Track market-moving stories before they get noisy

Alphabet (GOOG -4.05%) (GOOGL -4.03%) has almost doubled over the past year, and its shares have handily outperformed the S&P 500 year to date. The online advertising giant continues to post high revenue growth while boosting margins.

While ads are still a major part of Alphabet's revenue, that's not what is attracting most investors. The company has positioned itself at the center of multiple AI opportunities, which have the potential to provide long-term market-beating returns at current levels.

These are some of the reasons investors are still excited about Alphabet.

Image source: Getty Images.

Cloud revenue is surging Google Cloud has become the most important part of Alphabet's business. The growth in cloud computing has quickly turned it into a large slice of total sales that could eclipse advertising revenue within a decade.

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Alphabet generated $24.8 billion from Google Cloud, compared to $94.5 billion in Google Services revenue, which is mostly from online ads. The cloud segment also grew by 82% year over year, compared to a 17% growth rate for Google Services.

The differences between those growth rates indicate why Google Cloud could become a larger part of the business than online ads. Its operating margins are also improving vastly. Google Cloud delivered $2.8 billion in net operating income in second-quarter 2025, and that figure more than tripled to $8.8 billion in the most recent quarter.

Google Cloud also reached a $514 billion backlog, with Gemini Enterprise playing a key role. It reached that level thanks to more than $50 billion in sequential growth. Nearly 90% of the Fortune 500 uses this feature, and as their budgets expand, so will Google Cloud's revenue.

Gemini reaches 950 million monthly active users Gemini was Alphabet's answer to ChatGPT. It was only a few years ago when bearish investors sounded the alarm about ChatGPT biting into Google's search engine market and putting the company in a challenging position.

Sometimes, the bears can overestimate risks, and that presented a compelling buy-the-dip opportunity for investors. The Gemini app recently crossed 950 million monthly active users, and the Q2 earnings call transcript offered more details.

Alphabet said that Omni, a feature in Gemini that lets users create videos based on prompts, experienced a 40% increase in daily active users creating videos on the Gemini app. The company is also working on Gemini 4, which is a more advanced AI model.

It's also attracting businesses. Gemini Enterprise is changing how companies create AI agents, enable automations, and set up cybersecurity. Alphabet has also become its own case study, with Gemini boosting conversions for its sales team and addressing 75% of support queries autonomously.

Waymo is gaining traction Waymo didn't get much attention in the Q2 press release, and executives just hinted at scaling Waymo in the Q2 earnings call. However, the self-driving vehicle company surpassed 500,000 fully autonomous rides per week in the first quarter.

Alphabet is still burning through cash to support this venture, but it has plenty of profits to make it work. This is similar to how Google endured many years of net losses for its cloud segment, and it became a critical part of the business.

Waymo established itself as the leader in the autonomous vehicle race. Grand View Research anticipates a 20.2% compound annual growth rate (CAGR) for this industry through 2033, suggesting Waymo has a lot of runway. Other companies are scrambling to capitalize on the opportunity, but being first can make it harder for competitors to penetrate the industry in a meaningful way.

As Waymo gets the green light to operate in more cities, demand should continue to build. Consumer benefits for this technology are vast. It's expensive to operate a business like Waymo, but that ironically gives Alphabet a massive advantage. Not only is it ahead of existing competitors, but the high barrier to entry keeps most potential competitors out of the industry.

Although there wasn't much news about Waymo in Q2, the self-driving company could become a significant part of the business within a few years.

Item 1 of 2 A woman injects herself with Zepbound, a GLP-1 weight-loss drug, at her home in Memphis, Tennessee, U.S., July 30, 2026. REUTERS/Karen Pulfer Focht

[1/2]A woman injects herself with Zepbound, a GLP-1 weight-loss drug, at her home in Memphis, Tennessee, U.S., July 30, 2026. REUTERS/Karen Pulfer Focht Purchase Licensing Rights, opens new tab

CompaniesAug 6 (Reuters) - Amazon's (AMZN.O), opens new tab pharmacy unit said on Thursday it would offer weight-loss drugs to eligible Medicare beneficiaries ​for $50 a month through a new federal program created to ‌expand access to the highly sought-after treatments.

The company said it would automate eligibility checks, prior authorization and billing, while offering home delivery and in-store pickup, to ​help patients access the drugs faster and reduce the administrative ​burden.

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The U.S. government's Medicare bridge program, launched last month, allows eligible ⁠beneficiaries to obtain drugs including Novo Nordisk's (NOVOb.CO), opens new tab Wegovy in injection ​or pill form, as well as Eli Lilly's (LLY.N), opens new tab four-dose Zepbound KwikPen injection ​and the Foundayo pill, through the end of 2027. The program does not cover single-dose Zepbound vials or pens.

Amazon Pharmacy said it would initiate the enrolment process ​on a customer's behalf once the patient adds insurance and Medicare ​details to their account and a clinician submits an electronic prescription.

Most Amazon Pharmacy ‌Bridge ⁠Program patients received a prior authorization decision in less than 24 hours, compared with the 72-hour timeframe allowed under the Medicare Bridge Program, Tanvi Patel, vice president and general manager of Amazon Pharmacy, told Reuters.

Many ​of the claims ​submitted have already ⁠resulted in completed orders, the company added.

Amazon Pharmacy launched electronic kiosks in its One Medical primary care locations ​last year to improve access and cut shipping costs.

One ​Medical, ⁠a national primary care provider Amazon acquired in 2023, allows patients to access primary and urgent care for an annual subscription fee of $199.

Same-day delivery ⁠is ​available in more than 3,100 U.S. cities ​and towns and is expected to expand to nearly 4,500 locations by the end of ​2026, Amazon said.

Reporting by Sahil Pandey in Bengaluru; Editing by Jonathan Ananda

Our Standards: The Thomson Reuters Trust Principles., opens new tab

At $518.58, Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) looks compelling, and its punishing beta of 2.49 works in shareholders’ favor at this stage of the AI capex cycle. The stock has gained 142.15% year to date, and Q2 earnings validated the reason why.

AMD sells the two chips hyperscalers cannot get enough of: Instinct GPUs for AI training and inference, and EPYC server CPUs that run the cluster headnodes around NVIDIA (NASDAQ:NVDA) and its own accelerators. Data Center revenue hit $6.72 billion in Q2, up 107% year over year, and now represents 58% of total company revenue. That is the mix change bulls have waited three years for.

Why The Setup Favors The Bulls The bull case is straightforward capex math. Hyperscaler AI spending is accelerating past $300 billion, cloud giants are actively diversifying away from sole-source NVIDIA reliance, and AMD is playing from a low single-digit share base. Even minor budget reallocations translate into outsized top-line growth. Q3 guidance calls for roughly $13 billion in revenue, about 41% YoY growth, with non-GAAP gross margin near 56%.

Operating leverage is showing up in the numbers. Q2 operating income grew 1,585% YoY to $1.99 billion, and non-GAAP operating margin expanded to 27% from 12%. Anchor partnerships back the runway: 2 gigawatts with Anthropic on MI450, 6 gigawatts with Meta on Instinct, and 6 gigawatts with OpenAI. As Lisa Su put it, “Data Center revenue more than doubled year-over-year.”

Why The Bear Case Still Has Teeth The valuation is uncomfortable. AMD trades at a trailing P/E near 162 and a forward P/E around 66x, with a price-to-sales of 21. Any deceleration in AI capex would compress that multiple violently, and beta cuts both ways.

Competitive risk is real. Elon Musk announced SpaceX will stop buying AMD chips in favor of NVIDIA, and AMD shares dropped 8% on the news. The Gaming segment fell 31% YoY, U.S. export controls on MI308 remain a China overhang, and insiders have logged 90 recent transactions with net selling.

Why Patience Is Tempting A Hold case rests on entry timing. Shares have jumped 14.07% in the past week and sit near $584.73 52-week highs. An AI model target of $475.08 implies 8.39% downside, and composite sentiment has fallen 14.84 points over 30 days. Waiting for a pullback into the $450s would improve risk/reward without abandoning the thesis.

The Numbers Behind The Call AMD trades at $518.58 against an analyst consensus target of $579.11, implying roughly 12% upside. Coverage skews decisively bullish: 5 Strong Buy, 36 Buy, 10 Hold, and 0 Sell ratings.

AMD is up 142.15% year to date, while the S&P 500 has returned 13.11%. Over one year, AMD is up 193.35% versus 22.21% for the S&P. That is beta doing exactly what a leveraged AI position should do.

The Verdict At This Price At $518.58, the setup favors accumulators.

The path to appreciation runs through the Q3 earnings report and the MI450 ramp. Guidance of $13 billion in Q3 revenue looks conservative given Data Center’s 16.3% sequential growth and the Anthropic, Meta, and OpenAI ramps ahead. Another beat and raise expands the forward multiple even if the trailing P/E stays optically rich.

Risk/reward at this entry is asymmetric because AMD’s operating leverage is only starting to show. Non-GAAP operating margin already jumped from 12% to 27%, and EPYC share gains carry higher incremental margins than Instinct. A beta of 2.49 means every incremental capex dollar routed to AMD hits harder than it does for NVIDIA.

What invalidates the thesis: a broad hyperscaler capex pause, another marquee customer defection following the SpaceX signal, or Q3 guidance that fails to accelerate. Watch Data Center revenue, MI450 shipment cadence, and hyperscaler capex commentary from Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Amazon (NASDAQ:AMZN).

When the compute bottleneck is this severe and the number two vendor is finally shipping competitive silicon at scale, the high-beta name carries asymmetric upside.

Contact [email protected] for any questions or corrections.

By PYMNTS  |  August 6, 2026

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Merchants using J.P. Morgan Payments’ Commerce Platform in the United States can now offer Klarna’s flexible payment options at checkout, with no integration required.

With this new capability, businesses across all retail categories can offer their customers Klarna’s pay in full, interest-free installments and longer-term financing, Klarna said in a Thursday (Aug. 6) press release emailed to PYMNTS.

“J.P. Morgan Payments’ reach combined with Klarna’s conversion power is a genuine competitive advantage, and it’s now available to every merchant on their platform,” Klarna Chief Commercial Officer David Sykes said in the release.

Michael Lozanoff, global head of merchant services at J.P. Morgan Payments, said in the release that the new integration provides a solution for merchants who know that flexible payments drive conversion but have found implementation of the payment option to be a barrier.

“By bringing Klarna directly onto our Commerce Platform, we’re helping remove that barrier for businesses of every size,” Lozanoff said.

This new integration builds upon a partnership that Klarna and J.P. Morgan Payments announced in February 2025.

The PYMNTS Intelligence report “Unpacking Merchant Strategies and Consumer Demand for Flexible Payment Plans” found that consumer preferences are shifting toward more flexible payment solutions.

About 20% of merchants have received complaints from consumers about the inability to pay how they want to pay, and merchants are working to meet consumers’ demand for a range of installment plans, according to the report.

Another PYMNTS Intelligence report, “BNPL’s Multi-Provider Moment: Why Shoppers No Longer Pick Just One,” found that among those who use buy now, pay later, 44% used Klarna.

Klarna reported in May that its U.S. business remained a key growth engine during the first quarter. The company’s gross merchandise value (GMV) in the U.S. rose 39% to $7.1 billion, and its revenue in the market climbed 67% to $399 million.

Klarna CEO and Co-Founder Sebastian Siemiatkowski said at the time in a press release: “Klarna addresses the entire consumer wallet: Pay Now for everyday spending and saving, Pay Later our charge card equivalent at 0% interest for mid-size ticket spending, and POS installments (Fair Financing) for big-ticket purchases.”

, /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL) (the "Company") today announced that it has commenced a registered public offering of senior unsecured notes (the "Notes").

The Company intends to use the net proceeds from the sale of the Notes to repay a portion of the outstanding borrowings under its floating rate term loan facilities and any remaining net proceeds to repay or refinance other existing indebtedness.

BNP Paribas Securities Corp., BofA Securities, Inc. and Citigroup Global Markets Inc. are acting as lead book-running managers for the offering.

The Notes offering is being made pursuant to an automatic shelf registration statement (including a prospectus) that was filed by the Company with the Securities and Exchange Commission (the "SEC") on February 29, 2024, and became effective upon filing. Before you invest, you should read the prospectus in the shelf registration statement and the documents incorporated by reference therein and the prospectus supplement that the Company has filed with the SEC for more complete information about the Company and the offering.

Copies of the prospectus and related prospectus supplement relating to the offering may be obtained from BNP Paribas Securities Corp. by telephone at 1-800-854-5674, BofA Securities, Inc., 201 North Tryon Street, NC1-022-02-25, Charlotte, NC 28255-0001, Attn: Prospectus Department, at [email protected] or by telephone at 1-800-294-1322 or Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-800-831-9146 or email: [email protected]. A copy of the prospectus and the related prospectus supplement relating to the offering may also be obtained free of charge by visiting EDGAR on the SEC's website at www.sec.gov. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Special Note Regarding Forward-Looking Statements

Certain statements in this press release relating to, among other things, the offering and sale of the Notes constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, to: statements regarding terms of the offering of the Notes and the intended use of proceeds. Words such as "anticipate," "believe," "committed," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "encouraged," "project," "shaping up," "position," "allows," "seek," "should," "will," "would," "considering," and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management's current expectations, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause the Company's actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of the economic and geopolitical environment on key aspects of the Company's business, such as the demand for cruises, passenger spending, and operating costs; changes in operating costs; the unavailability or cost of air service; incidents or adverse publicity concerning the Company's ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, climate events and/or natural disasters on the Company's business; risks related to the Company's sustainability activities; the impact of issues at shipyards, including ship delivery delays or ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity; inability to manage the Company's cost and capital allocation strategies; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market the Company's cruises; reliance on third-party service providers; potential unavailability of insurance coverage; disease outbreaks and increased concern about the risk of illness on the Company's ships or when travelling to or from the Company's ships, which could cause a decrease in demand, guest cancellations, and ship redeployments; the risks and costs related to cyber security attacks, data breaches, protecting the Company's systems and maintaining data integrity and security; uncertainties of a foreign legal system as the Company is not incorporated in the United States; the Company's ability to obtain sufficient financing or capital to fund its capital expenditures, operations, debt repayments and other financing needs; the Company's expectation and ability to pay a cash dividend on its common stock in the future; changes to the Company's dividend policy; growing anti-tourism sentiments and environmental concerns; changes in U.S. or other countries' foreign travel policy; impact of new or changing legislation and regulations (including environmental regulations) or governmental orders on the Company's business; fluctuations in foreign currency exchange rates, fuel prices and interest rates; further impairments of the Company's goodwill, long-lived assets, equity investments and notes receivable; an inability to source crew or provisions and supplies from certain places; the Company's ability to recruit, develop and retain high quality personnel; and pending or threatened litigation, investigations and enforcement actions.

Forward-looking statements should not be relied upon as predictions of actual results. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the Company on the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Royal Caribbean Group

Royal Caribbean Group is a leading global vacation company spanning cruise, exclusive destinations, and land-based vacation experiences. The company operates 71 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands - Royal Caribbean, Celebrity Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises, which operates the Mein Schiff and Hapag-Lloyd brands.

SOURCE Royal Caribbean Group

The company reported adjusted earnings of 42 cents per share, topping the analyst consensus estimate of 40 cents. Revenue increased 34.3% year over year to $3.58 billion, exceeding the consensus estimate of $3.45 billion.

Shopify expects third-quarter 2026 revenue to grow in the low-30% range year over year. The guidance implies revenue of approximately $3.73 billion to $3.78 billion, above the analyst consensus estimate of $3.59 billion.

“This was a monster quarter: more than 30% growth in GMV AND revenue AND gross profit AND free cash flow,” said Harley Finkelstein, President of Shopify. “We power every kind of business, and with AI, we’re expanding what’s possible for all of them. No one else comes close.”

Shopify shares fell 0.8% to $143.05 in pre-market trading.

These analysts made changes to their price targets on Shopify following earnings announcement.

Goldman Sachs analyst Gabriela Borges maintained the stock with a Buy and raised the price target from $170 to $194. Cantor Fitzgerald analyst Deepak Mathivanan maintained the stock with a Neutral and raised the price target from $127 to $145. Considering buying SHOP stock? Here’s what analysts think:

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, /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, Charter Communications Operating, LLC ("CCO") and Charter Communications Operating Capital Corp. ("CCO Capital," and together with CCO, the "Issuers"), intend to offer senior secured fixed rate notes (the "Notes").

The Issuers intend to use the net proceeds from this offering to pay the cash consideration of the previously announced acquisition of Cox Communications, Inc. (the "Cox Transactions") and for general corporate purposes, including to repay certain indebtedness and to pay related fees and expenses. This offering is not conditioned on the closing of the Cox Transactions and the closing of the Cox Transactions is not conditioned on the consummation of this offering.

The offering and sale of the Notes will be made pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC"). The offering is subject to, among other things, market conditions.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC will act as Joint Book-Running Managers for the senior secured notes offering. The offering will be made only by means of a prospectus supplement dated August 6, 2026 and the accompanying base prospectus, copies of which, when available, may be obtained on the SEC's website at www.sec.gov or by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: (800) 831-9146, E-mail: [email protected]; or by contacting Morgan Stanley & Co. LLC, c/o 180 Varick Street, New York, NY 10014, Attention: Prospectus Department, Telephone: (866) 718-1649, Email: [email protected]; or by contacting Wells Fargo Securities, LLC, c/o 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attention: WFS Customer Service, Email: [email protected].

This news release is neither an offer to sell nor a solicitation of an offer to buy the Notes and shall not constitute an offer, solicitation or sale, nor is it an offer to purchase, or the solicitation of an offer to sell the Notes in any jurisdiction in which such offer, solicitation, or sale is unlawful.

About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company with services available to nearly 59 million homes and small to large businesses across 41 states through its Spectrum brand. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the Company offers Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the potential offering. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as "believe," "future," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on" and "potential," among others.

All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.

SOURCE Charter Communications, Inc.

, /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) ("Federal Realty") announced today that its operating partnership, Federal Realty OP LP (the "Partnership"), launched an offering (the "Offering"), subject to market conditions and other factors, of $400 million aggregate principal amount of exchangeable senior notes due 2031 (the "notes") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The Partnership also intends to grant the initial purchasers of the notes an option to purchase, during a 13-day period beginning on, and including, the first date on which the notes are issued, up to an additional $60.0 million aggregate principal amount of notes.

The notes will be the Partnership's senior unsecured obligations and will accrue interest payable semi-annually in arrears. Subject to certain conditions, the notes will be exchangeable for cash up to the principal amount of the notes exchanged and, in respect of the remainder of the exchange value, if any, in excess thereof, cash or common shares of beneficial interest, par value $.01 per share, of Federal Realty ("common shares"), or a combination thereof, at the election of the Partnership. The interest rate, exchange rate and other terms of the notes will be determined at the time of pricing of the Offering.

The Partnership intends to use the net proceeds from the Offering to pay the cost of the capped call transactions described below, for the repayment of indebtedness and for general corporate purposes. Pending such use, the net proceeds may be invested in short-term, income-producing investments or the Partnership may use the net proceeds to temporarily repay current and/or future amounts outstanding under its revolving credit facility. If the initial purchasers of the notes exercise their option to purchase additional notes, the Partnership expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional capped call transactions with the option counterparties and the remaining net proceeds for the purposes described above.

In connection with the pricing of the notes, Federal Realty and the Partnership expect to enter into privately negotiated capped call transactions relating to the notes with one or more of the initial purchasers of the notes or their respective affiliates and/or other financial institutions (the "option counterparties"). The capped call transactions will cover, subject to customary adjustments, the number of Federal Realty's common shares that will initially underlie the notes.

The capped call transactions are expected generally to reduce the potential dilution to Federal Realty's common shares upon exchange of any notes and/or offset any cash payments the Partnership is required to make in excess of the principal amount of exchanged notes, as the case may be, with such reduction and/or offset subject to a cap.

In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates may enter into various derivative transactions with respect to Federal Realty's common shares and/or purchase Federal Realty's common shares or other securities of Federal Realty in secondary market transactions concurrently with or shortly after the pricing of the notes, including with or from, as the case may be, certain investors in the notes. This activity could increase (or reduce the size of any decrease in) the market price of Federal Realty's common shares or the notes at that time.

In addition, the option counterparties or their respective affiliates may modify or unwind their hedge positions by entering into or unwinding various derivatives with respect to Federal Realty's common shares and/or purchasing or selling Federal Realty's common shares or other securities of Federal Realty or the Partnership in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so following any fundamental change repurchase, redemption or early exchange of the notes and during the 40 trading day period beginning on the 41st scheduled trading day prior to the maturity date of the notes, or, to the extent the Partnership exercises the relevant election under the capped call transactions, following any other repurchase of the notes). This activity could also cause, reduce the extent of or avoid an increase or a decrease in the market price of Federal Realty's common shares or the notes, which could affect a noteholder's ability to exchange the notes, and, to the extent the activity occurs following exchange or during any observation period related to an exchange of notes, it could affect the number of common shares, if any, and value of the consideration that noteholders will receive upon exchange of the notes.

Neither the notes nor the common shares issuable upon exchange of the notes have been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. Accordingly, the notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act).

This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or sale of, the notes in any jurisdiction in which the offer, solicitation or sale of the notes would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of terms such as "propose," "will," "expect," "shall," and similar terms or the negative of such terms, and include, without limitation, statements regarding the expected timing, size, and completion of the proposed Offering, the grant to the initial purchasers of the option to purchase additional notes, the expected use of the net proceeds of the Offering, and other information that is not historical information. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include risks and uncertainties related to completion of the Offering on the anticipated terms or at all, market conditions, and the satisfaction of customary closing conditions related to the Offering. More information about the risks and uncertainties faced by Federal Realty and the Partnership is contained in the section captioned "Risk Factors" in Federal Realty's and the Partnership's Securities and Exchange Commission ("SEC") filings, including their Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as subsequent SEC filings. The forward-looking statements contained in this release are as of the date of this release, and, except as required by law, neither Federal Realty nor the Partnership undertakes any obligation to update any such statements, whether as a result of new information, future events or otherwise.

About Federal Realty

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose, and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. Federal Realty's 103 properties include approximately 3,700 tenants in 28.8 million commercial square feet, and approximately 2,700 residential units.

Federal Realty has increased its quarterly dividends per common share for 59 consecutive years on an annualized basis, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.

Investor Inquiries:
Jill Sawyer
Senior Vice President, Investor Relations
301.998.8265
[email protected]

Media Inquiries:
Brenda Pomar
Senior Director, Corporate Communications
301.998.8316
[email protected]

SOURCE Federal Realty Investment Trust

eBay Inc (NASDAQ:EBAY) on Wednesday reported upbeat second-quarter financial results.

eBay reported second-quarter revenue of $3.1 3 billion, up 15% year-over-year. The revenue total beat a Street consensus estimate of $3.02 billion, according to data from Benzinga Pro. The company reported second-quarter adjusted earnings per share of $1.60, beating a Street estimate of $1.51.

“eBay’s second quarter delivered meaningful, broad-based momentum driven by continued innovation and focused execution against our strategic roadmap,” eBay CEO Jamie Iannone said.

The company is guiding for third-quarter earnings per share in a range of $1.36 to $1.42 versus a Street estimate of $1.42. Guidance for third-quarter sales is $3.07 billion to $3.12 billion, versus a Street estimate of $2.97 billion. The sales guidance represents year-over-year growth of 8% to 10%, lower than the 15% in the second quarter.

eBay shares rose 1.4% to $112.75 in pre-market trading.

These analysts made changes to their price targets on eBay following earnings announcement.

Needham analyst Bernie McTernan maintained the stock with a Buy and raised the price target from $122 to $135. Cantor Fitzgerald analyst Deepak Mathivanan maintained the stock with a Neutral and lowered the price target from $110 to $106. Considering buying EBAY stock? Here’s what analysts think:

Photo via Shutterstock

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Peloton delivered its first full year of net profit and operating income in fiscal 2026, but said it expects sales to fall in the coming fiscal year as it begins to lap price increases on its hardware and subscription plans. 

Peloton shares tumbled about 13% in premarket trading as the outlook disappointed investors. Even so, Peloton CEO Peter Stern highlighted the major strides the company has made in becoming profitable.

"This was the year where Peloton sort of grew up," Stern told CNBC in an interview, calling fiscal 2026 a "landmark" year for the company financially. "That solid foundation positions us for what we need to do to get to long-term growth to deliver on our strategy of becoming a connected wellness company and puts us in really our strongest position to date." 

In the year ended June 30, Peloton posted a net income of $63.2 million, up from a loss of $118.9 million in the year-ago period, helped in part by the brand's decision to raise prices last fall.

Looking ahead to fiscal 2027, the company expects another year of positive free cash flow. It also anticipates gross margin and adjusted earnings before interest, tax, depreciation and amortization will grow compared to the prior year.

Aside from its fiscal year, Peloton issued mixed results during its fiscal fourth quarter. 

Here's how the company performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

Earnings per share: 13 cents vs. 13 cents expectedRevenue: $608 million vs. $598 million expectedPeloton's reported net income for the three-month period that ended June 30 was $61.6 million, or 13 cents per share, compared with $21.6 million, or five cents per share, a year earlier.   

Sales rose to $607.7 million, up slightly from $606.9 million a year earlier. 

Though it raised prices last fall, Peloton's annual sales still fell in fiscal 2026 compared to the year-ago period. In the current fiscal year 2027, Peloton said it expects sales to fall nearly 4% to between $2.3 billion and $2.4 billion, worse than the $2.42 billion analysts had been looking for, according to LSEG. 

It shows that while Peloton has made enormous strides in becoming a stronger, more profitable business with more say over its destiny, it's still struggling to sell its pricey hardware and keep subscribers engaged and paying. 

"We are gradually improving the trajectory of our gross adds and our connected fitness sales while we're keeping churn flat," said Stern. "We're not at the stage yet where we turn the net of all those things positive, but we're getting better and better so that's basically the story of [fiscal year] '27. We're a work in progress on that one but the trajectory is getting better in '27 than it's been in a long time." 

Peloton recently hired Sarah Robb O'Hagan as its new chief content and member development officer, replacing company veteran Jen Cotter, as Peloton looks to stabilize churn, or subscribers dropping off memberships. In the role, Robb O'Hagan will focus on accelerating innovation and driving engagement and loyalty, said Stern. 

"We've kicked off a major project under Sarah focusing on member development. This looks at everything from onboarding through to the experience of live classes," said Stern.

"The other thing that Sarah's done is at the same time that we're adding new instructors, she has resigned contracts with a significant portion of our existing instructors. So we're continuing to deliver on what our members love about Peloton while also sort of challenging them to broaden their experience," he added.

Peloton is pursuing a number of new revenue streams under Stern. It recently announced a partnership with Spotify and is working to launch its first ever commercial Bike and Tread this fall, which will allow Peloton to expand into commercial gyms. Stern couldn't yet say which gyms the company might be partnering with as it just finalized pricing on the machines, but said there's been "plenty of interest." 

"We're having lots of conversations, but we're not actually making sales yet," said Stern. 

Newly pending sales fell sharply from June as mortgage rates hit their highest point in a year, signaling that July's sales bump may not last

Home sales rose 7% year over year in July, the strongest annual gain of the year, according to Zillow's July Market Report. This largely represents transactions in which an offer was accepted in June. Newly pending listings, a leading indicator of future closings, grew just 0.3% from a year ago and fell 7.7% from June. Inventory sits 1.5% above year-ago levels, helped by 3.1% annual growth of new listings, extending the 32-month streak of supply gains. , /PRNewswire/ -- Home sales surged 7% in July, the strongest annual gain seen so far this year, according to the Zillow® July Market Report. But a closer look takes some air out of that headline figure. Newly pending listings are up just 0.3% year over year, suggesting the pipeline of future sales is running dry.

July's headline sales figure reflects contracts signed weeks earlier, when mortgage rates were hovering in the 6.5% range. A fresh oil price shock in July sent mortgage rates higher, likely prompting many home shoppers to pause their search.

The affordability edge that has been a silver lining to an otherwise disappointing home shopping season may disappear in the coming months. U.S. home values are up 1.1% from a year ago, according to the Zillow Home Value Index. A monthly mortgage payment on the typical U.S. home in July, assuming a 20% down payment, was 0.9% lower than the year prior. Unless they reverse course, mortgage rates will be higher than last year in August, likely enough to push the typical mortgage payment above year-ago levels.

"July was a strong month for existing home sales, but unfortunately it may represent the peak of what we can expect for the rest of the year," said Mischa Fisher, chief economist at Zillow. "Closed sales in July mostly reflect offers accepted in June, when underlying pent-up demand for housing, combined with an improving rate environment, drove strong activity. Unfortunately, the weak growth in newly pending sales in July and the worsening rate environment portend a weaker half of the year for sales growth, with flat to declining transaction volumes for the remainder of the year in some regions." 

Home Values & Mortgage Payments

The typical U.S. home value is $371,757. The Zillow Home Value Index (ZHVI) rose 0.4% month over month in July. Home values are 1.1% higher than a year earlier. The monthly mortgage payment on a typical U.S. home is $1,888, assuming a 20% down payment and excluding taxes and insurance. That is 0.9% lower than last year. Inventory

There were 1.41 million homes for sale nationwide in July. Active inventory was 1.5% higher than a year earlier. Inventory rose 0.9% from June. New for-sale listings totaled 387,203 in July, up 3.1% from a year earlier and down 4.2% from June. Sales

382,898 homes were sold in July, according to the preliminary Zillow sales count nowcast. That is 7% higher than a year earlier but down 2.7% from June. These figures will be revised mid-month. Newly pending listings, which measures listings that changed from for-sale to pending status rather than closed sales, shows 0.3% growth from a year earlier and a 7.7% decrease from June. Competition

Homes took a median of 25 days to go pending in July. That was five days longer than a year earlier and one day longer than June. The share of listings with a price cut in July was 27.1%. That was down from 27.4% a year earlier and up from 25.7% in June. 30.8% of homes sold above list price in June, the most recent data available. That's compared to 30.9% a year earlier and 30.2% in May. Rents

The typical rent nationwide is $1,962, according to the Zillow Observed Rent Index. That's 2.3% higher than a year earlier and up 0.3% from June. 39.8% of rental listings on Zillow offered a concession in July. That's up from 36% a year earlier and up from 39.7% in June. 39.8% of rental listings on Zillow offered a concession in July. That's compared to 36% a year earlier and 39.7% in June. Local data can be found on Zillow's market explorer. The Zillow August Market Report is expected to be released September 8.

Zillow July Market Report

Metro Area*

Typical
Home
Value
(ZHVI)

Home
Value
Change:
MoM

Home
Value
Change:
YoY

Inventory
Change:
YoY

Sales
Count
Nowcast
Change:
YoY

Typical
Rent
(ZORI)

Rent
Change:
MoM

Rent
Change:
YoY

United States

$371,757

0.4 %

1.1 %

1.5 %

7 %

$1,962

0.3 %

2.3 %

New York, NY

$739,990

0.8 %

4.6 %

1.9 %

-0.8 %

$3,627

0.8 %

4.5 %

Los Angeles, CA

$966,820

0.1 %

0.9 %

-2.8 %

2.1 %

$2,944

0.1 %

1.5 %

Chicago, IL

$361,494

0.9 %

4.8 %

1 %

7.2 %

$2,253

0.4 %

5.1 %

Dallas, TX

$364,682

0.1 %

-2.2 %

-4.7 %

5.1 %

$1,667

0 %

0.1 %

Houston, TX

$307,199

0.1 %

-1.9 %

3 %

6.5 %

$1,654

0.1 %

0 %

Washington, DC

$581,129

0.1 %

0.1 %

10.8 %

4.5 %

$2,456

0.3 %

0.4 %

Philadelphia, PA

$393,122

0.5 %

2.4 %

8.6 %

2.3 %

$1,925

0.4 %

3.4 %

Miami, FL

$478,760

0.4 %

-0.2 %

-14.9 %

15.8 %

$2,677

0.2 %

1.4 %

Atlanta, GA

$381,578

0.1 %

-1.5 %

-0.5 %

2.8 %

$1,855

0.5 %

2.1 %

Boston, MA

$743,469

0.4 %

2 %

12.4 %

13 %

$3,165

-0.1 %

2.6 %

Phoenix, AZ

$445,622

0 %

-1.1 %

-1.1 %

5.9 %

$1,727

0.2 %

0.3 %

San Francisco, CA

$1,143,620

0.1 %

2.1 %

-15.8 %

7.9 %

$3,372

1.8 %

9.7 %

Riverside, CA

$586,925

0.2 %

-0.1 %

-7.2 %

1.3 %

$2,547

0.1 %

2.5 %

Detroit, MI

$270,291

0.5 %

1.8 %

11.7 %

-2.7 %

$1,531

0.4 %

3.6 %

Seattle, WA

$741,028

-0.3 %

-1.5 %

17.2 %

-4.4 %

$2,282

0.5 %

1.4 %

Minneapolis, MN

$394,679

0.5 %

1.6 %

19 %

14 %

$1,725

0.4 %

3.5 %

San Diego, CA

$936,560

0 %

0.6 %

-7.7 %

9.6 %

$3,008

0.3 %

1.8 %

Tampa, FL

$361,516

0.3 %

-1.2 %

-8.9 %

10.7 %

$2,013

0.1 %

-0.5 %

Denver, CO

$567,979

-0.1 %

-1.7 %

-3.9 %

7.8 %

$1,930

0.3 %

-0.9 %

Baltimore, MD

$404,816

0.2 %

0.5 %

12.2 %

13 %

$1,946

0.6 %

2.5 %

St. Louis, MO

$278,129

0.5 %

3.3 %

9.7 %

-0.6 %

$1,445

0.5 %

4.3 %

Orlando, FL

$386,386

0.1 %

-1.7 %

-4.8 %

11 %

$1,959

-0.1 %

0.6 %

Charlotte, NC

$387,653

0 %

-0.6 %

11.6 %

7.2 %

$1,756

0.2 %

0.6 %

San Antonio, TX

$278,613

0 %

-1.9 %

4 %

8.2 %

$1,425

0.2 %

-1.8 %

Portland, OR

$550,185

0.2 %

-0.3 %

2.1 %

5.5 %

$1,810

0.2 %

0.3 %

Sacramento, CA

$582,570

0.2 %

-0.3 %

-7.1 %

9 %

$2,296

-0.1 %

1.7 %

Pittsburgh, PA

$231,278

0.3 %

-0.2 %

15.7 %

2 %

$1,499

0.3 %

3.4 %

Cincinnati, OH

$311,118

0.3 %

2.2 %

11.4 %

9.6 %

$1,552

0.3 %

2.7 %

Austin, TX

$424,478

0.1 %

-4.5 %

-4.6 %

19.7 %

$1,647

0.3 %

-0.9 %

Las Vegas, NV

$428,201

0 %

-2.8 %

0.5 %

6.3 %

$1,747

-0.1 %

0.2 %

Kansas City, MO

$331,205

0.5 %

3.7 %

2.5 %

11.9 %

$1,546

0.6 %

3.7 %

Columbus, OH

$332,969

0.3 %

1.2 %

12.3 %

18.2 %

$1,519

0.5 %

1.9 %

Indianapolis, IN

$295,966

0.3 %

0.9 %

12.7 %

8.4 %

$1,571

0.6 %

2.7 %

Cleveland, OH

$254,758

0.7 %

3.5 %

14.3 %

7.3 %

$1,476

0.6 %

4.3 %

San Jose, CA

$1,569,703

-0.6 %

-0.4 %

0.4 %

3.2 %

$3,782

1.4 %

7 %

Nashville, TN

$455,148

0.2 %

-0.5 %

8.7 %

8.5 %

$1,820

0.4 %

0.6 %

Virginia Beach, VA

$376,678

0.5 %

2.8 %

4.8 %

7.8 %

$1,877

0.8 %

5.9 %

Providence, RI

$531,026

0.7 %

3.6 %

5.3 %

-1.5 %

$2,180

0.2 %

3.6 %

Jacksonville, FL

$352,756

0.2 %

-0.4 %

-14.3 %

5.2 %

$1,711

0.3 %

1.4 %

Milwaukee, WI

$393,714

0.8 %

5.3 %

9.7 %

15.7 %

$1,545

0.5 %

4.7 %

Oklahoma City, OK

$246,398

0.2 %

0.9 %

5.9 %

4.1 %

$1,390

0.2 %

2.4 %

Raleigh, NC

$436,918

0.1 %

-1.6 %

12.1 %

1.4 %

$1,683

0.4 %

0.5 %

Memphis, TN

$245,565

0 %

0 %

11.5 %

5.4 %

$1,422

0.3 %

1.2 %

Richmond, VA

$398,387

0.4 %

2.6 %

4.5 %

8.2 %

$1,751

0.2 %

2.7 %

Louisville, KY

$282,162

0.2 %

1.4 %

17.4 %

10.8 %

$1,357

0 %

1.8 %

New Orleans, LA

$262,731

0.2 %

2.2 %

-2.1 %

8.1 %

$1,604

0.2 %

1.2 %

Salt Lake City, UT

$567,006

0.2 %

1.1 %

0.9 %

19.9 %

$1,647

0.1 %

0.5 %

Hartford, CT

$405,762

0.8 %

5 %

5.5 %

1.2 %

$2,020

0.3 %

2.8 %

Buffalo, NY

$292,737

0.9 %

3.9 %

16.8 %

7.1 %

$1,446

0.6 %

3.3 %

Birmingham, AL

$263,910

0.4 %

2.4 %

6.4 %

8.8 %

$1,456

0.3 %

1.4 %

*Table ordered by market size 

Forward-looking statements
This press release includes forward-looking statements about future housing market conditions, mortgage rates, rental trends and other economic factors. These statements are based on current expectations and assumptions, which are subject to change. Actual outcomes may differ materially due to changes in economic and market conditions. Forward-looking statements speak only as of the date of this release, and Zillow Group undertakes no obligation to update them.

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.

(ZFIN)

SOURCE Zillow

General view of the Suncor Energy refinery in Sarnia, Ontario, Canada March 20, 2021. REUTERS/Carlos Osorio Purchase Licensing Rights, opens new tab

CompaniesAug 6 (Reuters) - Canada's Suncor Energy (SU.TO), opens new tab on Thursday named insider Peter Zebedee ​its next CEO, and said ‌Chief Financial Officer Troy Little left the company.

Zebedee, currently executive vice ​president of Suncor's upstream ​business, will succeed Rich Kruger ⁠as president and chief executive ​in April 2027 — when Kruger ​transitions to executive vice chair, the company said.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

As part of the succession ​plan, Zebedee will become president ​and CFO on September 14, overseeing all ‌non-operating ⁠functions while working alongside Kruger to ensure leadership transition.

Suncor did not disclose why Little ​left.

Zebedee joined ​Suncor ⁠in 2022 after serving as CEO of LNG ​Canada. He previously held ​senior ⁠roles at Shell (SHEL.L), opens new tab, Petro-Canada and Syncrude and has more than ⁠three ​decades of experience ​in the energy industry.

Reporting by Arunima Kumar ​in Bengaluru; Editing by Joyjeet Das

Our Standards: The Thomson Reuters Trust Principles., opens new tab

, /PRNewswire/ -- Warner Bros. Discovery, Inc. (the "Company") (Nasdaq: WBD) today reported financial results for the quarter ended June 30, 2026. Please visit the "Investor Relations" section of the Company's website at https://ir.wbd.com/ to view the earnings materials.

The Company will conduct a conference call today at 8:00 a.m. ET to discuss the results. A link to the live webcast of the conference call will be available in the "Investor Relations" section of the Company's website at https://ir.wbd.com/.

A replay of the audio webcast will be available in the "Investor Relations" section of the Company's website for twelve months.

About Warner Bros. Discovery:
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming and gaming. Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, HBO Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit www.wbd.com.

SOURCE Warner Bros. Discovery, Inc.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Zoetis Inc. (NYSE:ZTS), the world's leading animal health company, today reported its financial results for the second quarter of 2026.

The company reported revenue of $2.5 billion for the second quarter of 2026, flat compared with the second quarter of 2025, decreasing 1% on an organic operational1 basis. Net income for the second quarter of 2026 was $691 million, or $1.65 per diluted share, decreasing 5% and growing 1%, respectively, on a reported basis.

Adjusted net income2 for the second quarter of 2026 was $781 million, or $1.87 per diluted share, decreasing 1% and increasing 5%, respectively, on a reported basis, decreasing 2% and increasing 4%, respectively, on an organic operational basis. Adjusted net income for the second quarter of 2026 excludes the net impact of $90 million for purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items.

"Second quarter results reflected a more pressured Companion Animal market, as lower clinic visits and pet owner price sensitivity reduced demand across parts of our portfolio and heightened competition in key categories," said Kristin Peck, Chief Executive Officer of Zoetis. "At the same time, these dynamics reinforce the enduring attractiveness of the markets Zoetis has helped define and advance. We are adapting our commercial strategy to the marketplace in front of us, deploying targeted investments, accelerating innovation, and pursuing business development to strengthen our position in areas aligned with the future of animal health. We also continue to benefit from the breadth of our diversified portfolio, including strength in Livestock and Diagnostics. As we advance our robust pipeline, including more than 12 potential blockbusters over the coming years, we are acting with urgency and remain confident in the long-term fundamentals of animal health and in Zoetis' ability to compete, lead, and create shareholder value."

SEGMENT HIGHLIGHTS
Zoetis organizes and manages its commercial operations across two segments: United States (U.S.) and International. Within these segments, the company delivers a diverse portfolio of products for companion animals and livestock, tailored to local trends and customer needs. In the second quarter of 2026:

Revenue in the U.S. segment totaled $1.3 billion, decreasing 7% on both a reported and an organic operational basis relative to the second quarter of 2025. Companion animal product sales decreased 11% due to continued softer end-market demand. The company's key dermatology franchise and Simparica Trio® faced persistent macro-driven price sensitivity and heightened competitive pressure. Also contributing to the decline was the impact of generic competition on the Cerenia® and Convenia® brands, as well as lower sales of Librela®. Sales of livestock products increased 23% on both a reported and organic operational basis in the quarter, supported by strength across cattle and poultry. Cattle performance was underpinned by favorable producer economics in beef cattle and supply timing. Poultry performance benefited from increased vaccine sales tied to disease outbreak activity. Revenue in the International segment was $1.2 billion, increasing 8% on a reported basis and 6% on an organic operational basis compared with the second quarter of 2025. Companion animal product sales grew 8% on a reported basis and 5% on an organic operational basis, led by the company's parasiticides portfolio, including Simparica Trio, along with contributions from Revolution® and Stronghold®. Also contributing to growth was companion animal diagnostics, as well as osteoarthritis (OA) pain with the launch of Lenivia® and Portela™, the company's long-acting monoclonal antibody pain products that provide dogs and cats with up to three months of pain relief. These gains were partially offset by lower sales of key dermatology products as well as challenging market conditions impacting the broader portfolio. Sales of livestock products grew 8% on a reported basis and 6% on an organic operational basis, driven by growth in cattle and poultry. INVESTMENTS IN GROWTH
Zoetis continued to advance innovation across its diversified portfolio, including a pipeline with more than 12 potential blockbuster3 candidates in areas such as chronic kidney disease, oncology, cardiology, anxiety and obesity. During the quarter, the company advanced major-market approvals, expanded access to industry-leading treatments in new geographies, enhanced diagnostics capabilities, and delivered solutions to support customers facing emerging and transboundary infectious disease threats. Together, these efforts reflect Zoetis' focus on translating science, global scale and customer insights into solutions that improve the health of companion animals and livestock around the world.

Delivering on Commitment to Innovation
Zoetis is executing on its commitment to deliver a significant approval in a major market every year for the next several years. In July, the company received marketing authorization from the European Commission for Poulvac® Procerta® HVT-ND. This approval reinforces Zoetis’ focus on ensuring a stable and reliable protein supply, helping protect poultry production against Newcastle and Marek’s disease.

Lenivia and Portela, long-acting monoclonal antibody therapies providing dogs and cats with up to three months of OA pain relief from a single injection, launched in Canada and the EU and were approved in Great Britain. Lenivia was also approved in Switzerland.

Supporting Prevention and Treatment of New World Screwworm
With New World screwworm now confirmed in the United States, Zoetis has been well prepared to support customers’ prevention and treatment strategies. Dectomax®-CA1, the first parasite control product to receive FDA conditional approval for the prevention and treatment of New World screwworm myiasis in beef cattle, together with Dectomax®, received emergency use authorization in the U.S. for prevention of infestations in swine, sheep, deer, horses, lactating and dry dairy cows, and dairy replacement heifers. This response underscores Zoetis’ long-standing support for a One Health approach and its ability to deliver targeted solutions when disease threats affect animals, customers, and the broader food supply.

Additional approvals from the quarter include:

Vanguard® crLyme received a label update in the U.S. for effectiveness against subclinical arthritis caused by Borrelia burgdorferi, representing a significant pipeline acceleration. Bonqat®, an oral medication to help alleviate acute anxiety and fear associated with transportation and veterinary visits in cats, was approved in China. Synovex® One Grower gained an expanded label approval in the U.S. to increase the rate of weight gain in growing beef steers and heifers in dry lots or on pasture with insufficient forage. Suvaxyn® PRRS Needle-Free Microdose, a vaccine that helps prevent porcine reproductive and respiratory syndrome, was approved in the EU. This approval includes a needle free intramuscular administration claim and a new multidose presentation. Fostera® Gold PVC MH Flex, a vaccine to help prevent infection from Mycoplasma hyopneumoniae and Porcine circovirus, was approved in Japan. Accelerating Diagnostics Capabilities
In July, Zoetis completed the acquisition of VitalRADS, a veterinary teleradiology services platform. This milestone advances Zoetis’ strategic pursuit of opportunities that unlock new sources of growth by expanding its Global Diagnostics offering with around-the-clock access to board-certified veterinary specialists through a cloud-based teleradiology platform. The acquisition will extend Zoetis’ capabilities beyond in-vitro testing into veterinary imaging interpretation and advance its vision of a more complete end-to-end Virtual Reference Lab.

Zoetis also expanded the capabilities of Vetscan Opticell™, making it the first and only point of care hematology analyzer to offer cellular hemoglobin mean – previously available only in reference laboratories. This expansion adds greater diagnostic depth in clinics and delivers value to veterinary teams through time, cost, and space savings.

Together, these investments strengthen Zoetis’ diagnostics capabilities and reinforce the company’s differentiated position in animal health with scale across both diagnostics and therapeutics.

Advancing Sustainability in Animal Health for a Better Future
In June, Zoetis published its 2025 Sustainability Report, marking the completion of its initial Driven to Care aspirations set in 2021 and introducing the strategy’s next phase, with an even sharper focus across Communities, Animals and the Planet. The report also highlighted that the Zoetis Foundation fulfilled its commitment to distribute $35 million in grants from 2021 to 2025, helping strengthen the animal health ecosystem by advancing opportunities for veterinary professionals and livestock farmers.

FINANCIAL GUIDANCE
Zoetis is providing updated guidance based on the current operating environment.

Revenue of $9.120 billion to $9.320 billion (organic operational growth of (3)% to (1)%) Reported net income of $2.330 billion to $2.380 billion Adjusted net income of $2.570 billion to $2.620 billion (organic operational growth of (9)% to (5)%) Reported diluted EPS of $5.55 to $5.65 Adjusted diluted EPS of $6.15 to $6.25 This guidance reflects foreign exchange rates as of July 21, 2026. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call.

WEBCAST & CONFERENCE CALL DETAILS
Zoetis will host a webcast and conference call today at 8:30 a.m. ET to review second quarter 2026 results, discuss financial guidance and respond to questions from financial analysts. The live webcast and corresponding slides can be accessed by visiting https://investor.zoetis.com/events-presentations. A replay of the webcast will be available following the event.

About Zoetis
Zoetis is the world’s leading animal health company, driven by a singular purpose: to nurture our world and humankind by advancing care for animals. With a legacy of nearly 75 years, Zoetis continues to pioneer ways to predict, prevent, detect, and treat animal illness, supporting veterinarians, livestock producers, and pet owners in over 100 countries. We integrate deep scientific expertise, data-driven R&D, advanced manufacturing, and commercial excellence to deliver meaningful innovation across medicines, vaccines, diagnostics, biopharmaceuticals, and digital solutions. Guided by our vision to be the most trusted and valued animal health company, Zoetis is committed to setting new standards for the future of animal care through innovation, customer obsession, and purpose-driven colleagues. To learn more, visit Zoetis.com.

1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures.
2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items.
3 A blockbuster has annual sales of at least $100 million.

DISCLOSURE NOTICES
Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance, future guidance, future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; expectations regarding competing products; expectations regarding financial impact of divestitures; disruptions in our global supply chain; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; foreign exchange rates, tax rates, tariffs, changes in tax regimes and laws and any changes thereto; possible impacts of the Fiscal Year Alignment; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned “Forward-Looking Statements and Factors That May Affect Future Results” and “Item 1A. Risk Factors,” in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.

Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share, operational results (which exclude the impact of foreign exchange) and organic operational results (which exclude the impact of foreign exchange and certain acquisitions and divestitures), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this press release should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release and are posted on our website at www.zoetis.com.

Internet Posting of Information: We routinely post information that may be important to investors on the 'Investor Relations' section of our website at www.zoetis.com, as well as on LinkedIn, Facebook, X (formerly Twitter) and YouTube. We encourage investors and potential investors to consult our website regularly and to follow us on social media for company news and information.

ZTS-COR
ZTS-IR
ZTS-FIN

ZOETIS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(millions of dollars, except per share data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

% Change

2026

2025

% Change

Revenue

$

2,468

$

2,474

—

$

4,730

$

4,672

1

Costs and expenses:

Cost of sales

673

664

1

1,314

1,282

2

Selling, general and administrative expenses

592

614

(4

)

1,180

1,188

(1

)

Research and development expenses

173

166

4

353

328

8

Amortization of intangible assets

31

33

(6

)

62

65

(5

)

Restructuring charges and certain acquisition and divestiture-related costs

77

30

*

99

30

*

Interest expense, net of capitalized interest

61

53

15

123

107

15

Other (income)/deductions–net

(5

)

2

*

(25

)

(13

)

92

Income before provision for taxes on income

866

912

(5

)

1,624

1,685

(4

)

Provision for taxes on income

175

186

(6

)

332

357

(7

)

Net income before allocation to noncontrolling interests

691

726

(5

)

1,292

1,328

(3

)

Less: Net income/(loss) attributable to noncontrolling interests

—

—

*

—

—

*

Net income attributable to Zoetis Inc.

$

691

$

726

(5

)

$

1,292

$

1,328

(3

)

Earnings per share attributable to Zoetis—basic

$

1.65

$

1.63

1

$

3.08

$

2.98

3

Earnings per share attributable to Zoetis—diluted

$

1.65

$

1.63

1

$

3.08

$

2.97

4

Weighted-average shares used to calculate earnings per share

Basic

417.6

445.1

419.9

446.3

Diluted

417.7

445.5

420.1

446.7

* Calculation not meaningful.

ZOETIS INC.

RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

CERTAIN LINE ITEMS

(UNAUDITED)

(millions of dollars, except per share data)

Three Months Ended June 30, 2026

GAAP Reported

Purchase Accounting Adjustments

Acquisition and Divestiture- Related Costs(1)

Certain Significant Items(2)

Non-GAAP Adjusted(a)

Cost of sales

$

673

$

(1

)

$

—

$

(3

)

$

669

Gross profit

1,795

1

—

3

1,799

Selling, general and administrative expenses

592

(3

)

—

(3

)

586

Amortization of intangible assets

31

(26

)

—

—

5

Restructuring charges and certain acquisition and divestiture-related costs

77

—

(2

)

(75

)

—

Income before provision for taxes on income

866

30

2

81

979

Provision for taxes on income

175

6

—

17

198

Net income attributable to Zoetis

691

24

2

64

781

Earnings per common share attributable to Zoetis–diluted

1.65

0.06

—

0.16

1.87

Three Months Ended June 30, 2025

GAAP Reported

Purchase Accounting Adjustments

Acquisition and Divestiture- Related Costs(1)

Certain Significant Items(2)

Non-GAAP Adjusted(a)

Cost of sales

$

664

$

(1

)

$

—

$

(2

)

$

661

Gross profit

1,810

1

—

2

1,813

Selling, general and administrative expenses

614

(2

)

—

(9

)

603

Research and development expenses

166

(1

)

—

—

165

Amortization of intangible assets

33

(29

)

—

—

4

Restructuring charges and certain acquisition and divestiture-related costs

30

—

(1

)

(29

)

—

Other (income)/deductions–net

2

—

—

(8

)

(6

)

Income before provision for taxes on income

912

33

1

48

994

Provision for taxes on income

186

8

—

9

203

Net income attributable to Zoetis

726

25

1

39

791

Earnings per common share attributable to Zoetis–diluted

1.63

0.06

—

0.09

1.78

(a) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.

See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2).

  ZOETIS INC.

RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

CERTAIN LINE ITEMS

(UNAUDITED)

(millions of dollars, except per share data)

Six Months Ended June 30, 2026

GAAP Reported

Purchase Accounting Adjustments

Acquisition and Divestiture- Related Costs(1)

Certain Significant Items(2)

Non-GAAP Adjusted(a)

Cost of sales

$

1,314

$

(2

)

$

—

$

(5

)

$

1,307

Gross profit

3,416

2

—

5

3,423

Selling, general and administrative expenses

1,180

(2

)

—

(7

)

1,171

Research and development expenses

353

(1

)

—

—

352

Amortization of intangible assets

62

(53

)

—

—

9

Restructuring charges and certain acquisition and divestiture-related costs

99

—

(4

)

(95

)

—

Other (income)/deductions–net

(25

)

—

—

(1

)

(26

)

Income before provision for taxes on income

1,624

58

4

108

1,794

Provision for taxes on income

332

13

1

21

367

Net income attributable to Zoetis

1,292

45

3

87

1,427

Earnings per common share attributable to Zoetis–diluted

3.08

0.11

—

0.21

3.40

Six Months Ended June 30, 2025

GAAP Reported

Purchase Accounting Adjustments

Acquisition and Divestiture- Related Costs(1)

Certain Significant Items(2)

Non-GAAP Adjusted(a)

Cost of sales

$

1,282

$

(2

)

$

—

$

(2

)

$

1,278

Gross profit

3,390

2

—

2

3,394

Selling, general and administrative expenses

1,188

(5

)

—

(15

)

1,168

Research and development expenses

328

(1

)

—

—

327

Amortization of intangible assets

65

(57

)

—

—

8

Restructuring charges and certain acquisition and divestiture-related costs

30

—

(1

)

(29

)

—

Other (income)/deductions–net

(13

)

—

—

(8

)

(21

)

Income before provision for taxes on income

1,685

65

1

54

1,805

Provision for taxes on income

357

15

—

9

381

Net income attributable to Zoetis

1,328

50

1

45

1,424

Earnings per common share attributable to Zoetis–diluted

2.97

0.12

—

0.10

3.19

(a) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.

See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2).

ZOETIS INC.

NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

CERTAIN LINE ITEMS

(UNAUDITED)

(millions of dollars)

(1) Acquisition and divestiture-related costs include the following:

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Acquisition-related costs(a)

$

2

$

1

$

4

$

1

Total acquisition and divestiture-related costs—pre-tax

2

1

4

1

Income taxes(b)

—

—

1

—

Total acquisition and divestiture-related costs—net of tax

$

2

$

1

$

3

$

1

  (a) Acquisition-related costs represent external, incremental costs that directly relate to transacting and integrating businesses, included in Restructuring charges and certain acquisition and divestiture-related costs.

(b) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate.

(2) Certain significant items include the following:

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Other restructuring charges and cost-reduction/productivity initiatives(a)

$

75

$

7

$

95

$

7

Business process transformation program(b)

6

11

11

18

Certain asset impairment charges(c)

—

27

—

27

Net loss on sale of business(d)

—

3

—

3

Other

—

—

2

(1

)

Total certain significant items—pre-tax

81

48

108

54

Income taxes(e)

17

9

21

9

Total certain significant items—net of tax

$

64

$

39

$

87

$

45

  (a) For the three and six months ended June 30, 2026, primarily driven by employee termination costs under a comprehensive cost and productivity program, with the six-month period also reflecting employee termination costs from additional organizational structure refinements.

For the three and six months ended June 30, 2025, primarily consisted of employee termination costs related to a transition from internal to external innovation and manufacturing of certain products and the closure of a related site, included in Restructuring charges and certain acquisition and divestiture-related costs.

(b) Represents costs related to our multi-year business process transformation program, which includes the implementation of a new enterprise resource planning (ERP) system, related digital technology solutions and other related costs, included in Selling, general and administrative expenses and Cost of sales. This comprehensive program is a major global and cross-functional company-wide effort that we believe will transform how we work across our business and contribute to all of our strategic priorities. Due to the nature, scope and magnitude of this investment, these costs are incremental transformational costs that are far in excess of the historical normal level of spending to support operations and are not expected to recur in the foreseeable future.

(c) Represents certain asset impairment charges related to a transition from internal to external innovation and manufacturing of certain products and the closure of a related site, included in Restructuring charges and certain acquisition and divestiture-related costs, as well as charges related to our aquaculture product portfolio included in Other (income)/deductions–net.

(d) Represents a net loss related to the sale of our medicated feed additive product portfolio, certain water soluble products and related assets sold in 2024, included in Other (income)/deductions–net.

(e) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate.

  ZOETIS INC.

ADJUSTED SELECTED COSTS, EXPENSES AND INCOME(a)

(UNAUDITED)

(millions of dollars)

  Three Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Operational(b)

Divestitures

Organic Operational(c)

Adjusted cost of sales

$

669

$

661

1

%

3

%

(2

)%

as a percent of revenue

27.1

%

26.7

%

NA

NA

NA

Adjusted SG&A expenses

586

603

(3

)%

1

%

(4

)%

Adjusted R&D expenses

173

165

5

%

1

%

4

%

Adjusted net income

781

791

(1

)%

1

%

(2

)%

—

%

(2

)%

Six Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Operational(b)

Divestitures

Organic Operational(c)

Adjusted cost of sales

$

1,307

$

1,278

2

%

6

%

(4

)%

as a percent of revenue

27.6

%

27.4

%

NA

NA

NA

Adjusted SG&A expenses

1,171

1,168

—

%

2

%

(2

)%

Adjusted R&D expenses

352

327

8

%

2

%

6

%

Adjusted net income

1,427

1,424

—

%

1

%

(1

)%

—

%

(1

)%

(a) Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported U.S. GAAP income statement line items excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items. The corresponding GAAP line items and reconciliations of reported to adjusted information are provided in Condensed Consolidated Statements of Income and Reconciliation of GAAP Reported to Non-GAAP Adjusted Information.

(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.

(c) Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures.

ZOETIS INC.

2026 GUIDANCE

  Selected Line Items

(millions of dollars, except per share amounts)

Full Year 2026

as of August 6, 2026

Full Year 2026

as of May 7, 2026

(Prior Guidance)

Revenue

$9,120 to $9,320

$9,680 to $9,960

Organic operational results(a)

(3)% to (1)%

2% to 5%

Adjusted cost of sales as a percentage of revenue(b)

Approximately 29.0%

Approximately 28.5%

Adjusted SG&A expenses(b)

$2,330 to $2,380

$2,350 to $2,400

Adjusted R&D expenses(b)

$720 to $730

$735 to $745

Adjusted interest expense and other (income)/deductions-net(b)

Approximately $215

Approximately $215

Effective tax rate on adjusted income(b)

Approximately 20.5%

Approximately 20.5%

Adjusted diluted EPS(b)

$6.15 to $6.25

$6.85 to $7.00

Adjusted net income(b)

$2,570 to $2,620

$2,870 to $2,950

Organic operational results(a)(c)

(9)% to (5)%

2% to 6%

Certain significant items and acquisition and divestiture-related costs(d)

Approximately $150

Approximately $100

Reported diluted EPS

$5.55 to $5.65

$6.35 to $6.50

The guidance reflects foreign exchange rates as of July 21, 2026.

Reconciliations of 2026 reported guidance to 2026 adjusted guidance follows:

  (millions of dollars, except per share amounts) Reported

Certain significant items and acquisition and divestiture-related costs(d)

Purchase accounting

Adjusted(b)

Cost of sales as a percentage of revenue

~ 29.2%

~ (0.2%)

~ 29.0%

SG&A expenses

$2,350 to $2,400

~ $(12)

~ $(8)

$2,330 to $2,380

R&D expenses

$722 to $732

~ $(2)

$720 to $730

Interest expense and other (income)/deductions-net

~ $215

~ $215

Effective tax rate

~ 20.6%

~ (0.1%)

~ 20.5%

Diluted EPS

$5.55 to $5.65

~ $0.38

~ $0.22

$6.15 to $6.25

Net income attributable to Zoetis

$2,330 to $2,380

~ $150

~ $90

$2,570 to $2,620

  (a) Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures.

(b) Adjusted net income and its components and adjusted diluted EPS are defined as reported U.S. GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. Adjusted cost of sales, adjusted SG&A expenses, adjusted R&D expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Despite the importance of these measures to management in goal setting and performance measurement, adjusted net income and its components and adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, adjusted net income and its components and adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Adjusted net income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.

(c) We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational results to the most directly comparable U.S. GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition and divestiture-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period.

(d) Primarily includes certain nonrecurring costs related to acquisitions, divestitures and other charges.

ZOETIS INC.

CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES

(UNAUDITED)

(millions of dollars)

Three Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Operational(b)

Divestitures

Organic Operational(c)

Revenue:

Companion Animal

$

1,708

$

1,790

(5

)%

1

%

(6

)%

—

%

(6

)%

Livestock

731

651

12

%

2

%

10

%

(1

)%

11

%

Contract Manufacturing & Human Health

29

33

(12

)%

1

%

(13

)%

—

%

(13

)%

Total Revenue

$

2,468

$

2,474

—

%

2

%

(2

)%

(1

)%

(1

)%

U.S.:

Companion Animal

$

1,044

$

1,176

(11

)%

—

%

(11

)%

—

%

(11

)%

Livestock

222

180

23

%

—

%

23

%

—

%

23

%

Total U.S. Revenue

$

1,266

$

1,356

(7

)%

—

%

(7

)%

—

%

(7

)%

International:

Companion Animal

$

664

$

614

8

%

3

%

5

%

—

%

5

%

Livestock

509

471

8

%

4

%

4

%

(2

)%

6

%

Total International Revenue

$

1,173

$

1,085

8

%

3

%

5

%

(1

)%

6

%

Companion Animal:

Dogs and Cats

$

1,634

$

1,719

(5

)%

1

%

(6

)%

Horses

74

71

4

%

1

%

3

%

Total Companion Animal Revenue

$

1,708

$

1,790

(5

)%

1

%

(6

)%

Livestock:

Cattle

$

390

$

323

21

%

3

%

18

%

Swine

117

118

(1

)%

2

%

(3

)%

Poultry

115

104

11

%

1

%

10

%

Fish

83

81

2

%

4

%

(2

)%

Sheep and other

26

25

4

%

8

%

(4

)%

Total Livestock Revenue

$

731

$

651

12

%

2

%

10

%

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange.

(c) Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures.

ZOETIS INC.

CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES

(UNAUDITED)

(millions of dollars)

Six Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Operational(b)

Divestitures

Organic Operational(c)

Revenue:

Companion Animal

$

3,227

$

3,331

(3

)%

2

%

(5

)%

—

%

(5

)%

Livestock

1,451

1,278

14

%

4

%

10

%

(1

)%

11

%

Contract Manufacturing & Human Health

52

63

(17

)%

1

%

(18

)%

—

%

(18

)%

Total Revenue

$

4,730

$

4,672

1

%

2

%

(1

)%

—

%

(1

)%

U.S.:

Companion Animal

$

1,909

$

2,149

(11

)%

—

%

(11

)%

—

%

(11

)%

Livestock

447

390

15

%

—

%

15

%

—

%

15

%

Total U.S. Revenue

$

2,356

$

2,539

(7

)%

—

%

(7

)%

—

%

(7

)%

International:

Companion Animal

$

1,318

$

1,182

12

%

6

%

6

%

—

%

6

%

Livestock

1,004

888

13

%

5

%

8

%

(2

)%

10

%

Total International Revenue

$

2,322

$

2,070

12

%

5

%

7

%

(1

)%

8

%

Companion Animal:

Dogs and Cats

$

3,077

$

3,196

(4

)%

2

%

(6

)%

Horses

150

135

11

%

3

%

8

%

Total Companion Animal Revenue

$

3,227

$

3,331

(3

)%

2

%

(5

)%

Livestock:

Cattle

$

782

$

664

18

%

4

%

14

%

Swine

240

223

8

%

4

%

4

%

Poultry

233

210

11

%

2

%

9

%

Fish

149

136

10

%

7

%

3

%

Sheep and other

47

45

4

%

7

%

(3

)%

Total Livestock Revenue

$

1,451

$

1,278

14

%

4

%

10

%

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange.

(c) Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures.

ZOETIS INC.

CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS

(UNAUDITED)

(millions of dollars)

  Three Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Divestitures

Organic Operational(a)

Total International

$

1,173

$

1,085

8

%

3

%

(1

)%

6

%

Australia

94

83

13

%

11

%

—

%

2

%

Brazil

103

93

11

%

11

%

—

%

—

%

Canada

72

71

1

%

—

%

(5

)%

6

%

Chile

34

34

—

%

—

%

—

%

—

%

China

62

67

(7

)%

7

%

—

%

(14

)%

France

40

42

(5

)%

3

%

—

%

(8

)%

Germany

69

57

21

%

2

%

—

%

19

%

Italy

40

37

8

%

1

%

—

%

7

%

Japan

41

43

(5

)%

(11

)%

—

%

6

%

Mexico

47

39

21

%

15

%

—

%

6

%

Spain

43

40

8

%

2

%

(1

)%

7

%

United Kingdom

72

81

(11

)%

(1

)%

(1

)%

(9

)%

Other developed markets

187

175

7

%

3

%

—

%

4

%

Other emerging markets

269

223

21

%

1

%

(1

)%

21

%

Six Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Divestitures

Organic Operational(a)

Total International

$

2,322

$

2,070

12

%

5

%

(1

)%

8

%

Australia

183

162

13

%

11

%

—

%

2

%

Brazil

193

174

11

%

11

%

—

%

—

%

Canada

145

141

3

%

3

%

(6

)%

6

%

Chile

72

69

4

%

2

%

—

%

2

%

China

125

122

2

%

5

%

—

%

(3

)%

France

77

81

(5

)%

6

%

—

%

(11

)%

Germany

128

112

14

%

6

%

—

%

8

%

Italy

79

67

18

%

8

%

(1

)%

11

%

Japan

76

75

1

%

(8

)%

—

%

9

%

Mexico

95

74

28

%

16

%

—

%

12

%

Spain

83

69

20

%

7

%

(1

)%

14

%

United Kingdom

150

155

(3

)%

3

%

(1

)%

(5

)%

Other developed markets

356

308

16

%

7

%

—

%

9

%

Other emerging markets

560

461

21

%

1

%

(1

)%

21

%

(a) Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures.

ZOETIS INC.

SEGMENT(a) EARNINGS

(UNAUDITED)

(millions of dollars)

Three Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Operational(b)

U.S.:

Revenue

$

1,266

$

1,356

(7

)%

—

%

(7

)%

Cost of Sales

214

208

3

%

—

%

3

%

Gross Profit

1,052

1,148

(8

)%

—

%

(8

)%

Gross Margin

83.1

%

84.7

%

Operating Expenses

215

218

(1

)%

—

%

(1

)%

Other (income)/deductions-net

—

—

*

*

*

U.S. Earnings

$

837

$

930

(10

)%

—

%

(10

)%

International:

Revenue

$

1,173

$

1,085

8

%

3

%

5

%

Cost of Sales

340

321

6

%

4

%

2

%

Gross Profit

833

764

9

%

3

%

6

%

Gross Margin

71.0

%

70.4

%

Operating Expenses

172

171

1

%

3

%

(2

)%

Other (income)/deductions-net

—

1

*

*

*

International Earnings

$

661

$

592

12

%

4

%

8

%

Total Reportable Segments

$

1,498

$

1,522

(2

)%

1

%

(3

)%

Other business activities(c)

(135

)

(129

)

5

%

Reconciling Items:

Corporate(d)

(315

)

(324

)

(3

)%

Purchase accounting adjustments(e)

(30

)

(33

)

(9

)%

Acquisition and divestiture-related costs(f)

(2

)

(1

)

*

Certain significant items(g)

(81

)

(48

)

69

%

Other unallocated(h)

(69

)

(75

)

(8

)%

Total Earnings(i)

$

866

$

912

(5

)%

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.

(c) Other business activities includes the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business.

(d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments.

(e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments.

(f) Acquisition and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business.

(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, costs related to our business process transformation program, as well as the impact of divestiture gains and losses.

(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs.

(i) Defined as income before provision for taxes on income.

* Calculation not meaningful.

  ZOETIS INC.

SEGMENT(a) EARNINGS

(UNAUDITED)

(millions of dollars)

Six Months Ended

June 30,

% Change

2026

2025

Reported Change

Foreign Exchange

Operational(b)

U.S.:

Revenue

$

2,356

$

2,539

(7

)%

—

%

(7

)%

Cost of Sales

408

407

—

%

—

%

—

%

Gross Profit

1,948

2,132

(9

)%

—

%

(9

)%

Gross Margin

82.7

%

84.0

%

Operating Expenses

414

423

(2

)%

—

%

(2

)%

Other (income)/deductions-net

—

—

*

*

*

U.S. Earnings

$

1,534

$

1,709

(10

)%

—

%

(10

)%

International:

Revenue

$

2,322

$

2,070

12

%

5

%

7

%

Cost of Sales

674

616

9

%

6

%

3

%

Gross Profit

1,648

1,454

13

%

4

%

9

%

Gross Margin

71.0

%

70.2

%

Operating Expenses

347

334

4

%

5

%

(1

)%

Other (income)/deductions-net

1

1

*

*

*

International Earnings

$

1,300

$

1,119

16

%

5

%

11

%

Total Reportable Segments

$

2,834

$

2,828

—

%

2

%

(2

)%

Other business activities(c)

(276

)

(262

)

5

%

Reconciling Items:

Corporate(d)

(630

)

(602

)

5

%

Purchase accounting adjustments(e)

(58

)

(65

)

(11

)%

Acquisition and divestiture-related costs(f)

(4

)

(1

)

*

Certain significant items(g)

(108

)

(54

)

*

Other unallocated(h)

(134

)

(159

)

(16

)%

Total Earnings(i)

$

1,624

$

1,685

(4

)%

(a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K.

(b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange.

(c) Other business activities includes the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business.

(d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments.

(e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments.

(f) Acquisition and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business.

(g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, costs related to our business process transformation program, as well as the impact of divestiture gains and losses.

(h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs.

(i) Defined as income before provision for taxes on income.

* Calculation not meaningful.

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