Pharma Giant Pfizer Exceeds Q4 Earnings, Cautious on 2026 Outlook Despite COVID-19 Sales Downturn - PFE

[Para 1: The Lead] Pfizer, the American pharmaceutical giant (PFE-US), exceeded market expectations for its Q4 2025 earnings, bolstered by strong performance from mature products. Despite a significant drop in COVID-19 vaccine and oral drug sales, the company reported a Q4 revenue of $17.56 billion, surpassing the market consensus of $16.95 billion. Adjusted earnings per share stood at $0.66, exceeding analyst estimates. However, Pfizer maintained a cautious outlook for 2026, citing ongoing challenges from patent expirations and pricing pressures. [Para 2-3: Supporting details & Context] Pfizer's success was driven by robust sales of its mature products, including Eliquis at $2 billion, Prevnar at $1.7 billion, and Vyndaqel meeting market expectations. The RSV vaccine Abrysvo also outperformed with sales of $1.03 billion, a significant increase from market forecasts. However, COVID-19 vaccine sales fell to $2.3 billion, down 30% year-over-year, and Paxlovid sales were $218 million, a 67% decline, below market expectations. Pfizer expects COVID-19 product sales to continue declining, with a further $1.5 billion in sales reductions in 2026 due to patent expirations and increased competition. Additionally, pricing policies and potential impacts on future medical insurance negotiations will further pressure profitability. Pfizer's hope for growth lies in its new drug development and acquisition strategies, particularly in obesity drugs. The company's first interim data on Metsera's weight loss drug showed a 12.3% weight loss in 28 weeks. However, market reaction has been cautious due to limited data on safety and comparative efficacy. Pfizer aims to launch approximately 20 late-stage clinical trials in 2026, focusing on obesity drugs for potential 2028 approval. The company also plans to cut $7.7 billion in costs by 2027 to manage the transition pressures following the wind-down of COVID-19 profits.