Zoetis Inc. stock research
FY2025 Q3
Zoetis (ZTS) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was slightly lower than the prior quarter, while gross profit decreased at a similar pace, leading to a lower gross margin. Compared to the same quarter last year, revenue was stable, gross profit was slightly higher, and gross margin improved as cost of revenue declined.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was slightly lower than the prior quarter, while gross profit decreased at a similar pace, leading to a lower gross margin. Compared to the same quarter last year, revenue was stable, gross profit was slightly higher, and gross margin improved as cost of revenue declined.
- The gross margin weakened sequentially as cost of revenue decreased less than revenue, but improved year-over-year as cost of revenue declined while revenue held steady.
- Compared to the prior quarter, revenue and gross profit were both lower, and gross margin weakened. Compared to the same quarter last year, revenue was essentially unchanged, gross profit was slightly higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.5%
Gross profit
$1.7B
Revenue
$2.4B
Cost of revenue
$683.0M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+0.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $2.4B | $1.7B | $683.0M | 71.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-2.1 pts
Year-over-year change
Sep 30, 2024
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as cost of revenue decreased less than revenue, but improved year-over-year as cost of revenue declined while revenue held steady.
Compared to the prior quarter, revenue and gross profit were both lower, and gross margin weakened. Compared to the same quarter last year, revenue was essentially unchanged, gross profit was slightly higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its movement was the primary factor behind the mixed margin performance.