Pfizer’s (PFE) Q4 2025 earnings

Pfizer On Tuesday, it reported fourth-quarter results that beat estimates even amid waning demand for Covid products, while reaffirming its modest 2026 guidance that rattled investors in December.

The pharmaceutical giant is eyeing long-term investments in its pipeline, including its $10 billion acquisition of obesity biotech Metsera, to counter declining sales of Covid products and declines in older drugs. Pfizer moved to show the promise of this investment on Tuesday, when it also reported mid-stage data showing that Metsera’s obesity shot can be taken once a month and lead to strong weight loss.

Additionally, Pfizer is on track to reduce costs by about $7.7 billion by the end of 2027 as part of two separate initiatives.

Here’s what the company reported for the fourth quarter compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: 66 cents were revised versus 57 cents expected
• profit: $17.56 billion versus $16.95 billion expected

Pfizer reported revenue of $17.56 billion for the fourth quarter, down about 1% from the same period last year. This is largely due to lower demand for the Covid vaccine and paxlovid, an antiviral tablet.

The company had a net loss of $1.65 billion, or 29 cents per share. That compares to net income of $410 million, or 7 cents per share, during the same period last year.

Excluding certain items, including restructuring charges and costs associated with intangible assets, the company reported earnings per share of 66 cents for the quarter.

Pfizer expects 2026 adjusted earnings to be between $2.80 and $3 per share, and total revenue to reach $59.5 billion to $62.5 billion. These sales will be largely flat compared to 2025 revenues.

Pfizer previously said the lackluster revenue outlook comes in part from lower sales of its Covid vaccine and antiviral pill Baxlovid, which it expects to fall by about $1.5 billion year over year to $5 billion.

The company also indicated another expected decline in sales of about $1.5 billion on an annual basis due to some products losing their market exclusivity. Some blockbuster drugs, such as the company’s Prevnar pneumonia vaccine, face greater competition from rivals.

In December, Pfizer CFO Dave Denton told investors that there was also “pricing pressure and margin pressure built into” the company’s 2026 guidance as it plans to offer “greater discounts” in its Medicaid business as part of a landmark drug pricing deal struck with President Donald Trump.

Under this agreement, Pfizer agreed to sell its existing drugs to Medicaid patients at the lowest price offered in other developed countries and guarantee the same “most favored nation” price on its new drugs to Medicare, Medicaid, and commercial payers. In return, the company will receive an exemption from customs duties for three years.

Pfizer’s Xeljanz and Xeljanz XR, which treat rheumatoid arthritis and other inflammatory conditions, were selected in January for the third round of Medicare drug price negotiations. The new negotiated rates will take effect in 2028.