Pfizer Inc. (NYSE: PFE) closed Friday at $26.76, marking a sixth consecutive session of gains and a 7.0% weekly advance. The stock's upward momentum was fueled by the company's latest quarterly results, which showed that growth in its core non-COVID franchises more than compensated for the continued decline in its pandemic-related products.
The pharmaceutical giant reported that four of its key non-COVID drug franchises generated an additional $797 million in revenue compared to the same period last year. This increase was 1.5 times greater than the combined decline in sales of Comirnaty (COVID vaccine) and Paxlovid (antiviral), which fell by $526 million. This shift underscores Pfizer's ability to transition away from its pandemic boom and rely on its broader portfolio.
Sales Bridge Highlights
The sales bridge reveals significant concentration in a few products. Eliquis, the blood thinner, contributed $422 million of the total increase, representing 53% of the four-franchise growth. Other contributors included Padcev (up $125 million), Lorbrena (up $103 million), and the Vyndaqel family (up $147 million). Combined, these four franchises grew 18.1% year-over-year.
Management's updated guidance reflects this trend. Non-COVID revenue projections were raised by $1.5 billion, while COVID-related forecasts were cut by $1 billion. The company now expects revenue of $61.5 billion for 2026, up $500 million from its previous midpoint. Adjusted earnings per share guidance remained unchanged at $2.90.
Earnings Beat and Impairments
Pfizer's second-quarter results surpassed Wall Street expectations. Revenue came in at $15.03 billion, about $630 million above consensus, and adjusted EPS of $0.77 beat by $0.09. However, reported EPS was a loss of $0.04, reflecting a $4.3 billion non-cash impairment charge, including $3.8 billion related to sigvotatug vedotin, an asset acquired through the Seagen acquisition.
CEO Albert Bourla emphasized the company's focus on efficiency and reinvestment in R&D. Adjusted research and development expenses rose 11% in the first half, while selling, informational, and administrative expenses declined 4%.
Dividend and Shareholder Returns
Pfizer distributed $4.9 billion in dividends during the first half and has no plans for share buybacks in 2026. At Friday's close, the indicated dividend yield was 6.43%, making the stock attractive to income investors. However, the company faces ongoing patent cliffs and pipeline uncertainties.
Analyst Views
Analysts remain divided on Pfizer's prospects. The average price target from 28 analysts is $28.64, implying just 7.0% upside from Friday's close. Guggenheim reiterated a Buy rating but cut its target to $31, while Bernstein and Goldman Sachs have more cautious stances. RBC Capital's Trung Huynh noted that the outperformance was broad-based but said investors would need significant catalysts in 2026 to view Pfizer as a growth company again.
Market Context
Pfizer's weekly gain of 7.0% outpaced the S&P 500's 3.6% rise, while major peers like Bristol Myers Squibb and Merck declined. The upcoming release of July CPI data on Wednesday, along with PPI and retail sales later in the week, could influence Treasury yields and, in turn, the attractiveness of Pfizer's dividend yield.
If inflation comes in hotter than expected, yields may rise, potentially making Pfizer's 6.43% yield less appealing. Conversely, a weaker reading could boost high-dividend stocks. As markets reopen Monday, investors will be watching these data points closely.
