Pfizer Inc. PFE used its second-quarter 2026 earnings call to stress that stronger non-COVID products are offsetting a weak infection season as investment targets oncology and obesity.
Management raised the midpoint of full-year revenue guidance, expanded savings targets and reinforced the dividend. The call also clarified expectations for pipeline readouts central to Pfizer’s post-2028 growth plan.
PFE Raises Revenue Outlook Despite COVID Drag
Incoming Interim CFO Cecile Guegan said full-year revenue guidance now stands at $60.5 billion to $62.5 billion, up $500 million at the midpoint. Better-than-expected non-COVID performance added about $1.5 billion to the outlook.
That strength was offset by a $1 billion reduction in expected COVID-19 revenue to about $4 billion. Guegan said low infection levels are limiting Paxlovid, while Comirnaty sales remain weighted toward the vaccination season.
Adjusted EPS of $0.77 topped the Zacks Consensus Estimate of $0.68. Revenue of $15.03 billion beat the $14.45 billion estimate.
Pfizer Leans on Launches and Acquired Assets
Guegan said launched and acquired products generated $3.2 billion and grew 18% operationally. Excluding prior-year one-time effects, growth was 27%.
CEO Albert Bourla highlighted Seagen, Metsera and Biohaven as Pfizer’s transaction platforms. He said the legacy Seagen portfolio delivered 21% U.S. growth after excluding a prior-year stocking benefit, while Nurtec posted strong growth.
Chief U.S. commercial officer Aamir Malik told a JPMorgan analyst that Padcev’s growth rate should moderate as advanced-disease penetration rises. Further upside should come from muscle-invasive bladder cancer and the bladder-sparing study.
PFE Expands Savings While Funding R&D
Guegan outlined $2.5 billion of additional net savings expected from 2027 through 2029. The plan includes $1 billion from technology and simplification and $1.5 billion from manufacturing optimization.
Pfizer now expects $6.7 billion of net savings from cost realignment and $3 billion from manufacturing optimization through 2029. Guegan said the measures should support margin expansion and investment.
Adjusted gross margin was 76% and adjusted operating margin was 35%. Adjusted R&D expense rose 12% operationally as spending increased on oncology and obesity candidates, while adjusted SI&A expense fell 3% operationally.
Pfizer Sets a High Bar for Pipeline Catalysts
Chief scientific officer Chris Boshoff said Pfizer expects five regulatory decisions, eight key readouts and 19 pivotal study starts over the next 12 months. Management targets a risk-adjusted high-single-digit revenue CAGR from year-end 2028 through 2033.
A BMO Capital Markets analyst asked about the fourth-quarter MEVPRO-1 prostate cancer readout. Boshoff said the event-driven study is designed around an approximately 30% clinically meaningful benefit over standard care and confirmed that the required events had not been reached.
Berobenatide has 10 Phase III studies planned in 2026 and a first approval targeted for 2028. Boshoff told a Citi analyst that Pfizer wants the monthly amylin combination to outperform berobenatide alone, with SOLIS-1 data expected in 2027.
PFE Defends Dividend and Limits Deal Size
A Morgan Stanley analyst asked what could prompt a dividend cut. Bourla said Pfizer expects to maintain the dividend even under its most stretched scenarios and resume growth after the loss-of-exclusivity period.
Guegan put business development capacity at about $6 billion after the Innovent transaction. She said leverage ended the quarter at 2.7 times and could remain near that level or move modestly higher during the transition.
Bourla said future transactions should be smaller bolt-ons. He identified oncology, immuno-inflammation, obesity and vaccines as the areas where Pfizer will remain selective.
Pfizer’s Priorities After the Call
Management’s posture centered on execution through the patent-loss period: protect the dividend, use savings to fund the pipeline and rely on launched and acquired products to offset COVID weakness and exclusivity losses.
The near-term focus is commercial follow-through in Padcev and Nurtec, obesity-program execution and a dense slate of oncology and immunology catalysts over the coming year.
Zacks Signals for PFE
PFE carries a Zacks Rank #3 (Hold). Its Value Score of A is favorable, while the Growth Score of D and Momentum Score of F indicate weaker readings. The VGM Score of C reflects a middle-range combined profile.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The mix does not match the stronger combination of a Zacks Rank #1 or #2 with an A or B Style Score. The Zacks Rank can change as earnings estimates are revised after the just-reported results.
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Pfizer Inc. (PFE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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