ZTS Zoetis Inc.

Overview and Growth

Zoetis Inc. generated $9.47B of revenue in fiscal 2025, with net income of $2.67B and an operating cash inflow of $2.90B. Revenue of $9.47B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $9.26B in fiscal 2024, revenue recorded a 2.3% year-over-year increase. On a per-share basis, diluted EPS was $6.02, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 10.1% from $5.47 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 0.61x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $6.80B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 71.8%, so that share of each revenue unit remained after the cost of revenue reported for the period. After all reported below-operating-line items, the company recorded net income of $2.67B for the fiscal year. The final earnings result represented 28.2% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $3.36B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 35.5%, relating income before taxes directly to revenue. Income tax expense totaled $687.00M, providing the reported tax component that separates pretax and after-tax earnings. Relative to pretax income, the tax provision measured 20.4%, quantifying the portion of pre-tax earnings paid in income tax. Net income equaled 80.2% of period-end equity, showing the earnings generated on shareholders’ book capital.

Liquidity and Capital Structure

The company held $15.47B of assets against $12.14B of liabilities and $3.33B of equity, revealing how the asset base was financed. At period end, current assets of $6.77B compared with current liabilities of $2.23B, defining the company’s short-term resource position. Current assets covered current liabilities by 3.03x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $2.31B, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 103.4% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $9.04B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 2.71x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 58.5%, comparing borrowing with the total asset balance. The liabilities-to-assets relationship was 78.5%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 14.9%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $14.24B in fiscal 2024, the current asset base moved 8.6% and finished higher.

Cash Flow and Earnings Quality

Cash flow from operations was $2.90B, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 1.09x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $621.00M of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 21.4% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $2.28B, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 24.1%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 14.8%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.