Albert Burla, CEO of Pfizer, speaking on Squawk on the Street at the World Economic Forum in Davos on January 20, 2026.
Oscar Molina | CNBC
Pfizer on Tuesday reported better-than-estimated fourth-quarter results even amid weaker demand for its Covid products. confirmed its modest 2026 guidance surprised investors in December.
The pharmaceutical giant is looking for long-term investments in its pipeline, including its pipeline $10 billion acquisition of obesity biotech MetseraTo counter the drop in sales of Covid products and the decline of older drugs. Pfizer moved to highlight the promise of that investment on Tuesday, when it also reported mid-term data from Metsera showing that it can take a once-monthly anti-obesity injection and lose weight.
Additionally, Pfizer is poised to cut costs by about $7.7 billion by the end of 2027 as part of two separate initiatives.
The company’s fourth-quarter earnings compared to Wall Street expectations, based on a survey of LSEG analysts:
- Earnings per share: Adjusted to 66 cents vs. 57 cents expected
- Input: $17.56 billion vs. $16.95 billion expected
Pfizer reported fourth-quarter revenue of $17.56 billion, down about 1% from the year-ago period. This is mainly due to lower demand for its Covid vaccine and the antiviral pill Paxlovide.
The company posted a net loss of $1.65 billion, or 29 cents per share. That compares with net income of $410 million, or 7 cents per share, in the year-ago period.
Excluding certain items, including restructuring charges and intangible asset charges, the company posted earnings of 66 cents per share for the quarter.
Pfizer expects 2026 adjusted earnings of $2.80 to $3 per share and total revenue of $59.5 billion to $62.5 billion. These sales will be largely flat compared to 2025 revenue.
Pfizer previously said the forecast for lower revenue was due to lower sales of its Covid vaccine and antiviral pill Paxlovid, which it expects to drop to $5 billion by about $1.5 billion annually.
The company also pointed to a decline in sales of about $1.5 billion annually due to the loss of market exclusivity for certain products. Some blockbuster drugs, such as the company’s pneumonia vaccine Prevnar, face more competition from rivals.
Pfizer CFO Dave Denton in December told investors and the company’s guidance for 2026 includes “price compression and margin compression” as it plans to deliver “deep discounts” in its Medicaid business. important drug price deal collided with President Donald Trump.
Under the agreement, Pfizer agreed to sell its existing drugs to Medicaid patients at the lowest prices offered in other developed countries and to guarantee the same “most favorable country” prices for its new drugs for Medicare, Medicaid and commercial payers. In return, the company will be exempted from tariffs for three years.
Pfizer’s Xeljanz and Xeljanz XR, treatments for rheumatoid arthritis and other inflammatory conditions, was selected in January for the third round of Medicare drug price negotiations. The agreed new prices will come into effect in 2028.