Pfizer Inc. (PFE.US) alleviates profit pressure: Strong demand for the old drug portfolio in Q2 prompts an upward revision of the revenue guidance for 2026, along with an additional $2.5 billion in cost reductions.

On Tuesday, before the U.S. stock market opened, Pfizer Inc. (PFE.US) announced its second-quarter financial results for 2026. Amidst a continued decline in revenue from COVID-19 products, the company achieved better-than-expected revenue growth thanks to strong performances from non-COVID core products like Eliquis and Padcev, and raised the lower end of its full-year revenue guidance. However, a $4.3 billion non-cash impairment of intangible assets led to a net loss according to GAAP standards, with shares inching up about 0.52% in pre-market trading to $25.16. Core Data: Non-COVID Products Grow Against the Trend by 18%, Eliquis Exceeds Expectations Pfizer Inc.'s second-quarter revenue was $15.03 billion, a 3% increase year-over-year, significantly exceeding market expectations of $14.41 billion. Adjusted earnings per share were $0.77, also markedly higher than the analysts' expectation of $0.68. However, on a GAAP basis, the company reported a net loss of $248 million, or a loss of $0.04 per share, compared to a net profit of $2.91 billion in the same period last year. The loss was mainly due to the $4.3 billion impairment of non-cash intangible assets. Non-COVID products were the core highlight of this financial report. Excluding Comirnaty and Paxlovid, Pfizer Inc.'s operational revenue increased by 5%; the operational growth of the launched and acquired product portfolio was 18%. Among these, sales of the anticoagulant Eliquis reached $2.43 billion, up 19%, far exceeding analysts' expectations of $2.08 billion. Padcev saw operational growth of 23%, Lorbrena grew by 37%, and the Vyndaqel family increased by 8%. The strong performance of the launched and acquired products provided approximately $1.5 billion of upside potential for the full-year guidance. However, COVID-19 products continued to drag down performance. Paxlovid's operational revenue plummeted by 95%, while Comirnaty fell by 34%. Pfizer Inc. lowered its full-year revenue expectation for COVID-19 products from approximately $5 billion to about $4 billion. Full-Year Guidance: Lower Revenue Limit Raised, Profit Expectation Maintained Based on the better-than-expected performance of non-COVID products, Pfizer Inc. raised its full-year revenue guidance for 2026 from the previous range of $59.5 billion to $62.5 billion to a new range of $60.5 billion to $62.5 billion. The midpoint of the new guidance is an increase of $500 million from before. The company also reiterated its full-year adjusted earnings per share guidance of $2.80 to $3.00, which aligns closely with the market expectation of $2.95. This guidance takes into account the approximately $0.10 adverse impact from the INNOVENT BIO transaction. Cost Reduction Plans Expanded: Additional $2.5 Billion Savings from 2027 to 2029 Pfizer Inc. announced an expansion of its cost reduction plan, expecting to achieve an additional net cost saving of $2.5 billion between 2027 and 2029. Among this, $1 billion will come from ongoing cost adjustment programs, and $1.5 billion will come from the next phase of manufacturing optimization plans. In conjunction with the previously announced $5.7 billion cost-saving target, Pfizer Inc. anticipates total net cost savings of about $6.7 billion by 2029. The company stated that as of August 4, $3.3 billion remains in its stock repurchase authorization, but no stock repurchases are expected to take place in 2026. CFO Changes Pfizer Inc. CEO Albert Bourla stated in the financial report, Pfizer Inc. has had another strong quarter, delivering on our financial commitments and advancing our strategies. Our launched and acquired products have performed well, our obesity program is progressing with meaningful momentum, and our oncology portfolio remains our strength." However, market concerns over Pfizer Inc.s R&D pipeline persist. In June, an experimental antibody-drug conjugate failed to improve survival rates in late-stage lung cancer patients. This drug is one of the core assets Pfizer Inc. acquired from Seagen for $43 billion at the end of 2023. BMO Capital Markets analysts pointed out that ongoing skepticism surrounding the value of the Seagen acquisition indicates that Pfizer Inc. "still needs to further clarify the scope and timing of its oncology business opportunities." Meanwhile, Pfizer Inc. is undergoing significant changes within its financial leadership. CFO Dave Denton will leave to join NIKE, Inc. Class B on August 15. Senior financial executive Cecile Guegan, who has served the company for over 20 years, will take over as interim CFO the following day. The company is conducting both internal and external searches for a permanent successor. Pfizer Inc. expects to return to strong growth after key patents expire in 2028. Bourla stated during the call that the companys launched and acquired products are performing well... Our obesity projects are progressing steadily. However, with the patent cliff approaching, the continued shrinkage of COVID revenues, and uncertainties regarding key late-stage pipeline data, whether this pharmaceutical giant can maintain its hard-earned growth momentum throughout the remainder of 2026 remains a focal point of market attention.