Pfizer reported fourth-quarter results that beat estimates despite decreasing demand for its Covid products. The pharmaceutical giant reaffirmed its modest 2026 guidance, focusing on long-term investments like the $10 billion acquisition of obesity biotech Metsera. Pfizer aims to cut costs by $7.7 billion by 2027.

In Q4, Pfizer’s revenue was $17.56 billion, down 1% from the previous year due to lower demand for its Covid vaccine and antiviral pill. The company reported a net loss of $1.65 billion, with adjusted earnings per share of 66 cents. Pfizer expects adjusted profit for 2026 to be between $2.80 and $3 per share.

Pfizer anticipates revenue of $59.5 billion to $62.5 billion in 2026, with flat sales compared to 2025. The company foresees declining sales for its Covid vaccine and antiviral pill, as well as a drop in sales due to market competition for certain products. Pfizer plans to offer deeper discounts in its Medicaid business.

Pfizer’s 2026 guidance includes price and margin compression, as the company plans to provide discounts in its Medicaid business. The pharmaceutical giant struck a landmark drug pricing deal with former President Donald Trump, agreeing to offer its drugs at the lowest price available in other developed countries. Pfizer will receive a three-year exemption from tariffs in return.

Pfizer’s Xeljanz and Xeljanz XR treatments were selected for the third round of Medicare drug price negotiations. New negotiated prices will take effect in 2028. The company continues to focus on addressing market challenges and investing for long-term growth.

Read more at CNBC: Pfizer (PFE) earnings Q4 2025