PFE · Pfizer Inc.

Pfizer's first-quarter 2026 results reflect solid commercial execution, with total revenues of $14.5 billion, up 5% as reported and 2% operationally year-over-year. Excluding COVID-19 products Comirnaty and Paxlovid, operational revenue growth accelerated to 7%, driven by a 22% operational increase in launched and acquired products. Key growth drivers included Padcev (+39% operational), Eliquis (+8%), Oncology biosimilars (+52%), Nurtec ODT/Vydura (+41%), and Lorbrena (+32%). These gains were partially offset by a 59% operational decline in Comirnaty and a 63% decline in Paxlovid due to lower demand and narrower vaccination recommendations.

On the cost side, GAAP cost of sales as a percentage of revenue increased to 24.6% from 20.7%, primarily due to the non-recurrence of a favorable royalty revision and unfavorable FX. GAAP R&D expenses rose 13% (12% operational) driven by increased spending in oncology and obesity programs. GAAP SI&A expenses declined 2% (4% operational) on targeted investments and productivity improvements. GAAP net income fell 9% to $2.687 billion, and GAAP diluted EPS declined 10% to $0.47. Adjusted diluted EPS declined 18% to $0.75, reflecting lower COVID revenues and higher costs.

Management reaffirmed all components of full-year 2026 guidance, including revenue of $59.5-$62.5 billion and adjusted diluted EPS of $2.80-$3.00. The company also highlighted a robust pipeline with positive Phase 3 results for Braftovi, Elrexfio, and Padcev, and regulatory milestones for Hympavzi and Padcev. Capital allocation included $2.5 billion in internal R&D, $110 million in business development, and $2.4 billion in dividends ($0.43 per share). No share repurchases are planned for 2026, with $3.3 billion remaining under authorization.