-net — — ** ** Earnings2 $600 $563 7% 2% NA – Not applicable, **Calculation not meaningful 1 Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Defined as income before provision for taxes on income.
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Zoetis Closing Slide