Zoetis Inc. stock research
FY2025 Q2
Zoetis (ZTS) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter a year earlier. Gross margin improved versus both periods, as cost of revenue grew at a slower pace than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter a year earlier. Gross margin improved versus both periods, as cost of revenue grew at a slower pace than revenue.
- The strongest observable margin driver is the gross margin reaching its highest level among the three reported quarters. This was supported by revenue growth exceeding the increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter a year earlier, all three metrics were higher and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.6%
Gross profit
$1.8B
Revenue
$2.5B
Cost of revenue
$649.0M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $2.4B | $1.7B | $701.0M | 70.6% |
| Dec 31, 2024 | $2.3B | $1.6B | $707.0M | 69.5% |
| Mar 31, 2025 | $2.2B | $1.6B | $618.0M | 71.9% |
| Jun 30, 2025 | $2.5B | $1.8B | $649.0M | 73.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.7 pts
Year-over-year change
Jun 30, 2024
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross margin reaching its highest level among the three reported quarters. This was supported by revenue growth exceeding the increase in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter a year earlier, all three metrics were higher and gross margin strengthened.
Monitor whether cost of revenue continues to grow at a lower rate relative to revenue or if the trend reverses in subsequent quarters.