Pfizer (NYSE: PFE) shares edged higher on Friday, closing at an unofficial $25.04, up 0.5% on the day and 2.0% for the week. The modest rally comes as investors position ahead of the company's second-quarter earnings release, scheduled for Tuesday before the market opens.
The positive sentiment was fueled by a strong read-through from Bristol Myers Squibb (NYSE: BMY), Pfizer's partner on the blockbuster anticoagulant Eliquis. Bristol Myers reported a 22% year-over-year surge in Eliquis sales for its second quarter, reaching $4.48 billion, and raised its full-year 2026 growth guidance for the drug to 20%-25%, up from the prior 10%-15% range. This upbeat update has alleviated some near-term demand concerns for Eliquis, which is a significant revenue contributor for Pfizer.
In the first quarter of 2026, Pfizer recognized $2.166 billion in revenue from Eliquis, an 8% operational increase, representing 15% of its total revenue. While the accounting methods differ between the two companies—Pfizer's figure includes alliance and product revenue—the robust performance reported by Bristol Myers bodes well for Pfizer's upcoming results.
Wall Street analysts have set preliminary consensus estimates for Pfizer's Q2 at approximately $14.4 billion in revenue and $0.68 in adjusted earnings per share (EPS). This would represent a decline from the year-ago quarter, when Pfizer posted revenue of $14.653 billion and adjusted EPS of $0.78. The lowered bar reflects ongoing challenges, including the loss of exclusivity for some products and a projected $1.5 billion sales drag in 2026.
Despite the soft top-line expectations, the company's full-year guidance remains a key focus. Pfizer reaffirmed its 2026 revenue outlook of $59.5 billion to $62.5 billion and adjusted EPS of $2.80 to $3.00. To hit the midpoint, the company will need to deliver stronger second-half performance, highlighting the importance of operational execution and potential guidance raises.
Investors are also keeping an eye on Pfizer's pipeline and recent regulatory developments. The company reported positive results from two pivotal Phase 3 trials for LITFULO (ritlecitinib) in vitiligo, meeting co-primary endpoints at week 52. Additionally, Pfizer and BioNTech (NASDAQ: BNTX) secured European authorization for their XFG-adapted COVID-19 vaccine, with shipments set to begin soon.
At Friday's close, Pfizer's indicated dividend yield stood at 6.9%, based on an annualized dividend of $1.72 per share. The stock trades at roughly 8.6 times the midpoint of the company's 2026 adjusted EPS guidance, a valuation that some analysts view as attractive given the yield support.
However, risks remain. The Eliquis read-through is not a one-to-one translation, and Pfizer faces its own exclusivity-related headwinds. The company has also guided to no share repurchases in 2026, meaning the equity case rests heavily on operational performance.
Tuesday's earnings call, scheduled for 10:00 a.m. EDT, will be closely watched for updates on Eliquis, Padcev, Vyndaqel, and cost management. A guidance raise could shift the narrative, while a routine beat may not be enough to move the stock significantly.
