Pfizer Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third-quarter 2026 total revenues were $16.6 billion, relatively flat year-over-year operationally; excluding Comirnaty and Paxlovid, operational revenue grew 7%.
• Revenues from launched and acquired products grew 32% operationally year-over-year.
• Reported diluted EPS was $0.56, down 9% from $0.62 in the prior-year quarter.
• Adjusted diluted EPS was $0.87, flat year-over-year.
• Reported net income was $3.2 billion, an 8% decrease from $3.5 billion in the prior-year quarter.
• Adjusted income was $5.0 billion, a 1% increase from $4.9 billion in the prior-year quarter.
• Cost of sales was $4.0 billion (24.3% of revenues), a 3% decrease operationally.
• Selling, informational, and administrative (SI&A) expenses were $3.3 billion, a 3% increase operationally.
• Research and development (R&D) expenses were $3.0 billion, an 18% increase operationally.
• Acquired in-process R&D expenses were $669 million, a 52% decrease from $1.4 billion in the prior-year quarter.
• Nine-month 2026 total revenues were $46.1 billion, a 2% increase from $45.0 billion in the prior-year period.
• Nine-month 2026 reported diluted EPS was $0.99, down 40% from $1.65.
• Nine-month 2026 adjusted diluted EPS was $2.39, down 7% from $2.56.

Guidance and Future Outlook:

• Raised full-year 2026 revenue guidance by $1.5 billion at the midpoint to a range of $62.0 to $64.0 billion (previously $60.5 to $62.5 billion).
• Raised and narrowed full-year 2026 adjusted diluted EPS guidance to a range of $2.95 to $3.05 (previously $2.80 to $3.00).
• The EPS guidance includes a one-time $650 million acquired in-process R&D charge related to the Innovent Biologics, Inc. agreement, impacting EPS by approximately $0.10.
• Guidance assumes an unfavorable revenue impact of approximately $1.1 billion due to generic and biosimilar competition.
• Guidance assumes diluted weighted-average shares outstanding of approximately 5.74 billion and no share repurchases in 2026.
• Full-year 2026 adjusted SI&A expense guidance is $12.5 to $13.5 billion.
• Full-year 2026 adjusted R&D expense guidance is $10.8 to $11.8 billion (previously $10.5 to $11.5 billion).
• Full-year 2026 effective tax rate on adjusted income is expected to be approximately 15.0%.

Business Segments and Product Lines:

• Primary Care: Revenues were $7.0 billion, down 9% operationally.
  • Eliquis revenues grew 25% operationally to $2.5 billion, driven by higher net price in the U.S. and global demand, partially offset by generic entry and price erosion in international markets.
  • Prevnar family revenues declined 10% operationally to $1.6 billion due to lower vaccination rates in the U.S. and market share erosion.
  • Comirnaty revenues declined 29% operationally to $808 million due to lower utilization and narrower vaccine recommendations.
  • Paxlovid revenues declined 63% operationally to $449 million due to lower COVID-19 infections.
  • Nurtec ODT/Vydura revenues grew 33% operationally to $547 million.
• Oncology: Revenues were $4.3 billion, up 10% operationally.
  • Padcev revenues grew 55% operationally to $720 million, driven by increased market share in first-line locally advanced or metastatic urothelial cancer.
  • Lorbrena revenues grew 43% operationally to $387 million, driven by increased patient share in first-line ALK-positive metastatic non-small cell lung cancer.
  • Ibrance revenues grew 2% operationally to $1.1 billion.
  • Xtandi revenues declined 6% operationally to $541 million.
  • Adcetris revenues grew 8% operationally to $231 million.
  • Tukysa revenues grew 29% operationally to $142 million.
• Specialty Care: Revenues were $3.3 billion, up 7% operationally.
  • Vyndaqel family revenues grew 12% operationally to $1.8 billion, driven by market expansion in the U.S. and improved access internationally.
  • Cibinqo revenues grew 26% operationally to $101 million.
  • Xeljanz revenues declined 32% operationally to $213 million.
• Hospital and Biosimilars: Revenues were $1.6 billion, up 2% operationally.
  • Oncology biosimilars revenues grew 20% operationally to $378 million.
• Pfizer CentreOne: Revenues were $300 million, down 13% operationally.
• Alliance and Royalty Revenues: Alliance revenues were $2.9 billion (up 24% total), and royalty revenues were $477 million (up 9% total).

Market and Competitive Landscape:

• Pfizer faces generic and biosimilar competition, with guidance assuming an unfavorable revenue impact of approximately $1.1 billion.
• Eliquis growth was partially offset by generic entry and price erosion in certain international markets.
• Prevnar family faced market share erosion in the adult indication in the U.S.
• Comirnaty utilization declined in the U.S. due to narrower vaccine recommendations.
• Padcev growth was driven by increased market share in the first-line locally advanced or metastatic urothelial cancer setting.
• Lorbrena growth was driven by increased patient share in the first-line ALK-positive metastatic non-small cell lung cancer setting in the U.S., China, and other international markets.

Risks and Challenges:

• The company faces unfavorable revenue impacts from recent and expected generic and biosimilar competition for products that have lost or are anticipated to lose patent or regulatory protection.
• Foreign exchange rates are a factor in operational variances, though excluded from operational growth calculations.
• The guidance excludes the completion of any business development transactions not completed as of November 3, 2026.
• The company notes that GAAP Reported results may be impacted by unusual gains and losses, acquisition-related expenses, asset impairments, and pending litigation.
• Specific asset impairments in the first nine months of 2026 included $3.8 billion for in-process research and development assets associated with sigvotatug vedotin and $525 million for Oxbryta technology rights.

Management Commentary and Tone:

• Dr. Albert Bourla, Chairman and CEO, stated the company had "another strong quarter with commercial momentum and disciplined execution," highlighting the obesity program and pipeline milestones in oncology, immunology, and vaccines.
• Cecile Guegan, CFO and EVP, noted "strong commercial performance globally and continued operational discipline," specifically highlighting the 32% operational revenue growth from launched and acquired products.
• Management expressed confidence in the business, citing strong year-to-date performance as the basis for raising full-year guidance.
• The tone emphasizes creating long-term shareholder value and delivering meaningful new medicines.

Other Key Points:

• Cecile Guegan was appointed Chief Financial Officer and Executive Vice President effective November 1, 2026.
• During the first nine months of 2026, Pfizer invested $8.3 billion in internal R&D and approximately $850 million in business development transactions, primarily the Innovent Biologics, Inc. in-licensing deal.
• Pfizer returned $7.3 billion to shareholders through cash dividends ($1.29 per share) in the first nine months of 2026.
• No share repurchases were completed in 2026; remaining authorization as of November 3, 2026, was $3.3 billion.
• Recent product developments include FDA approval for the 2026-2027 Comirnaty vaccine targeting the XFG variant, Phase 3 results for Elrexfio in multiple myeloma, and FDA expanded approval for Talzenna in prostate cancer.
• Pipeline progress includes eight key pivotal study starts, one pivotal readout, and two regulatory decisions.
• Pfizer CentreOne includes revenues from contract manufacturing, active pharmaceutical ingredient sales, and manufacturing supply agreements, as well as wind-down revenues from the former Pfizer Ignite segment.
• Commercial structure changes effective January 1, 2026, transitioned certain off-patent branded and generic sterile injectables and biosimilars to a new Hospital and Biosimilars product portfolio.