Pfizer reported a 2% revenue decline and 4% increase in adjusted EPS in 2025, maintaining 2026 revenue guidance at USD 59.5-62.5 billion. Shares fell 3% on Feb. 3. Cost cutting boosted profits in 2025, but growth in 2026 relies on key products like Padcev. Impairments and mixed data on Metsera pipeline raise concerns.

Morningstar lowered Pfizer’s fair value estimate from USD 34 to USD 32 due to reduced growth and margin expectations. Despite undervaluation, market sentiment remains weak. PF’3944 phase 2b trial Vesper-3 showed a 9% discontinuation rate due to adverse events, posing challenges for future efficacy improvements.

Editor’s Note: Morningstar Equity Research originally published this analysis. The author does not own shares in any securities mentioned.

Read more at Morningstar: Pfizer Earnings: Seagen Impairment and Metsera Tolerability Data Incrementally Negative