$PFE earnings report

Pfizer reported third-quarter 2026 revenue of $16,583 million, compared with $16,654 million in the prior-year quarter. The company characterized the result as relatively flat operationally, with a $57 million operational decline and a $15 million unfavorable foreign-exchange impact. The underlying commercial portfolio was materially stronger than the consolidated total indicates: revenue excluding Comirnaty and Paxlovid grew 7% operationally, while Launched and Acquired Products grew 32% operationally.

Portfolio mix remained the central feature of the quarter. Eliquis rose $513 million, or 25%, operationally, and Padcev, Vyndaqel family, Nurtec ODT/Vydura and Lorbrena each posted double-digit operational growth. These gains largely offset declines of $771 million for Paxlovid, $339 million for Comirnaty and $180 million for the Prevnar family. Primary Care declined 9%, while Oncology grew 10%, Specialty Care grew 7% and Hospital and Biosimilars grew 2%.

Profitability showed a divergence between reported and adjusted results. Reported net income declined 8% to $3,242 million and reported diluted EPS declined 9% to $0.56. Adjusted income increased 1% to $4,985 million and adjusted diluted EPS was unchanged at $0.87. Cost of sales declined 3%, and reported cost of sales as a percentage of revenue decreased to 24.3% from 25.0%. Higher R&D spending was notable, with reported and adjusted R&D expenses each increasing 18% as the company increased spending in certain oncology and obesity product candidates.

For the first nine months, revenue increased 2% to $46,067 million, but reported net income declined 40% to $5,681 million and adjusted diluted EPS declined 7% to $2.39. The period included $4.325 billion of intangible asset impairment charges and $1.047 billion of certain legal matters, net, within GAAP other income/deductions. Pfizer also recorded a $650 million acquired IPR&D charge in the third quarter related to its Innovent Biologics, Inc. in-licensing and collaboration agreement.

Management raised full-year 2026 revenue guidance by $1.5 billion at the midpoint to $62.0 to $64.0 billion and raised and narrowed adjusted diluted EPS guidance to $2.95 to $3.05. Capital allocation remained focused on reinvestment, dividends and delevering: Pfizer invested $8.3 billion in internal R&D, invested approximately $850 million in business development transactions and paid $7.3 billion in cash dividends during the first nine months. The company completed no share repurchases in 2026 and does not anticipate repurchases during the year.

Second-quarter revenue was $15,034 million, up 3% year over year and 1% operationally. The reported growth rate includes a favorable impact of foreign exchange of $217 million, while the operational increase of $164 million was driven by key non-COVID products. Excluding Comirnaty and Paxlovid, revenue grew 5% operationally, and launched and acquired products grew 18% operationally. Pfizer raised the midpoint of its full-year revenue guidance to $61.5 billion from $61.0 billion.

Product mix remains centered on growth brands. Eliquis, Padcev, the Vyndaqel family and Lorbrena each posted positive operational growth, with Lorbrena up 37% operationally and Padcev up 23% operationally. In contrast, Paxlovid declined 95% operationally and Comirnaty declined 34% operationally. Pfizer now expects approximately $4 billion in COVID-19 product revenue for 2026, down from approximately $5 billion previously, while citing better-than-expected non-COVID product performance of approximately $1.5 billion.

Profitability was materially affected by non-cash intangible asset impairments. Pfizer reported a second-quarter net loss of $(248) million and reported diluted LPS of $(0.04), versus reported net income of $2,910 million and diluted EPS of $0.51 in the prior-year quarter. Other (income)/deductions, net rose to $3,716 million from $739 million, primarily due to intangible asset impairment charges and, to a lesser extent, charges for certain legal matters. Adjusted income was broadly flat at $4,440 million, while adjusted diluted EPS was $0.77 compared with $0.78.

Cost pressure was evident in the reported cost of sales ratio, which rose to 27.2% of revenues from 25.8%, reflecting unfavorable sales mix and higher amortization of the fair value step-up of acquired inventory, primarily driven by the Oxbryta impairment. SI&A Expenses were essentially flat on a reported basis and declined 1% operationally, while R&D Expenses increased 13% operationally due to oncology and obesity product candidate spending. Pfizer also announced $2.5 billion of additional anticipated productivity enhancement savings expected from 2027 through 2029.

Capital deployment during the first six months included $5.3 billion in internal R&D, approximately $170 million in business development transactions and $4.9 billion of cash dividends. No share repurchases have been completed to date in 2026, and current guidance does not anticipate repurchases in 2026. The company reaffirmed adjusted diluted EPS guidance of $2.80 to $3.00, which absorbs a $650 million Acquired In-Process R&D charge to be recorded in the third quarter of 2026 and an expected unfavorable impact of approximately $0.10 related to the Innovent Biologics, Inc. transaction.