Pfizer (NYSE:PFE) executives used the company’s fourth-quarter 2025 earnings call to highlight outperformance versus internal commitments, continued progress in recently launched and acquired brands, and a major research update tied to its obesity pipeline. Management also reaffirmed 2026 guidance while emphasizing that the company is entering a “pivotal” investment period ahead of several upcoming loss-of-exclusivity (LOE) events.
2025 results: growth excluding COVID products, higher adjusted margins
CEO Albert Bourla said 2025 was “a very good year” marked by “strong execution” that allowed Pfizer to “over-deliver on our financial commitments.” The company exceeded expectations for revenue and adjusted diluted EPS and returned $9.8 billion to shareholders through its quarterly dividend.
Denton said Pfizer’s “recently launched and acquired” set of products generated $10.2 billion in 2025 revenue, growing about 14% operationally year over year, as the company continues investing behind these brands to help offset LOEs.
Fourth-quarter trends: non-COVID growth offset by sharp COVID declines
For the fourth quarter, Pfizer posted revenue of $17.6 billion, down 3% operationally versus the prior year period. Denton attributed the decline largely to an “approximate 40%” operational drop in COVID products, citing a narrow U.S. recommendation for COMIRNATY and reduced PAXLOVID demand due to lower infection rates.
Non-COVID products grew 9% operationally in the quarter, with Denton citing contributions primarily from ABRYSVO, ELIQUIS, PREVNAR, and the VYNDAQEL family.
Adjusted gross margin in the quarter was about 71%, which Denton said reflected product mix, including lower COMIRNATY sales, alongside cost management. Total adjusted operating expenses were $7.4 billion, flat year over year. Adjusted selling, informational, and administrative expenses fell 5% operationally, while adjusted R&D expense increased 4% operationally due to higher spending in oncology and obesity candidates, partially offset by pipeline focus and optimization.
Pfizer reported a fourth-quarter GAAP loss per share of $0.29 and adjusted diluted EPS of $0.66, which Denton said was ahead of expectations.
Impairments and portfolio decisions, including a Seagen-related reprioritization
Denton said fourth-quarter GAAP results included approximately $4.4 billion of non-cash intangible and tangible asset impairments tied to “several medicines in development, as well as in-line products,” reflecting strategic development decisions and updated long-range revenue forecasts.
He highlighted that one deprioritized indication was disitamab vedotin in bladder cancer, which he said was “largely the result” of stronger study readouts, expanded indications, and higher long-term revenue projections for PADCEV. Pfizer said it will continue investing behind PADCEV, and Denton added that, overall, the Seagen portfolio is progressing “ahead of our expectations.”
Obesity pipeline update: VESPER-3 supports monthly dosing approach
A key focus of the call was Pfizer’s update on VESPER-3, a phase II-B study of PF-3944, an investigational ultra-long-acting GLP-1 receptor agonist intended to support monthly dosing. Chief Scientific Officer Chris Boshoff said VESPER-3 increased confidence in a phase III monthly dosing study expected to begin later in 2026.
Boshoff said the study had two objectives: (1) demonstrate continued weight loss when switching from weekly to monthly injections and (2) demonstrate that switching to a fourfold equivalent monthly dose remains well tolerated. He said Pfizer “successfully achieved both.”
- At week 28, placebo-adjusted weight loss was 10% and 12.3% for the planned low and medium phase III regimens, respectively.
- Using a model-based meta-analysis approach, Pfizer projected that the planned phase III high-dose monthly regimen (9.6 mg monthly) could deliver nearly 16% placebo-adjusted weight loss at week 28.
- Boshoff said VESPER-3 did not show a weight-loss plateau at week 28, with the study continuing through week 64.
- On safety, he said gastrointestinal adverse events were predominantly mild or moderate, with no more than one instance of severe nausea or vomiting in any dose group and no severe diarrhea.
In Q&A, Boshoff said full tolerability data will be shared at an oral presentation at the American Diabetes Association (ADA) meeting in June. He added that in VESPER-3 the placebo arm was “very stable” on weight through week 28. He also noted the phase III program will allow down-titration, while VESPER-3 did not permit it.
Commercial leaders on the call argued that monthly dosing could resonate with patients, providers, and payers by reducing “medication burden” and supporting persistence. Pfizer also pointed to out-of-pocket demand outside the U.S. as an important market dynamic for the category.
2026 outlook, cost programs, and LOE headwinds
Pfizer reaffirmed 2026 guidance, projecting revenue of $59.5 billion to $62.5 billion and adjusted diluted EPS of $2.80 to $3.00. Denton said COVID product revenue is expected to decline again to about $5 billion in 2026. He also said the guidance assumes about $1.5 billion in revenue compression from products impacted by anticipated generic entry in 2026, while revenue at the midpoint excluding COVID and LOE products is expected to grow about 4% operationally year over year.
On productivity initiatives, Denton said Pfizer achieved about $600 million in savings from phase I of its manufacturing optimization program through 2025, with an additional $700 million expected in 2026 and $200 million in 2027, for a total of $1.5 billion by the end of 2027. He also said Pfizer is on track to deliver the majority of $7.2 billion in total net cost savings from productivity programs by the end of 2026 and reiterated the expected $5.7 billion of net savings from its cost realignment program by the end of 2026.
Bourla said 2026 marks the beginning of an LOE cycle and reiterated the company’s assumption that it loses patent protection for VYNDAQEL at the end of 2028, declining to provide further comment.
About Pfizer (NYSE:PFE)
Pfizer Inc (NYSE: PFE) is a multinational biopharmaceutical company headquartered in New York City. Founded in 1849 by Charles Pfizer and Charles Erhart, the company researches, develops, manufactures and commercializes a broad range of medicines and vaccines for human health. Its activities span discovery research, clinical development, regulatory affairs, manufacturing and global commercial distribution across multiple therapeutic areas.
Pfizer’s portfolio and pipeline cover oncology, immunology, cardiology, endocrinology, rare diseases, hospital acute care and anti-infectives, along with a substantial vaccine business.
