Pfizer (PFE) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $14.5 billion, up 5% year-over-year, with operational growth of 2% and strong contributions from oncology, migraine, Eliquis, Padcev, and biosimilars, partially offset by declines in COVID-19 product revenues.

• Adjusted diluted EPS was $0.75 and reported diluted EPS was $0.47, both above expectations, though adjusted EPS declined 19% year-over-year due to higher R&D spend and tax rate.

• Achieved 22% operational growth in launched and acquired products, with significant contributions from oncology and migraine portfolios.

• Advanced key R&D milestones, including three positive phase III readouts and progress on approximately 20 pivotal study starts planned for the year.

• Legal settlements, notably for VYNDAMAX and a favorable Belgium court ruling on COMIRNATY, improve post-2028 growth and cash flow outlook.

Financial highlights

• Q1 2026 revenues were $14.5 billion, up 2% operationally; excluding COVID products, underlying business grew 7%.

• Adjusted diluted EPS was $0.75, reported diluted EPS $0.47; adjusted income (non-GAAP) was $4.3 billion.

• Launched and acquired products generated $3.1 billion, growing 22% operationally.

• Adjusted gross margin was approximately 76%, with higher accrued royalty expense dampening margin versus prior year.

• Adjusted SI&A expenses decreased 5% operationally to $2.9 billion; adjusted R&D expenses increased 11% to $2.4 billion.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: revenues of $59.5–$62.5 billion and adjusted diluted EPS of $2.80–$3.00.

• Expects high single-digit five-year revenue CAGR starting in 2029, supported by pipeline and delayed LOE for VYNDAMAX.

• Guidance assumes no share repurchases in 2026 and anticipates a $1.5 billion revenue impact from generic/biosimilar competition.

• Ongoing focus on cost management and productivity to deliver $7.2 billion in net cost savings by end of 2026.

• Anticipates $600 million in annual cost synergies from the Metsera acquisition by end of 2026.