Core Viewpoint - Pfizer has released a conservative earnings guidance for 2026, planning to invest in pipeline assets to counteract declining sales from COVID-related products and shrinking revenue from older drugs [3][5][10]. Financial Projections - The company expects adjusted earnings per share for 2026 to be in the range of $2.80 to $3.00, slightly below analysts' expectations of $3.05 [11]. - Pfizer anticipates revenue for 2026 to reach between $59.5 billion and $62.5 billion, consistent with the 2025 revenue guidance of $62 billion [4][11]. Sales Decline Factors - The revenue outlook is impacted by a projected decline of approximately $1.5 billion in sales from COVID vaccines and the oral antiviral drug Paxlovid, bringing their total sales down to $5 billion [4][11]. - Additionally, the loss of market exclusivity for several products is expected to contribute to another $1.5 billion decline in sales [4][11]. Patent Expiration and Market Competition - Pfizer's CFO indicated that the peak of patent expirations is expected between 2026 and 2028, potentially affecting revenues by $17 billion due to the expiration of patents and regulatory exclusivities [6][11]. - Key products, including the anticoagulant drug Eliquis, will face pricing pressures due to new government regulations [12]. Cost Management and Restructuring - The company has exceeded its cost-saving targets for 2025 and aims to achieve over $7 billion in cost reductions by 2027, with most savings expected to materialize in the coming year [13]. - Analysts noted that the earnings outlook aligns with market expectations, and the cost restructuring plan may help mitigate pressures from declining COVID-related business [12][13]. Regulatory Environment and Pricing Agreements - Pfizer has entered a significant drug pricing agreement with the Trump administration, committing to provide existing drugs at the lowest prices available in other developed countries [14]. - The company plans to increase discounts for its Medicare business, which has been factored into the 2026 earnings guidance, considering the impact of price compression and margin contraction [14].