Updates share move, Adds CEO comment in paragraph 4,6 and analyst comment in paragraph 8

By Sahil Pandey

May 7 (Reuters) - Zoetis ZTS.N on Thursday cut its full-year profit forecast and reported first-quarter results below Wall Street estimates, citing weaker U.S. demand as price-sensitive pet owners delayed veterinary visits and cut spending on premium treatments.

Shares of the animal health company fell about 21% in morning trading.

The results highlight a broader slowdown in veterinary clinic visits, as several years of rising prices and a more cautious consumer environment weigh on demand for routine care and higher-end pet treatments.

Pet owners were delaying routine visits, extending dosing cycles and opting for lower-cost alternatives, Zoetis CEO Kristin Peck said. This reflects growing pressure on discretionary spending in pet healthcare.

Executives also pointed to intensifying competition across key categories such as dermatology and parasiticides.

Peck said there were "more entrants across more markets," with rivals leaning heavier on aggressive pricing and incentives for extended periods to gain a share of the soft market.

The company said it was stepping up efforts to support demand through targeted direct-to-consumer initiatives, alongside measures to improve engagement with veterinarians.

Leerink Partners analyst Daniel Clark said U.S. companion-animal sales came in well below expectations, citing heightened competition and price sensitivity as key drivers of softer demand for Zoetis’ products.

Zoetis lowered its 2026 adjusted earnings per share forecast to $6.85–$7.00 from $7.00–$7.10, with the midpoint below analysts’ estimate of $7.02.

The company also cut its annual revenue forecast to $9.68 billion–$9.96 billion from $9.83 billion–$10.03 billion.

Zoetis reported adjusted profit of $1.53 per share and revenue of $2.26 billion for the three months ended March 31. Analysts on an average expected a profit of $1.61 per share on a revenue of $2.31 billion, according to data compiled by LSEG.