Pfizer's Q1 Performance: A Detailed Look
Pfizer (https://www.cnbc.com/quotes/PFE/) announced its first-quarter earnings on Tuesday, exceeding Wall Street expectations for both earnings and revenue. The pharmaceutical giant also reaffirmed its financial outlook for 2026, fueled by the strong performance of recently launched and acquired products. This positive momentum comes as the company navigates a decline in sales of its COVID-19 vaccine and antiviral treatment, Paxlovid.
Key Financial Highlights:
- Earnings per share (EPS): 75 cents (adjusted) vs. 72 cents expected
- Revenue: $14.45 billion vs. $13.79 billion expected
The company's success is attributed to robust demand for established drugs like Eliquis, a blood thinner, which helped offset the downturn in COVID-related revenue. Pfizer is also strategically investing in its pipeline, including a recent $10 billion acquisition of obesity biotech Metsera, and anticipates crucial data releases this year for experimental treatments, such as a targeted drug for lung cancer.
Revenue Breakdown:
Pfizer reported a 5% year-over-year increase in revenue, reaching $14.45 billion. Net income for the quarter was $2.69 billion, or 47 cents per share, compared to $2.97 billion, or 52 cents per share, in the same period last year. Adjusted EPS stood at 75 cents.
2026 Outlook:
Pfizer maintains its 2026 outlook, projecting adjusted profit between $2.80 and $3 per share, and total revenue between $59.5 billion and $62.5 billion. This sales forecast is expected to be relatively flat or slightly down compared to the $62.6 billion revenue recorded in 2025.
Navigating Declining COVID Sales:
The company anticipates a $1.5 billion year-over-year decline in sales for its COVID vaccine and Paxlovid, totaling $5 billion. Additionally, Pfizer expects a $1.5 billion decrease in sales due to the loss of market exclusivity for certain products, facing increased competition from generic alternatives.
Recent Developments:
Pfizer recently secured extended U.S. patent protection for Vyndamax, a treatment for a rare heart condition, through settlement agreements with generic drug manufacturers, extending protection until June 1, 2031.
Offsetting COVID Decline with Growth:
While COVID vaccine revenue fell 59% to $232 million and Paxlovid sales dropped 62% to $186 million (below analyst estimates of $445.9 million and $286.2 million respectively), other products showed strong performance.
Eliquis sales increased by 13% to $2.17 billion, exceeding expectations of $1.96 billion. Padcev, a targeted cancer drug, saw a 39% increase in revenue to $591 million, surpassing the estimated $542.3 million. The RSV vaccine generated $180 million in sales, a 37% increase year-over-year, also exceeding estimates of $145.1 million. Overall, sales of recently launched and acquired products grew by 22% operationally.
