Pfizer reported fourth-quarter results that beat expectations, offering a steadier earnings picture as the company moves further away from the Covid-driven revenue surge of recent years.
While demand for its pandemic-era products continues to fade, the pharmaceutical group is refocusing its strategy around pipeline development, targeted acquisitions, and large-scale cost reductions.
The latest earnings update comes as Pfizer works through a multi-year reset.
With Covid vaccine and treatment sales declining and several older drugs facing tougher competition, the company is leaning on newer growth areas such as obesity therapies, alongside aggressive efficiency measures, to stabilise performance through the middle of the decade.
Fourth-quarter results beat forecasts
Pfizer posted adjusted earnings of 66 cents per share for the fourth quarter, exceeding analyst expectations of 57 cents, according to estimates compiled by LSEG.
Revenue reached $17.56 billion, ahead of the $16.95 billion forecast.
Despite the beat, revenue declined by about 1% from the same period a year earlier.
The fall was largely driven by weaker demand for the company’s Covid vaccine and Paxlovid, its antiviral pill used to treat the virus.
Pfizer reported a net loss of $1.65 billion, or 29 cents per share, compared with net income of $410 million, or 7 cents per share, a year earlier.
After excluding items such as restructuring charges and costs related to intangible assets, the company returned to positive adjusted earnings, highlighting the impact of ongoing cost controls.
Covid slowdown and patent pressure
Covid-related products remain a drag on Pfizer’s revenue mix. The company expects sales of its Covid vaccine and Paxlovid to fall by around $1.5 billion year over year, bringing combined revenue from those products to roughly $5 billion.
Pressure is also coming from drugs losing market exclusivity. Pfizer expects another roughly $1.5 billion year-over-year decline linked to competition and patent expirations.
Several established treatments, including its pneumonia vaccine Prevnar, are facing increased rivalry from competing products.
These trends are contributing to a flatter revenue profile over the next few years and have pushed Pfizer to place greater emphasis on pipeline execution and operating efficiency.
Obesity trial data support pipeline strategy
Pfizer highlighted progress in obesity treatments acquired through its $10 billion deal for Metsera, with trial data released on the same day as its earnings report.
In a mid-stage study, an experimental injection taken once a month delivered weight loss of up to 12.3% compared with a placebo at week 28 among patients with obesity or who are overweight.
When all participants were included, regardless of discontinuation, weight loss reached up to 10.5%.
The company said no plateau was observed after patients transitioned from weekly to monthly dosing, suggesting weight loss could continue as the study progresses through week 64.
The injection is an ultra-long-acting GLP-1 drug designed to remain active in the body for longer than existing treatments.
Pfizer is developing the therapy as both a weekly and once-monthly injection, as well as in combination with other treatments that target different gut hormones.
It plans to advance 10 phase three trials for the drug this year. Earlier mid-stage data released by Metsera last year showed weight loss of up to 14.1% after 28 weekly doses at the highest strength.
Guidance, pricing pressure, and savings drive
Pfizer reaffirmed its 2026 guidance, forecasting adjusted earnings of $2.80 to $3 per share and revenue of $59.5 billion to $62.5 billion.
That range implies largely flat sales compared with 2025.
The guidance reflects ongoing pricing and margin pressure tied to a landmark drug pricing agreement with President Donald Trump.
Under the deal, Pfizer agreed to sell its existing drugs to Medicaid patients at the lowest prices offered in other developed countries and apply most-favoured-nation pricing to new drugs across Medicare, Medicaid, and commercial payers.
In exchange, the company will receive a three-year exemption from tariffs.
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