Zoetis reported Q2 results below expectations. Organic revenue declined 1%, adjusted net profit fell 2%, US revenue dropped 7% while international grew 6%, with Livestock up 11% partially offsetting. Companion animal pharmaceuticals remain under pressure: Derm fell 16%, parasiticides were flat, and diagnostics grew 12%. The main drivers are continued declines in clinic visit volumes, pet owners' heightened focus on cost-effectiveness, and intensifying competition in Derm/paras. Management lowered full-year guidance: revenue is now expected to decline 3%–1% and adjusted net profit to fall 9%–5%, while increasing gross-to-net investment to protect share. The signals lean cautious, but the report emphasizes that the long-term pipeline (12 potential blockbusters) and the new CFO structure remain unchanged.