Polen Capital Management Sells All Zoetis Inc. Holdings

Polen Capital Management Llc sold its entire position in Zoetis Inc., a global leader in animal health, as disclosed in its Q2 2026 investor letter. The investment firm cited a slowdown in business growth driven by new competitive entry in dermatology, which it identified as a critical growth area for the company.

Polen Capital expects that revenue growth for Zoetis is unlikely to return to high-single-digit levels until late 2027. Consequently, the firm redeployed its capital into sectors with stronger current momentum, specifically focusing on aerospace, power demand, and AI infrastructure.

Market analysis indicates Zoetis is facing additional pressure from reduced guidance and weaker sales for companion animals in the United States. Despite these challenges, the company continues to aggressively repurchase shares and maintains gross margins above 70%.