TLDR
- Pfizer reported Q4 adjusted earnings of 66 cents per share, beating Wall Street’s 56-cent estimate, with revenue of $17.6 billion topping the $16.8 billion forecast.
- The company’s 2026 revenue guidance of $59.5-$62.5 billion and earnings guidance of $2.80-$3 per share fell short of analyst expectations of $61.9 billion and $2.97 per share.
- Covid product sales continued declining with Comirnaty revenue down 35% and Paxlovid down 70%, but non-Covid revenue grew 9% operationally.
- Pfizer reported positive results from its monthly GLP-1 weight-loss injection trial, showing 12.3% placebo-adjusted weight loss at 28 weeks.
- The company posted a $1.6 billion quarterly loss due to $4.4 billion in asset impairments and confirmed no share buybacks planned for 2026 as it focuses on debt reduction.
Pfizer shares dropped 3.2% in morning trading Tuesday despite crushing fourth-quarter earnings expectations. The disconnect between strong quarterly results and falling stock price reveals investor concerns about the company’s near-term trajectory.
The pharmaceutical giant posted adjusted earnings of 66 cents per share, easily beating Wall Street’s 56-cent estimate. Revenue came in at $17.6 billion, topping the $16.8 billion consensus forecast.
But the market wasn’t buying the celebration. Pfizer’s 2026 guidance immediately dampened enthusiasm for the quarterly beat.
The company reaffirmed its December outlook calling for revenue between $59.5 billion and $62.5 billion. Analysts had been expecting $61.9 billion. Adjusted earnings guidance of $2.80 to $3 per share also missed the $2.97 consensus estimate.
Adding to investor worries, Pfizer confirmed it expects no share buybacks in 2026. The company is prioritizing debt reduction while funding an ambitious research pipeline.
The Covid reality check continues to weigh on results. Comirnaty vaccine revenue plunged 35% in the fourth quarter. Paxlovid antiviral sales crashed 70%.
The Bright Spots Beyond Covid
Strip out the Covid products and a different picture emerges. Revenue grew 9% operationally when excluding Comirnaty and Paxlovid contributions.
Prevnar vaccine revenue climbed 8% in the quarter. Blood thinner Eliquis also posted 8% growth despite facing generic competition in some markets.
Bladder cancer treatment Padcev saw revenue jump 15% globally. The drug continues grabbing market share in its category.
Pfizer is banking heavily on 20 pivotal clinical trials starting in 2026. Half of these studies focus on obesity treatments acquired through the November purchase of Metsera.
The company announced positive topline results from a GLP-1 weight-loss injection study. Patients achieved 12.3% placebo-adjusted weight loss at 28 weeks when transitioning from weekly to monthly injections.
Citi Research analyst Geoff Meacham highlighted the successful switch to monthly dosing as particularly encouraging. Only around five patients discontinued treatment during the study.
Fighting for Position in Weight Loss
Pfizer faces an uphill battle in the obesity drug market. Eli Lilly and Novo Nordisk currently dominate with Zepbound and Wegovy.
The monthly injection schedule represents Pfizer’s differentiation strategy. Current market leaders require weekly shots.
Chief Scientific Officer Chris Boshoff described clinical results on the anti-obesity products as encouraging. However, the company isn’t targeting government approval until 2028.
Pfizer’s earlier oral GLP-1 pill program hit a wall. The company halted development of danuglipron last August after a patient suffered a liver injury.
The quarterly report showed a $1.6 billion loss compared to $410 million in profits during the same quarter last year. Asset impairments totaling $4.4 billion drove the loss.
Full-year 2025 revenue reached $62.6 billion, down 2% from the prior year. Pfizer projects 2026 revenue slightly below that level.
The company spent $10.4 billion on research and development in 2025. R&D expenses are expected to rise to $10.5-$11.5 billion in 2026.
Pfizer anticipates losing around $1.5 billion in revenue from generic competition in 2026. CEO Albert Bourla described 2025 performance as solid and providing a foundation for future growth.
The company continues paying its dividend while pausing share repurchases. Pfizer acquired cancer drug specialist Seagen during the pandemic era as part of its portfolio expansion strategy.
Comirnaty still generated $2.3 billion in the fourth quarter despite the 35% decline. This offset some of Paxlovid’s steeper revenue drop within the Covid franchise.
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