v3.26.1
Revenue
6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue
Note 3. Revenue
The following table summarizes the activity in our global sales rebates and discounts liability:
Six Months Ended June 30,
20262025
Beginning balance$416 $332 
Reduction of revenue588 469 
Payments(550)(448)
Foreign currency translation adjustments(4)14 
Ending balance$450 $367 
Adjustments to revenue recognized as a result of changes in estimates during the six months ended June 30, 2026 and 2025, for product shipped in previous periods were not material. Actual global product returns were approximately 1% of net revenue for the six months ended June 30, 2026 and 2025.
Disaggregation of Revenue
The following table summarizes our revenue disaggregated by product category:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Pet Health$718 $643 $1,428 $1,278 
Farm Animal:
Cattle313 268 629 540 
Poultry223 215 453 404 
Swine97 100 193 185 
Total Farm Animal633 583 1,275 1,129 
Contract Manufacturing and Other (1)
17 15 36 27 
Revenue$1,368 $1,241 $2,739 $2,434 
(1)Represents revenue from arrangements in which we manufacture products on behalf of a third party and royalty revenue. Royalty revenue sold to a third party in May 2025 totaled $9 million and $4 million for the three months ended June 30, 2026 and 2025, respectively, and $18 million and $4 million for the six months ended June 30, 2026 and 2025, respectively. While we are no longer entitled to these royalties, we are required under GAAP to continue recognizing them as revenue. See Note 10. Liability for Sale of Future Revenue for additional information.
The following table summarizes our revenue disaggregated by geographic area:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
United States$663 $593 $1,268 $1,147 
International705 648 1,471 1,287 
Revenue$1,368 $1,241 $2,739 $2,434 
We have a single customer that accounted for approximately 12% of revenue for the six months ended June 30, 2026 and 2025. Product sales with this customer resulted in accounts receivable of $131 million and $107 million at June 30, 2026 and December 31, 2025, respectively.