We recently published the animal health industry’s first Sentiment Index and the respondents’ sentiment for 2026 was “cautiously optimistic.” But after watching the stock market’s response to Zoetis’s 1Q performance and their updated full year outlook, perhaps the sentiment could turn pessimistic. So, I thought I would try to find some optimism for you this week.
Here are the 1Q 2026 growth rates (corrected for exchange) for the animal health businesses in the companies that have reported so far:
Of these 13 companies, 9 of them are at or above the 5-6% long term average animal health industry growth rates. So, when I saw a recent article from McKinsey, The case for optimism in uncertain times, I had to read it.
The author makes a great point when he states, “Many influential figures have argued, correctly, I think, that long-term optimism is not just descriptive, it’s generative: it helps to shape a better future by motivating the search for solutions.” In the article, the author references a book, A Century of Plenty written by several McKinsey authors. “[The authors] …argue that sustained growth is good, that there is enough for all, that it’s up to us to build the future, and that how we think and talk about the future really matters.”
Progress is uneven, unpredictable and driven by innovation. And innovation was the primary reason for optimism in our Sentiment Index. The article concludes “Again and again, optimists have been on the right side of history. Optimism keeps us moving forward.” Even after some have had slow quarter.
Bob Jones
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