Pet health companies register surge in revenue in FY2025

The Indianapolis-based pharmaceutical company Elanco Animal Health reported a 6% year-over-year (YoY) increase in revenue for fiscal year (FY) 2025, reaching $4.7 billion (€4 billion) for the period ending 31 December 2025.

Among growth drivers, Elanco highlighted penetration of its products in US vet clinics and market share gains in Brazil, Japan, the UK, France, Italy and Spain. 

This is the latest in a series of positive results from animal health companies this year, following 12% revenue growth at Trupanion, 10% at IDEXX Laboratories and 2% at Zoetis. 

GlobalPETS takes a look at its results, growth drivers and challenges over the past year.

Rising revenue

A medical veterinary tools business, IDEXX’s revenue totaled $4.3 billion (€3.6B) in FY2025, driven by 8% organic growth in companion animal diagnostics recurring revenue, the company says.

A leading provider of pet insurance, Trupanion’s revenue was $1.4 billion (€1.2B) during the period, supported by a 16% growth in subscription business income. 

Zoetis, the manufacturer of animal health products, registered $9.5 billion (€8B) in revenue, of which $6.6 billion (€5.6B) came from the companion animal segment. The company attributed the revenue increase to strong performance in international markets, which delivered 8% organic operational revenue growth, while the US market rose 4%. 

Profitability

While top-line growth was broadly positive, bottom-line performance was less uniform. Elanco reported a net loss of $232 million (€196M) during the period, Zoetis reported $2.7 billion (€2.2B) in net income, representing an 8% YoY increase. 

Meanwhile, Trupanion managed to reverse the net loss of $9.6 million (€8M) recorded in FY2024 into a net profit of $19.4 million (€16.4M) last year. Part of it was due to a $7.8 million (€6.6M) gain from the exchange of a preferred stock investment for intellectual property in 2025 (switching an investment for valuable technology).

Beyond margins, companies also faced changing demands and invested in innovation and pricing strategies to drive performance.

Two sides of high vet costs

Throughout the year, Zoetis saw a decline in therapeutic visits and doses, which CEO Kristin Peck attributes to economic pressure on Gen Z and millennial pet owners. “At the same time, emergency and urgent care continue to show strength, which reinforces our view that this is not a decline in underlying demand for care, but rather greater price sensitivity and tighter household budgets when it comes to the cost of routine care,” Peck adds.

The CEO also cites price pressures from elevated promotional activity at launch. “In response, we are taking targeted actions to offset these pressures by optimizing our channel mix, increasing reach and frequency with veterinarians,” she explains.

While pet owners face budgetary pressure for pet care in general, they are also seeking to provision for these costs, which is boosting the insurance business. According to Margi Tooth, President and CEO of Trupanion, the number of insured pets accelerated 8% YoY due to increased acquisition and retention.

“Awareness of pet medical insurance continues to rise as pet parents increasingly seek coverage earlier, reflecting a clearer understanding of the true cost of care and a stronger desire to be financially prepared,” the CEO said during the earnings conference call. 

This trend was also reflected in IDEXX’s performance, with a surge in veterinary visit growth among dogs over 5 years old and an increasing share of visits that include diagnostic testing. 

“It highlights the structural demand for advanced diagnostics and the role it plays in driving the broader veterinary care. Customer retention remains in the high nineties for our global companion animal diagnostic business,” CEO Jay Mazelsky said in prepared remarks. 

Innovation as booster

At Elanco, vet penetration was one of the strongest growth drivers, especially with the recently launched antiparasitic Credelio Quattro and Zenrelia, a prescription medicine to treat allergic dermatitis. According to the company, retail sales also grew during FY2025.

The 2 medicines are part of what Elanco calls “Big 6 Major Innovation Products,” which also comprises 2 other solutions for pets and 2 for livestock, all released in 2025. The company expects the products to drive $1.2 billion (€1B) in incremental revenue in 2026. 

“This target is led by our Big Six gaining traction in the global marketplace,” CEO Jeff Simmons said during the earnings call. “We are driving sustainable growth as we expect the Big Six to double in revenue from 2025 to 2028 on top of a stabilizing base,” Simmons added. The company already has another 5-6 potential approvals expected through 2031. 

The results from the 4 companies point to a sector that remains structurally resilient, even amid price pressure. Investments in innovation and new product launches reinforce their bet on pet care as a key segment.