Pfizer Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 4 August 2026: press release. Guidance figures: 2 raised, 2 lowered, 1 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue up 3%, operational 1%: Second-quarter revenues were $15,034 million, up 3% reported and 1% operationally. Foreign exchange added $217 million. Revenues of launched and acquired products grew 18% operationally. Source
• Reported loss driven by impairments: The company reported a loss of $0.04 per diluted share, against EPS of $0.51 a year earlier. The result reflects $4.3 billion of non-cash intangible asset impairments. Source
• Adjusted EPS flat, half-year down: Adjusted diluted EPS was $0.77 against $0.78, and adjusted income was $4,440 million against $4,434 million. Six-month adjusted diluted EPS was $1.52, down 10% from $1.69. Source
• Growth excluding COVID products: Excluding Comirnaty and Paxlovid, operational revenue grew 5%. Management named Eliquis, Padcev, the Vyndaqel family and Lorbrena as contributors. Source
• Padcev approved for early bladder cancer: The FDA approved Padcev with pembrolizumab for muscle-invasive bladder cancer regardless of cisplatin eligibility, based on the Phase 3 EV-304 trial. Padcev revenues rose 23% operationally. Source
• Impairments of $4.3 billion: Intangible asset impairments were $4.3 billion, including $3.8 billion of IPR&D for sigvotatug vedotin and $525 million of Oxbryta developed technology rights. Source
• Sigvotatug vedotin did not reach OS: The SigVie-002 study did not show a statistically significant overall survival gain over docetaxel. A more favorable trend appeared in patients with one prior line of therapy. Source

“Pfizer had another strong quarter, delivering on our financial commitments and advancing our strategy.”

Dr. Albert Bourla, Chairman and CEO of Pfizer

Guidance

What changed from last quarter

• Guidance raised: Full-year revenue guidance midpoint raised by $500 million, to a range of $60.5 to $62.5 billion. Source
• Guidance lowered: Revenue expectation for COVID-19 products reduced to about $4 billion from about $5 billion. Source
• Guidance kept: Full-year Adjusted diluted EPS guidance of $2.80 to $3.00 was reaffirmed. Source
• New: The Innovent Biologics licensing and collaboration transaction closed on July 10, 2026. Source
• New: Additional net cost savings of $1.0 billion announced under the cost realignment program, with total savings of about $6.7 billion through 2029. Source
• New: Next phase of the cost of goods sold program announced, with about $1.5 billion of additional savings through 2029. Source
• Ended: Dave Denton will step down as Chief Financial Officer and leave the company on August 15, 2026. Source
• New: Cecile Guegan named Interim Chief Financial Officer, effective August 16, 2026, while a permanent search runs. Source

Results and growth drivers

• Revenue up 3%, operational 1%: Second-quarter revenues were $15,034 million, up 3% reported and 1% operationally. Foreign exchange added $217 million. Revenues of launched and acquired products grew 18% operationally. Source
• Reported loss driven by impairments: The company reported a loss of $0.04 per diluted share, against EPS of $0.51 a year earlier. The result reflects $4.3 billion of non-cash intangible asset impairments. Source
• Adjusted EPS flat, half-year down: Adjusted diluted EPS was $0.77 against $0.78, and adjusted income was $4,440 million against $4,434 million. Six-month adjusted diluted EPS was $1.52, down 10% from $1.69. Source
• Growth excluding COVID products: Excluding Comirnaty and Paxlovid, operational revenue grew 5%. Management named Eliquis, Padcev, the Vyndaqel family and Lorbrena as contributors. Source

Segments and regions

• Biopharma up 2%, CentreOne up 7%: Global Biopharmaceuticals Business revenues were $14,661 million, up 2% reported and 1% operationally. Pfizer CentreOne revenues were $373 million, up 7% reported and 5% operationally. Source
• U.S. flat, international up 7%: U.S. revenues were $8,857 million, flat year on year. International revenues were $6,177 million, up 7% reported and 3% operationally. Source
• Hospital and Biosimilars flat: Hospital and Biosimilars revenues were $1,640 million, flat reported and down 2% operationally. Oncology biosimilars revenues rose 2% reported. Source
• Specialty Care and Oncology rose: Specialty Care revenues rose 9% to $3,353 million and Oncology rose 3% to $4,165 million. Primary Care fell 1% to $5,503 million. Source

“Our updated full-year 2026 guidance reflects the continued strength of and confidence in our business.”

Cecile Guegan, Incoming Interim CFO and EVP of Pfizer

Products and customers

• Eliquis revenue up 19%: Eliquis revenues rose 19% operationally, driven mainly by higher U.S. net price from lower rebates and channel mix, and by higher global demand. Generic entry and international price erosion partly offset. Source
• Lorbrena revenue up 37%: Lorbrena revenues rose 37% operationally on higher patient share in first-line ALK-positive metastatic non-small cell lung cancer, in the U.S., China and other markets. Source
• Padcev approved for early bladder cancer: The FDA approved Padcev with pembrolizumab for muscle-invasive bladder cancer regardless of cisplatin eligibility, based on the Phase 3 EV-304 trial. Padcev revenues rose 23% operationally. Source
• Vyndaqel family rose 8%: Vyndaqel family revenues rose 8% operationally on international diagnosis uptake and access. U.S. market expansion was partly offset by net price erosion from new payer contracts. Source

Costs, margins and pricing

• Cost of sales share rose 1.4 points: Reported cost of sales was 27.2% of revenues. The rise came from sales mix and higher amortization of acquired inventory step-up, primarily tied to the Oxbryta impairment. Source
• Adjusted cost of sales ratio rose: Adjusted cost of sales was $3,656 million, or 24.3% of revenues, against 23.9% a year earlier. Source
• Adjusted SI&A eased, reported flat: Reported SI&A was flat at $3,411 million. Adjusted SI&A fell 1% operationally to $3,344 million, with lower corporate spending partly offset by cost realignment implementation costs. Source
• R&D spend up 13% as anticipated: Reported R&D expenses rose 13% operationally to $2,809 million, driven by oncology and obesity candidates. Management described the increase as anticipated. Source
• Cost program one-time costs: Pfizer expects one-time costs to achieve the additional savings to be incurred through 2029, totaling about $2.0 billion, mainly cash spending on digital enablement, implementation and severance. Source
• Reported tax rate 62.4% on loss: The reported effective tax rate was 62.4% on a pre-tax loss, reflecting a tax benefit tied to changes in jurisdictional mix from intangible asset impairments. The adjusted rate was 14.1%. Source

“I am confident we will create substantial future value for patients and shareholders.”

Dr. Albert Bourla, Chairman and CEO of Pfizer

COVID-19 products and demand

• Paxlovid revenue down 95%: Paxlovid revenues fell 95% operationally, driven by lower COVID-19 infections in the U.S. and international markets and lower government purchases in some international markets. Source
• Comirnaty revenue down 34%: Comirnaty revenues fell 34% operationally, reflecting a smaller favorable returns-provision adjustment and lower U.S. utilization after a narrower vaccination recommendation. Source
• XFG vaccine approved in Europe: The European Commission granted marketing authorization for the 2026-2027 COVID-19 vaccine formula targeting the XFG variant. Manufacturing started at risk ahead of the respiratory season. Source

Impairments and charges

• Impairments of $4.3 billion: Intangible asset impairments were $4.3 billion, including $3.8 billion of IPR&D for sigvotatug vedotin and $525 million of Oxbryta developed technology rights. Source
• ViiV stake sale gain: A net gain of $1.87 billion from the sale of the previous ViiV Healthcare investment partly offset the impairments and other deductions in the quarter. Source

Capital, cash and shareholder returns

• Dividends of $4.9 billion paid: Cash dividends for the first six months of 2026 totaled $4.9 billion, or $0.86 per share. No share repurchases had been completed in 2026 as of the release date. Source
• Internal R&D investment $5.3 billion: Six-month reinvestment included $5.3 billion in internal research and development projects and about $170 million in business development transactions. Source
• Repurchase authority left at $3.3 billion: The remaining share repurchase authorization was $3.3 billion as of August 4, 2026. Management said the company expects to continue to de-lever over the longer term in a prudent manner. Source
• Capital framework has three pillars: The framework covers reinvesting in the business, maintaining and over time growing the dividend, and in the future resuming share repurchases after de-levering. Source

Strategy, pipeline and deals

• Innovent deal covers cancer medicines: The Innovent Biologics agreement covers 12 early-stage and de novo cancer medicines. Four programs will be co-developed and co-commercialized by the two companies. Source
• Berobenatide monthly obesity data: Phase 2b VESPER data for berobenatide, a potential first-in-class monthly GLP-1 receptor agonist, supported proof of concept with low gastrointestinal adverse events. Source
• Sigvotatug vedotin did not reach OS: The SigVie-002 study did not show a statistically significant overall survival gain over docetaxel. A more favorable trend appeared in patients with one prior line of therapy. Source
• Litfulo positive in vitiligo: Two Phase 3 trials of Litfulo in nonsegmental vitiligo met co-primary endpoints at 50 and 100 milligram doses. Pfizer intends to submit global filings for adults. Source
• Talzenna TALAPRO-3 efficacy: TALAPRO-3 showed a 52% reduction in risk of radiographic progression or death with Talzenna plus Xtandi in HRR gene-mutated mCSPC. Source
• Braftovi cohort PFS gain: Cohort 3 of BREAKWATER showed a 56% reduction in risk of progression or death for Braftovi with cetuximab and FOLFIRI. Updated overall survival showed a 44% reduction in risk of death. Source

Coming up, as management said on 4 August 2026

• Talzenna FDA decision in Q4: The FDA accepted the Talzenna plus Xtandi supplemental application for priority review, with an action date in the last quarter of 2026. Source
• Litfulo global filings planned: Pfizer intends to submit global regulatory filings for Litfulo in nonsegmental vitiligo for adults. Source
• 35-valent vaccine clinical entry: A fifth generation 35-valent adult pneumococcal candidate is expected to enter clinical development by end of 2026, pending regulatory alignment. Source

Figures management reported

Risks management discussed

• Operational: Cost program estimates are subject to assumptions, and actual costs, savings and timing may differ from current expectations. Source
• Regulatory: After July 2026 FDA discussions on the data, the company determined there is no viable U.S. pathway to return Oxbryta to market. Source
• Regulatory: Legal charges for certain product liability and other legal expenses were $867 million in the quarter and $1.0 billion for six months. Source
• Operational: A search for a permanent CFO is under way while the company works with an interim CFO. Source

Earlier plans management reported on

• On track: The company said it remains on track to deliver about $5.7 billion of net cost savings by end of 2026. Source
• On track: The company said it remains on track to deliver about $1.5 billion of first-phase net savings by end of 2027. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.