Pfizer Inc.

Pfizer reported second-quarter 2026 revenue of $15 billion, up 1% operationally year over year, and adjusted diluted EPS of $0.77. Excluding COVID products, underlying revenue grew 5% operationally; launched and acquired products produced $3.2 billion in revenue and grew 18% operationally, or 27% excluding one-time 2025 items. Adjusted gross margin was 76%, adjusted operating margin was 35%, and adjusted operating expenses were $6.1 billion, up 4% operationally. For full year 2026, Pfizer raised revenue guidance to $60.5 billion-$62.5 billion from $59.5 billion-$60.5 billion and reaffirmed adjusted diluted EPS guidance of $2.80-$3.00, which now includes about a $0.10 unfavorable impact from the Innovent Biologics transaction. Management said the guidance assumes about $4 billion of COVID-19 revenue versus $5 billion previously, expects adjusted gross margin in the mid-70s range, and continues to anticipate low COVID incidence could limit Paxlovid use.

Albert Bourla framed the quarter as another strong execution period, emphasizing that Pfizer again exceeded expectations on revenue and adjusted EPS. He stressed that the company is balancing near-term commercial strength with long-term growth investments in R&D, AI, and business development, and said Pfizer is building a foundation for high single-digit revenue growth later in the decade. His tone was confident and defensive on the dividend and strategy, repeatedly highlighting execution, discipline, and the value created by recent transactions.

Cecile Guegan highlighted second-quarter revenue of $15 billion and adjusted diluted EPS of $0.77, noting both beat expectations despite lower-than-expected COVID revenue. She said adjusted gross margin was 76% and adjusted operating margin was 35%, supported by product mix and cost control, while adjusted SG&A fell 3% operationally and adjusted R&D rose 12% operationally due to oncology and obesity spending. She also detailed cash and balance-sheet items: operating cash flow was $3.45 billion, leverage was 2.7x, Pfizer made a final TCJA repatriation tax payment of about $2.6 billion, and the ViiV exit brought about $1.65 billion in net cash proceeds. On capital allocation, she said Pfizer invested $5.5 billion in internal and external R&D in the first half and returned $4.9 billion to shareholders via dividends, while still keeping about $6 billion of business development capacity after the Innovent deal. She also said Pfizer expects about $9.7 billion of total net savings through 2029 from expanded productivity and manufacturing programs.

Analysts focused on what drove the raised revenue guide, the growth outlook for Padcev and Eliquis, and whether COVID demand weakness could affect Pfizer’s longer-term growth algorithm. Management said the guidance increase was broad-based across the non-COVID portfolio, citing Eliquis plus launched and acquired products such as NURTEC and Padcev, and emphasized that low COVID infection rates were pressuring Paxlovid while vaccine revenue should be more seasonal and stable. On Padcev, management said the asset is becoming a major growth engine, with new patient share above 60% in la/mUC and upside from the expanded muscle-invasive bladder cancer indication and the new bladder-sparing study. Questions also centered on pipeline catalysts: Chris Boshoff said mevrometostat’s MEVPRO-1 is fully enrolled but events have not been reached, and Pfizer expects clinically meaningful benefit to support the trial; he also said the Dupixent comparison trial for Tilrekimig will be a true head-to-head powered for superiority.