Revenue

9 Months Ended

Sep. 30, 2025

Revenue Recognition and Deferred Revenue [Abstract]

Revenue

4. Revenue

A. Revenue from Product Sales

We offer a diversified portfolio of products which allows us to capitalize on local and regional customer needs. Generally, our products are promoted to veterinarians and livestock producers by our sales organization which includes sales representatives and technical and veterinary operations specialists, and then sold directly by us or through distributors, retailers or e-commerce outlets. The depth of our product portfolio enables us to address the varying needs of customers in different species and geographies. Many of our top-selling product lines are distributed across both of our operating segments, leveraging our research and development (R&D) operations and manufacturing and supply chain network.

Over the course of our history, we have focused on developing a diverse portfolio of animal health products, including medicines, vaccines and diagnostics, complemented by biodevices, genetic tests and a range of services. We refer to all different brands of a particular product, or its dosage forms for all species, as a product line. We have approximately 300 comprehensive product lines, including products for both companion animals and livestock, within each of our major product categories.

On October 31, 2024, we completed the divestiture of our medicated feed additive product portfolio, certain water soluble products and related assets, and, as a result, our major product categories no longer include the category of medicated feed additives. See Note 5. Divestitures.

Our major product categories are:

•parasiticides: products that prevent or eliminate external and internal parasites such as fleas, ticks, lice and worms;

•vaccines: biological preparations that help prevent diseases of the respiratory, gastrointestinal and reproductive tracts or induce a specific immune response;

•dermatology: products that relieve itch associated with allergic conditions and atopic dermatitis;

•anti-infectives: products that prevent, kill or slow the growth of bacteria, fungi or protozoa;

•pain and sedation: products that alleviate pain, primarily associated with osteoarthritis and postoperative pain;

•other pharmaceutical: antiemetic, reproductive and oncology products; and

•animal health diagnostics: testing and analysis of blood, urine and other animal samples and related products and services, including point-of-care diagnostic products, instruments and reagents, rapid immunoassay tests, reference laboratory kits and services and blood glucose monitors.

Our remaining revenue is derived from other non-pharmaceutical product categories, such as nutritionals, as well as products and services in biodevices, genetic tests and precision animal health.

Our companion animal products help extend and improve the quality of life for pets; increase convenience and compliance for pet owners; and help veterinarians improve the quality of their care and the efficiency of their businesses. Growth in the companion animal medicines, vaccines and diagnostics sector is driven by economic development, related increases in disposable income and increases in pet ownership and spending on pet care. Companion animals are also living longer, deepening the human-animal bond, receiving increased medical treatment and benefiting from advances in animal health medicine, vaccines and diagnostics.

Our livestock products primarily help prevent or treat diseases and conditions to allow veterinarians and producers to care for their animals and to enable the cost-effective production of safe, high-quality animal protein. Human population growth and increasing standards of living are important long-term growth drivers for our livestock products in three major ways. First, population growth and increasing standards of living drive demand for improved nutrition, particularly through increased consumption of animal protein. Second, population growth leads to greater natural resource constraints driving a need for enhanced productivity. Finally, as standards of living improve and the global food chain faces increased scrutiny, there is more focus on food quality, safety and reliability of supply.

The following tables present our revenue disaggregated by geographic area, species and major product category:

Revenue by geographic area

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(MILLIONS OF DOLLARS)	2025		2024		2025		2024
United States	$	1,322	$	1,346	$	3,861	$	3,817
Australia	87		83		245		239
Brazil	100		101		281		301
Canada	70		66		210		202
Chile	29		31		99		93
China	45		61		177		205
France	40		36		113		111
Germany	62		57		171		166
Italy	35		31		102		95
Japan	34		33		115		109
Mexico	41		39		116		129
Spain	38		35		108		100
United Kingdom	82		80		236		230
Other developed markets	164		148		459		413
Other emerging markets	228		220		701		670
	2,377		2,367		6,994		6,880
Contract manufacturing & human health	23		21		86		59
Total Revenue	$	2,400	$	2,388	$	7,080	$	6,939

Revenue by major species

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(MILLIONS OF DOLLARS)	2025		2024		2025		2024
U.S.
Companion animal	$	1,069	$	1,068	$	3,218	$	3,046
Livestock	253		278		643		771
	1,322		1,346		3,861		3,817
International
Companion animal	583		541		1,768		1,662
Livestock	472		480		1,365		1,401
	1,055		1,021		3,133		3,063
Total
Companion animal	1,652		1,609		4,986		4,708
Livestock	725		758		2,008		2,172
Contract manufacturing & human health	23		21		86		59
Total Revenue	$	2,400	$	2,388	$	7,080	$	6,939

Revenue by species

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(MILLIONS OF DOLLARS)	2025		2024		2025		2024
Companion Animal:
Dogs and Cats	$	1,586	$	1,551	$	4,783	$	4,516
Horses	66		58		203		192
	1,652		1,609		4,986		4,708
Livestock:
Cattle	399		391		1,077		1,132
Swine	111		131		341		388
Poultry	106		139		315		410
Fish	78		70		205		177
Sheep and other	31		27		70		65
	725		758		2,008		2,172
Contract manufacturing & human health	23		21		86		59
Total Revenue	$	2,400	$	2,388	$	7,080	$	6,939

Revenue by major product category

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(MILLIONS OF DOLLARS)	2025		2024		2025		2024
Parasiticides	$	564	$	530	$	1,799	$	1,634
Vaccines	496		468		1,447		1,365
Dermatology	472		453		1,325		1,234
Anti-infectives	284		274		752		819
Pain and sedation	204		219		631		634
Other pharmaceutical	178		169		509		478
Animal health diagnostics	110		101		323		286
Other non-pharmaceutical	64		62		193		188
Medicated feed additives	5		91		15		242
	2,377		2,367		6,994		6,880
Contract manufacturing & human health	23		21		86		59
Total Revenue	$	2,400	$	2,388	$	7,080	$	6,939

B. Revenue from Contracts with Customers

Contract liabilities reflected within Other current liabilities as of December 31, 2024 and 2023, and subsequently recognized as revenue during each of the first nine months of 2025 and 2024 were $12 million and $4 million, respectively. Contract liabilities as of September 30, 2025 and December 31, 2024 were $18 million.

Estimated future revenue expected to be generated from long-term contracts with unsatisfied performance obligations as of September 30, 2025 is not material.