Zoetis (NYSE: ZTS) shares gained approximately 3% in pre-market trading Thursday after the animal health company delivered fourth-quarter results that exceeded expectations and issued a stronger-than-anticipated outlook for fiscal 2026.

The company reported adjusted earnings per share of $1.48 for the quarter, surpassing analyst estimates of $1.40, according to data compiled by LSEG. The earnings outperformance was primarily driven by stronger-than-expected revenue and gross margins.

Looking ahead, Zoetis projected 2026 adjusted EPS in the range of $7.00 to $7.10, with the midpoint above Wall Street's consensus estimate of $6.80. Revenue for 2026 is expected to fall between $9.825 billion and $10.025 billion, modestly exceeding the consensus projection of $9.914 billion.

The solid quarterly performance and forward guidance appeared sufficient to bolster investor sentiment, even as some analysts raised concerns regarding the composition of the earnings beat.