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Zoetis shares slide as pet care demand softens and guidance is cut
Diamond Hill Capital Large Cap Strategy said Zoetis underperformed after flat organic revenue growth and lower full-year guidance amid softer US companion-animal demand.
Diamond Hill Capital Large Cap Strategy, in its Q2 2026 investor letter, pointed to Zoetis Inc. as a detractor as growth weakened in pet care, citing softer US companion-animal demand.
The letter said Zoetis underperformed after the company reported flat organic revenue growth and lowered full-year guidance, which Diamond Hill linked to fewer veterinary visits and a more competitive market.
Zoetis shares were at $77.29 as of July 31, 2026, and the stock has fallen 47.91% over the past 52 weeks, according to the investor letter.
Diamond Hill also said the results raised concerns that slower growth in Zoetis' legacy portfolio could create a near-term earnings gap before newer pipeline products contribute more meaningfully.