Pfizer reaffirms guidance after strong Q1

(Sharecast News) - Pfizer reported stronger-than-expected first-quarter results on Tuesday and reaffirmed its full-year guidance, as growth from older blockbusters and recently launched or acquired medicines offset another sharp fall in Covid product sales.

The US drugmaker said revenue rose 5% year on year to $14.45bn, ahead of Wall Street expectations of $13.79bn cited by CNBC and Reuters.

On an operational basis, revenue increased 2%, while revenue excluding Covid vaccine Comirnaty and antiviral Paxlovid rose 7%.

Adjusted earnings were 75 cents per share, above analyst expectations of 72 cents to 73 cents, while reported net income fell 9% to $2.69bn, or 47 cents per share.

Pfizer reaffirmed its 2026 guidance for revenue of $59.5bn to $62.5bn and adjusted diluted earnings per share of $2.80 to $3.00.

The company said its first-quarter performance reflected solid global commercial execution and ongoing efficiency measures.

"We're off to a strong start in 2026, and it reinforces our confidence that we will successfully navigate this defining period for Pfizer," said Albert Bourla, chairman and chief executive.

"Our research and development pipeline is advancing on multiple fronts - with positive phase three readouts and encouraging mid-stage results building meaningful momentum - and I'm particularly encouraged by what we're seeing in oncology and obesity, two areas where I believe Pfizer is positioned to lead."

David Denton, chief financial officer, said the results were driven by "solid commercial performance globally" and operational efficiency.

"This quarter, I'm particularly pleased with the 22% year-over-year operational revenue growth from our launched and acquired products.

"Today, we are reaffirming our full-year 2026 financial guidance."

Product performance was led by Padcev, Eliquis, oncology biosimilars, Nurtec and Lorbrena.

Padcev revenue rose 39% operationally, driven by market share gains in advanced urothelial cancer and launch momentum in muscle-invasive bladder cancer.

Eliquis revenue grew 8% on higher global demand, partly offset by generic competition and price erosion in some international markets.

Oncology biosimilars rose 52%, Nurtec ODT/Vydura grew 41%, and Lorbrena increased 32%.

Those gains helped offset further weakness in Pfizer's Covid franchise.

Comirnaty revenue fell 59% operationally, reflecting lower international deliveries, a smaller returns provision benefit and lower US utilisation after a narrower vaccination recommendation.

Paxlovid revenue declined 63%, driven by lower Covid infections and reduced government purchases in some international markets.

Bloomberg said Comirnaty sales of $232m were well below analyst expectations of $421m, while Paxlovid also missed forecasts.

The company highlighted progress in its pipeline, including positive phase three data for Elrexfio in relapsed or refractory multiple myeloma, Talzenna in metastatic hormone-sensitive prostate cancer and Padcev in muscle-invasive bladder cancer.

It also cited encouraging mid-stage data for atirmociclib in breast cancer and tilrekimig in atopic dermatitis, with the latter expected to move into a pivotal study this year.

Pfizer said it remained on track to start about 20 key pivotal studies in 2026.

The company said it was also expanding in obesity, including through its $10bn acquisition of Metsera and a separate commercial collaboration with Sciwind Biosciences for ecnoglutide in China, where the GLP-1 treatment was approved in March and launched in April for long-term weight management.

Costs were mixed in the quarter.

Reported selling, informational and administrative expenses fell 4% operationally, reflecting more targeted marketing and productivity improvements, while R&D expenses rose 12% operationally because of higher spending on oncology and obesity candidates.

Adjusted cost of sales increased to 23.6% of revenue from 18.9%, partly because of the non-recurrence of a favourable royalty estimate revision in the prior year.

Pfizer returned $2.4bn to shareholders through dividends in the quarter and invested $2.5bn in internal research and development.

It did not repurchase shares and said its 2026 guidance did not assume any buybacks, as it continued to focus on deleveraging after recent acquisitions.

The company also completed its exit from its 11.7% stake in ViiV Healthcare in March, receiving $1.875bn in proceeds, to be accounted for in the second quarter.

It said recent settlements with generic manufacturers over Vyndamax patents extended the effective US patent expiry date for the drug to 1 June 2031, subject to other litigation.

Pfizer said that meant it now expected Vyndamax revenue to remain relatively stable from 2028 through mid-2031, rather than decline significantly from 2029 as previously anticipated.

At 0819 EDT (1319 BST), shares in Pfizer were up 1.14% in premarket trading in New York at $26.63.

Reporting by Josh White for Sharecast.com.