San Francisco Frontiers - Tepid 2026 outlook dents Pfizer shares

Shares of the big drugmaker fell sharply after it projected a dip in full-year adjusted profits per share on roughly flat revenues.

Pfizer expects 2026 revenues of between $59.5 billion and $62.5 billion, compared with $62 billion in 2025.

The pharma giant last month completed an acquisition of biotech firm Metsera, deepening its portfolio of products in the fast-growing market for weight loss drugs.

Pfizer has also identified oncology as a major growth area, while Chief Executive Albert Bourla insisted the company would continue to invest in vaccines in the face of recent controversial policies under the vaccine-skeptic Trump administration.

The drugmaker expects a drop of $1.5 billion in 2026 revenues tied to lower Covid-19 sales and the decline of another $1.5 billion from products experiencing a loss of exclusivity.

Pfizer has maintained a dividend but not undertaken share repurchases in 2025. Executives said they would continue to steer cash into development programs rather than stock repurchases.

"Obviously I would love to do share repurchases," Chief Financial Officer David Denton said on a conference call. "The reality is at this point in time, I think the best and highest use of capital is continued investment in business development."

Briefing.com said the results underscored Pfizer's "painful transition" out of the Covid-19 era.

The tepid outlook "indicates that earnings will likely remain stagnant or decline slightly as the company digests the Metsera deal and ramps up R&D," Briefing.com said in its note.

On vaccines, Bourla characterized recent policy shifts under US Health Secretary Robert Kennedy as misguided.

"Vaccines are an essential part of any health care system," Bourla said. "We will continue investing in vaccines because ... this is an anomaly that will correct itself. I hope pretty soon."

Under Kennedy, an appointee of Donald Trump, the Centers for Disease Control recently revised its website with language that undermines its previous, scientifically grounded position that immunizations do not cause autism.

Bourla has also touted a deal announced in September with the Trump administration in which the company promised to lower some drug prices in exchange for a three-year reprieve on planned tariffs.

Shares of Pfizer fell 3.8 percent in afternoon trading.

E.Walker--SFF