PFE Q2 Earnings Top, 2026 Sales View Tweaked, COVID Forecast Cut

International revenues rose 3% on an operational basis to $6.18 billion. U.S. revenues were flat at $8.86 billion.

PFE’s Segment Discussion

Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. In first-quarter 2026, Pfizer created a new Hospital and Biosimilars Division within its Biopharma segment, moving certain off-patent brands, generic sterile injectables and biosimilars out of Specialty Care and Oncology.

Primary Care sales declined 2% on an operational basis to $5.5 billion. Oncology revenues rose 2% to $4.17 billion, while Specialty Care sales increased 7% to $3.35 billion. Hospital and Biosimilars revenues declined 2% to $1.64 billion.

PFE Primary Care Sales

In Primary Care, alliance revenues and direct sales from partner Bristol-Myers BMY for Eliquis increased 19% to $2.43 billion as higher demand trends globally were partially offset by price and generic erosion in some ex-U.S. markets. Eliquis sales beat the Zacks Consensus Estimate of $1.98 billion.

Prevnar family revenues declined 4% to $1.34 billion and missed the consensus estimate of $1.39 billion. U.S. sales fell 13%, more than offsetting a 10% increase in the international market.

Direct sales and alliance revenues from partner BioNTech BNTX for the COVID vaccine, Comirnaty, were $261.0 million in the quarter, down 34% year over year, missing the consensus estimate of $278 million. The decrease reflected a smaller favorable adjustment to the returns provision and lower U.S. utilization following narrower vaccination recommendations.

Paxlovid revenues plunged 95% to $21 million due to lower COVID-19 infections and reduced government purchases in some international markets. Sales fell well short of the consensus estimate of $119 million.

Nurtec ODT/Vydura contributed $421.0 million in the quarter, up 17% year over year.

Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $208 million, up 43% on an operational basis.

PFE’s Oncology Sales

In Oncology, Ibrance revenues were flat at $1.06 billion, exceeding the Zacks Consensus Estimate of $1.05 billion.

Padcev sales climbed 23% to $667 million and surpassed the consensus estimate of $661 million. Padcev benefited from strong demand trends mainly due to market share gains in first-line metastatic urothelial cancer and launch momentum from the new muscle-invasive bladder cancer indication.

Xtandi alliance revenues declined 6% to $534 million. Lorbrena revenues rose 37% to $354 million while Adcetris sales fell 23% to $196 million. Inlyta revenues decreased 12% to $218 million. Braftovi/Mektovi revenues rose 23% to $223 million.

Pfizer's Specialty Care and Hospital Sales

Vyndaqel family revenues increased 8% to $1.76 billion, slightly exceeding the Zacks Consensus Estimate of $1.75 billion. Growth reflected continued patient diagnosis and improved access in international markets, along with U.S. market expansion, which partially offset the impact of price erosion as a result of new payer contracts in the United States.

Xeljanz sales declined 23% to $251 million, while Enbrel revenues fell 10% to $142 million. Cibinqo sales rose 34% to $94 million.

Within Hospital and Biosimilars, oncology biosimilar sales increased 1% to $359 million, and Inflectra revenues rose 23% to $171 million.

PFE Tweaks 2026 Sales Guidance, Keeps EPS View

Pfizer raised the lower end of its 2026 revenue guidance. The company now expects revenues between $60.5 billion and $62.5 billion, compared with the previous range of $59.5 billion to $62.5 billion. The range indicates a decline from 2025 revenues of $62.6 billion due to lower revenues from COVID products and loss of revenues from the upcoming patent cliff.

The revised outlook reflects approximately $1.5 billion of better-than-expected non-COVID product performance, partly offset by a $1 billion reduction in expected COVID-19 product revenues. Pfizer now expects around $4 billion from COVID-19 products in 2026, lower than the prior expectation of around $5 billion.

The adjusted earnings guidance was reaffirmed at $2.80-$3.00 per share. However, the guidance now absorbs a 10 cents per share charge related to its licensing deal with Innovent Biologics.

Some other guidance ranges were also maintained. Adjusted R&D expenses are expected to be in the range of $10.5 billion to $11.5 billion in 2026, while adjusted SI&A spending is targeted between $12.5 billion and $13.5 billion. The adjusted effective tax rate is expected to be approximately 15% in 2026.

Our Take on PFE’s Q2 Results

Pfizer delivered a solid second quarter, beating estimates for both earnings and revenues. Eliquis, Vyndaqel, Ibrance and Padcev slightly exceeded their respective consensus estimates, while Prevnar, Comirnaty and Paxlovid fell short.

Strength in non-COVID products continued to offset declining pandemic-related sales for Pfizer. Excluding BioNTech-partnered Comirnaty and Paxlovid, revenues increased 5% operationally.

Sales of Pfizer’s newly launched and acquired products grew 18% on an operational basis in the quarter, in line with the company’s expectation of record continued double-digit growth.

Pfizer raised the lower end of its revenue outlook for 2026, backed by a continued strong performance of its new and acquired products. Pfizer also said it expects additional cost savings of $2.5 billion, which it expects to realize from 2027 through 2029.

Shares were rising slightly in pre-market trading in response to the better-than-expected quarterly performance.

Pfizer’s stock has risen 0.5% so far this year compared with an increase of 10.0% for the industry.

Image Source: Zacks Investment Research

Pfizer is navigating a difficult transition following the sharp decline in COVID-related sales. The market is concerned about Pfizer’s ability to replace declining COVID-related revenues and offset upcoming patent expirations through new product launches, pipeline development and contributions from acquisitions.

Pfizer’s revenue and earnings guidance for 2026 indicates mostly flat to slightly negative growth.

However, though Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years starting in 2029. It expects the growth to be driven by its advancing R&D pipeline and the continued progress of new and acquired products.

The company is rebuilding its pipeline in oncology and obesity, which it believes can drive growth in 2028 and beyond. Several key pivotal readouts are expected over the next 12 months.

The company expects its recently launched and acquired products and a strong pipeline to help revive top-line growth toward the end of the decade.

PFE’s Zacks Rank

Pfizer has a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research