Zoetis Inc. is facing substantial financial difficulties following its Q1 2026 earnings report, which revealed a revenue of $2.26 billion, falling short of analyst expectations by 5.3%. The company has revised its full-year revenue guidance downward, citing weaker demand in the companion animal sector and competitive threats. With a year-to-date stock drop of 39%, Zoetis's market position appears increasingly vulnerable, although it plans to strengthen its portfolio with the pending acquisition of Neogen’s animal genomics business in H2 2026.