In terms of numbers, our revenue grew 4% operationally, with the U.S. segment up 6% and International up 3%.
Our companion animal products continue to drive our business performance, with 13% operational growth, while livestock products declined 5%.
Our adjusted net income increased 4% operationally in the second quarter.
Our recently launched parasiticides, Simparica Trio, ProHeart 12 and Revolution Plus as well as our key dermatology portfolio of Apoquel and Cytopoint, provide a solid foundation that has continued to perform well this year.
In terms of supply chain, Zoetis has maintained a reliable inventory of critical medicines, vaccines and diagnostics to our customers and distributors in more than 100 markets around the world.
For Zoetis, we expect our overall revenue growth for the remainder of the year to be driven largely by companion animal products, especially our parasiticides and key dermatology portfolio.
We generated revenue of $1.5 billion, which was flat on a reported basis and 4% growth operationally.
Adjusted net income of $427 million decreased 2% on a reported basis and increased 4% operationally.
Foreign exchange in the quarter had an unfavorable impact of 4% on revenue.
Operational revenue growth of 4% was driven by 2% price and 2% volume.
Volume growth of 2% includes 3% from new products, 3% from key dermatology products, 1% from acquisitions and a decline of 5% in other in-line products.
Companion animal products led the way in terms of species growth, growing 13% operationally, while livestock declined 5% operationally.
New products contributed 3% to overall growth in the quarter, driven by Simparica Trio, ProHeart 12, Revolution Plus and our Alpha Flux parasiticide for salmon in Chile.
We remain excited by the launch of Simparica Trio and are reaffirming the range of $100 million to $125 million for full year incremental revenue.
Global sales of our key dermatology portfolio were $224 million in the quarter, growing 24% operationally and contributing 3% to overall revenue growth.
Recent acquisitions contributed 1% growth this quarter, which includes Platinum Performance and our reference lab expansion strategy.
U.S. revenue grew 6%, with companion animal products growing 19% and livestock products declining by 18%.
U.S. key dermatology sales were $160 million for the quarter, growing 26%.
Simparica Trio performed well in the U.S. with sales of $36 million despite challenging market conditions in Q2.
Diagnostic sales increased 18% in the quarter, largely driven by our reference lab acquisitions.
U.S. livestock declined 18% in the quarter, driven by lower sales across all species.
Our International segment had operational revenue growth of 3% in the second quarter, with more balanced performance across our companion animal and livestock portfolios.
Companion animal operational revenue growth was 2% and livestock operational growth was 4%.
Swine grew double digits in the quarter, primarily driven by China, which grew 25%, as key accounts continue to expand their herds and production shifts from smaller farms to larger-scale operations.
Adjusted gross margin of 71.1% increased slightly on a reported basis compared to the prior year due to price, favorable manufacturing costs and product mix, which were partially offset by foreign exchange, recent acquisitions and higher inventory charges.
The adjusted effective tax rate for the quarter was 22.3%.
Adjusted net income for the quarter grew 4% operationally, primarily driven by revenue growth, and adjusted diluted earnings per share grew 6% operationally.
We ended the second quarter with approximately $3.4 billion in cash and cash equivalents, including the proceeds from our $1.25 billion long-term debt issuance in May, of which $500 million is earmarked for repayment of our November 2020 maturity.
We have access to a $1 billion revolving credit facility and a coinciding commercial paper program, both of which remain undrawn.
With regard to returning excess cash to shareholders, we remain committed to our 2020 dividend, which represents a 22% increase over 2019.
In Q1, we repurchased $250 million in Zoetis shares before suspending the program in the second quarter in order to conserve cash.
We have approximately $1.4 billion remaining under our multiyear share repurchase program.
Our current guidance includes favorable foreign exchange revenue of approximately $50 million and approximately $10 million at adjusted net income versus May guidance.
For revenue, we are raising and narrowing our guidance range with projected revenue now between $6.3 billion and $6.475 billion and operational revenue growth of between 3% and 6% for the full year versus a negative 2% to positive 3% we had in our May guidance.
Adjusted net income is now expected to be in the range of between $1.685 billion and $1.765 billion, representing operational growth, a positive 1% to positive 5% compared to our prior guidance of negative 9% to negative 2%.
Adjusted diluted earnings per share is now expected to be in the range of $3.52 to $3.68 and reported diluted earnings per share to be in the range of $3.14 to $3.32.

Summary:
For Zoetis, we expect our overall revenue growth for the remainder of the year to be driven largely by companion animal products, especially our parasiticides and key dermatology portfolio.
We generated revenue of $1.5 billion, which was flat on a reported basis and 4% growth operationally.
For revenue, we are raising and narrowing our guidance range with projected revenue now between $6.3 billion and $6.475 billion and operational revenue growth of between 3% and 6% for the full year versus a negative 2% to positive 3% we had in our May guidance.
Adjusted diluted earnings per share is now expected to be in the range of $3.52 to $3.68 and reported diluted earnings per share to be in the range of $3.14 to $3.32.