Pfizer earnings beat estimates; investors watch pipeline
Pfizer reported strong fourth-quarter adjusted earnings of 66 cents per share, surpassing expectations, but posted a net loss of $1.65 billion due to restructuring and intangible costs. For 2026, the company projects flat revenue and modest profit. Pfizer is focusing on obesity treatments, pipeline drugs like Xeljanz, and cost-cutting measures to support future growth.
High revenue earned
Pfizer posted adjusted earnings of 66 cents per share for Q4, above analyst estimates of 57 cents. The revenue was $17.56 billion, which is slightly higher than the expected $16.95 billion but down about 1% from last year. Despite strong adjusted results, the company reported a net loss of $1.65 billion. This was due to restructuring costs and expenses related to intangible assets. Last year, Pfizer had earned $410 million in the same quarter.
Pfizer's expectations for 2026
For 2026, Pfizer expects adjusted earnings between $2.80 and $3 per share. The revenue is projected between $59.5 billion and $62.5 billion, which is roughly flat compared with 2025. The company expects Covid product sales to fall by $1.5 billion and another $1.5 billion in revenue to be lost due to drugs losing exclusivity. Other pressures include margin reductions from Medicaid pricing agreements and competition for key drugs like the pneumonia vaccine Prevnar. These factors contributed to investor concerns and the stock decline.
Investment in new areas
Pfizer is investing in new areas to drive long-term growth. The $10 billion acquisition of Metsera, a biotech company, targets obesity treatments. Mid-stage trial results show that Metsera’s monthly injection can help patients lose significant weight. The company also plans to save $7.7 billion by the end of 2027 through two cost-cutting initiatives. Pipeline drugs such as Xeljanz and Xeljanz XR, which are used for arthritis and inflammatory conditions, are also being watched closely as Medicare price negotiations take effect in 2028.