Pfizer has told investors it expects a stronger year than it previously predicted, as sales of newer medicines helped offset a collapse in demand for its COVID-19 products. The drugmaker beat Wall Street estimates for the third quarter on Tuesday and lifted both its revenue and profit forecasts for 2026.
The quarter in numbers
Revenue was $16.58 billion, compared with $16.65 billion a year earlier, so it was almost unchanged. That still topped forecasts. Analysts polled by LSEG had expected sales of $15.87 billion and a profit of 73 cents per share, while Pfizer reported 87 cents per share excluding certain items. Adjusted profit was flat from a year earlier, but reported net income fell 8% to $3.24 billion.
A higher outlook
Pfizer raised its 2026 sales guidance to between $62 billion and $64 billion, from $60.5 billion to $62.5 billion, and lifted adjusted earnings guidance to $2.95 to $3.05 per share from $2.80 to $3.00. Both new midpoints sit slightly above what analysts had expected.
Chief executive Albert Bourla described the period as another strong quarter, citing commercial momentum and disciplined execution. He also pointed to progress in the company’s obesity programme and recent milestones in oncology, immunology and vaccines.
Growth outside COVID
The core story is a changing product mix. Excluding Comirnaty and Paxlovid, sales rose 7% on an operational basis, while launched and acquired products grew 32%. Those newer products generated $3.8 billion in revenue. A Globe and Mail report said the drugmaker raised guidance on stronger Eliquis sales.
The drag from the pandemic era continues to deepen. Paxlovid sales fell 63% excluding currency effects, mainly reflecting fewer COVID-19 infections, and Comirnaty revenue dropped 29%. The decline shows how far Pfizer has moved from its pandemic peak, and why the company is leaning heavily on new drugs.
Spending on the pipeline
Pfizer is putting money behind its next phase of growth. On the earnings call, it said it expects to spend $10.8 billion to $11.8 billion on research and development this year, focused particularly on oncology and obesity.
Obesity is the most closely watched area. An earlier look at the programme noted that a monthly candidate, berobenatide, delivered placebo-corrected weight loss of up to 12.3% in a mid-stage trial, and Pfizer plans 10 Phase III studies. That is a crowded field dominated by established rivals, so investors want evidence that Pfizer can compete.
Leadership steady
The company also confirmed a finance leadership change. Interim chief financial officer Cecile Guegan has been formally confirmed in the role effective November 1.
Why the shares barely moved
Despite the beat, the stock stayed close to flat. Shares were about 1% lower at $30.37 at one point in the session. One report noted that the shares were already up 23% year to date. Another said investors were weighing the beat against longer-term concerns about patent expirations and pricing pressure.
That caution is understandable. Pfizer faces expiring patents on several major medicines over the coming years, and drug pricing remains a political issue in Washington. A strong quarter does not remove those risks, and investors may want proof that the new portfolio can replace lost revenue at scale.
What to watch
Three developments will shape the story over the next year. The first is whether launched products keep growing at a pace near 30%. The second is how its obesity candidates perform in later-stage trials. The third is how aggressively Pfizer cuts costs, a programme it has said will deliver billions in savings.
For now, the company has shown that it can grow outside COVID and still meet its financial promises. The market’s muted response suggests investors will wait for the bigger tests still ahead.
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