Pfizer (NYSE:PFE) reported second-quarter 2026 revenue of $15 billion and adjusted diluted earnings per share of $0.77, with management saying both measures exceeded its internal expectations. Revenue increased 1% operationally from a year earlier, while revenue excluding COVID-19 products rose 5% operationally.
Chairman and CEO Albert Bourla said the quarter reflected continued commercial execution, cost discipline and progress across the company’s pipeline. He said Pfizer has exceeded consensus revenue expectations in nine of the past 10 quarters and adjusted EPS expectations in each of the past 10 quarters.
Non-COVID Products Drive Performance
Interim CFO Cecile Guégan said the guidance increase reflected stronger-than-expected performance from Pfizer’s non-COVID portfolio during the first half, including ELIQUIS, PADCEV, the VYNDAQEL family and Lorbrena. Launched and acquired products generated $3.2 billion in quarterly revenue and grew 18% operationally; excluding one-time items recorded in the second quarter of 2025, that growth rate was 27%.
Pfizer reduced its expected 2026 COVID-19 revenue to approximately $4 billion from $5 billion. Guégan said low infection levels have weighed primarily on PAXLOVID use, while much of COMIRNATY vaccine sales are expected later in the year during the vaccination season.
Bourla said COVID vaccine revenue should be less sensitive to changes in infection levels than PAXLOVID revenue, which is directly tied to infections. He added that Pfizer’s broader business had offset the COVID-related shortfall during a period of low infection rates.
Pfizer reported a 76% adjusted gross margin and a 35% adjusted operating margin for the quarter. Adjusted operating expenses increased 4% operationally, as a 12% increase in adjusted research and development expenses was partly offset by a 3% operational decline in adjusted selling, informational and administrative expenses.
On a reported basis, Pfizer posted a loss per share of $0.04. Guégan attributed the GAAP result primarily to $4.3 billion in non-cash intangible asset impairments tied to a recent phase III readout for SV in second-line-plus non-small cell lung cancer and, to a lesser extent, the removal of revenue projections for Vabryda following an FDA discussion.
Cost Savings and Capital Allocation
Pfizer expanded its cost-reduction plans, now expecting approximately $2.5 billion in additional net savings from 2027 through 2029. The company expects $1 billion in further savings from technology and simplification efforts aimed at reducing administrative expenses, plus approximately $1.5 billion from the next phase of its manufacturing optimization program.
Guégan said Pfizer now expects about $9.7 billion in total net savings through 2029 from its productivity and manufacturing initiatives. The company expects most of the previously anticipated $7.2 billion in savings to be realized by the end of 2026.
During the first half, Pfizer invested $5.5 billion in internal and external research and development and returned $4.9 billion to shareholders through dividends. Second-quarter operating cash flow was $3.45 billion, and leverage ended the period at 2.7 times.
Bourla said Pfizer expects to maintain its dividend through its upcoming loss-of-exclusivity period and eventually resume dividend growth. Guégan said the company’s business-development capacity was approximately $6 billion after the July close of its Innovent transaction, which included a $650 million upfront payment to be recorded in the third quarter.
Pipeline, Oncology and Obesity Programs
Pfizer highlighted continuing growth from products acquired through Seagen, Metsera and Biohaven. Bourla said the legacy Seagen portfolio grew 21% year over year in the United States after excluding a prior-year stocking benefit. NURTEC continued to lead the oral CGRP class in total prescriptions, according to the company.
Chief Scientific Officer Chris Boshoff said the FDA recently expanded PADCEV plus pembrolizumab for muscle-invasive bladder cancer regardless of cisplatin eligibility. The approval was based on phase III results showing a 35% reduction in the risk of death versus standard care, he said. Pfizer has also initiated a phase III study in bladder-sparing muscle-invasive bladder cancer.
In prostate cancer, Pfizer expects a first readout in the fourth quarter from the event-driven MEV-Pro1 study of mevrometostat plus XTANDI. Boshoff said the statistical plan targets an approximately 30% clinically meaningful benefit over standard care. Pfizer is running three pivotal mevrometostat studies.
For obesity, Pfizer is advancing berobenatide, an investigational ultra-long-acting GLP-1 receptor agonist that the company believes could become a monthly therapy. Boshoff cited phase II-B results showing placebo-corrected weight loss of up to 12.3% at week 28 with a 4.8 mg monthly dose in the VESPER-3 study. Pfizer targets a first approval beginning in 2028 and expects to advance 10 phase III studies during 2026.
The company also expects, over the next 12 months, five regulatory decisions, eight key data readouts and 19 pivotal-study starts. Bourla reiterated Pfizer’s goal of delivering risk-adjusted high-single-digit revenue growth from the end of 2028 through the end of 2033, supported by its in-line products and potential pipeline medicines and vaccines.
About Pfizer (NYSE:PFE)
Pfizer Inc (NYSE: PFE) is a multinational biopharmaceutical company headquartered in New York City. Founded in 1849 by Charles Pfizer and Charles Erhart, the company researches, develops, manufactures and commercializes a broad range of medicines and vaccines for human health. Its activities span discovery research, clinical development, regulatory affairs, manufacturing and global commercial distribution across multiple therapeutic areas.
Pfizer’s portfolio and pipeline cover oncology, immunology, cardiology, endocrinology, rare diseases, hospital acute care and anti-infectives, along with a substantial vaccine business.
