Pfizer(US:PFE) ZACKS·2025-12-19 16:50Core Insights - Pfizer's stock has declined approximately 3% this week following the announcement of its financial guidance for 2026, which did not meet investor expectations [1] Financial Guidance - Pfizer anticipates total revenues for 2026 to be between $59.5 billion and $62.5 billion, reflecting modest growth from the revised 2025 revenue expectation of around $62 billion, primarily due to lower revenues from COVID products and the impending patent cliff [2] - The company expects adjusted earnings per share in the range of $2.80 to $3.00 for 2026, a decline from the 2025 expected range of $3.00 to $3.15, influenced by the dilutive impact of recent deals and lower COVID revenues [3] Oncology Segment - Pfizer holds a strong position in oncology, with oncology sales accounting for approximately 28% of total revenues, which have increased by 7% in the first nine months of 2025 [4][5] - The company is advancing its oncology pipeline and expects to have eight or more blockbuster oncology medicines by 2030 [5] Product Development and Acquisitions - Pfizer is focusing on expanding its product labels and has in-licensed rights for new oncology treatments, including a dual PD-1 and VEGF inhibitor [6][7] - The company has reduced its dependence on COVID-related revenues, with non-COVID operational revenues improving due to key products and new acquisitions, which are expected to deliver double-digit growth in 2026 [8][9] Challenges and Headwinds - Pfizer is facing a significant revenue impact from the loss of exclusivity for several key products between 2026 and 2030, which is projected to reduce sales by approximately $1.5 billion in 2026 [15] - The company is also experiencing lower sales of COVID products due to decreased vaccination and infection rates, with expected COVID revenues around $5 billion in 2026, down from $6.5 billion in 2025 [12][14] Stock Performance and Valuation - Pfizer's stock has underperformed compared to the industry and the S&P 500, losing 4.9% year-to-date [17] - The stock is currently trading at a price/earnings ratio of 8.04, significantly lower than the industry average of 17.11 and its five-year mean of 10.41, indicating potential attractiveness for investors [20] Future Outlook - Despite current challenges, Pfizer's key drugs and new product launches are expected to help offset losses from patent expirations, with anticipated cost savings of $7.7 billion by the end of 2027 [26] - The company is viewed as a hold in investment portfolios as it rebuilds its pipeline in oncology and obesity, which could drive growth from 2029 onwards [27]