Earnings Call Insights: Pfizer Inc. (PFE) Q4 2025
Management View
- CEO Albert Bourla stated, “2025 was a very good year for Pfizer. I’m very pleased with strong execution to deliver and, frankly, over-deliver on our financial commitments. We exceeded expectations for revenues and adjusted diluted EPS while also returning $9.8 billion to shareholders via our quarterly dividend. We grew overall operational revenue for full year 2025 when excluding COVID-19 products, achieved solid double-digit growth in recently launched and acquired products and expanded adjusted gross margins.”
- Bourla highlighted strategic priorities for 2026 including maximizing the value of recent acquisitions, advancing the obesity pipeline, and scaling artificial intelligence across operations. He emphasized, “Seagen, Metsera and Biohaven are the most significant strategic acquisitions in recent years. They have transformative potential for Pfizer, and we are focused on maximizing the value of in-line product portfolios and accelerating pipeline development.”
- Bourla called out progress in the obesity program, notably the VESPER-3 study: “Earlier today, we announced encouraging results from our VESPER-3 study, which previously was known as Metsera-097i (sic) [ MET-097i ], the ultra-long acting investigational next-generation injectable GLP-1 receptor agonist.”
- CFO David Denton stated, “For the full year 2025, we recorded revenues of $62.6 billion versus $63.6 billion last year, representing a 2% operational decline. Importantly, our operational revenue growth when excluding contributions from our COVID-19 products was 6%. Full year 2025 adjusted gross margins expanded to 76%, in line with our expectations.”
- Denton added, “Now turning to the fourth quarter of ’25, we recorded revenues of $17.6 billion, a decrease of 3% operationally versus the same period of LY, largely driven by an approximate 40% operational year-over-year decline in our COVID products. Our non-COVID product performance was solid, growing 9% operationally versus the same period of last year.”
Outlook
- Pfizer reaffirmed full-year 2026 revenue guidance of $59.5 billion to $62.5 billion and full-year 2026 adjusted diluted earnings per share guidance of $2.80 to $3.00.
- Denton commented, “Our COVID products are expected to trend lower again in ’26 with revenues of approximately $5 billion. We continue to expect stable revenue contributions from our non-COVID product portfolio, which incorporates an expectation of approximately $1.5 billion in revenue compression due to products impacted by anticipated generic entry in ’26.”
- He added that “revenues at the midpoint, excluding COVID and LOE products are expected to grow approximately 4% operationally year-over-year.”
- Management stated, “We are targeting the first of a series of potential approvals in 2028” for the obesity portfolio.
Financial Results
- Full year 2025 revenues were $62.6 billion. Adjusted gross margins for the year were 76%. Full year 2025 diluted EPS was $1.36 and adjusted diluted earnings per share was $3.22.
- Fourth quarter 2025 revenues were $17.6 billion. Adjusted gross margin for the quarter was approximately 71%. Total adjusted operating expenses were $7.4 billion for the quarter. Reported diluted GAAP performance was a loss per share of ($0.29). Adjusted diluted earnings per share was $0.66.
- Recently launched and acquired products delivered $10.2 billion in revenues for the full year of 2025 while growing approximately 14% operationally versus last year.
- Pfizer recorded approximately $4.4 billion of noncash intangible asset impairments related to several medicines in development as well as in-line products.
- The company achieved approximately $600 million in savings from Phase 1 of the Manufacturing Optimization Program through 2025.
Q&A
- Christopher Schott, JPMorgan: Questioned tolerability and commercial outlook for VESPER-3. Chris Boshoff responded, “We are really encouraged by the observed distribution of AEs across weekly and monthly… when patients switch to a 4-fold higher dose, we’re going to have a higher number of sudden discontinuations and nausea and vomiting, we did not.”
- Vamil Divan, Guggenheim: Asked about Phase III design and portfolio data. Boshoff replied, “The Phase III design for VESPER-6 will test different titrations as well as… the additional dose of 9.6 milligrams.”
- Steve Scala, TD Cowen: Inquired about VESPER-3 placebo arm and Vyndaqel strategy. Bourla said, “Right now, we are assuming that the patent will be lost at the end of 2028.”
- Geoffrey Meacham, Citi: Asked about dosing intervals and Phase III plans. Boshoff explained, “For ‘3944, our aim is as a monthly maintenance therapy… we do have another molecule… with a potential for 3 monthly administrations.”
- Terence Flynn, Morgan Stanley: Sought demographic and tolerability data on VESPER-3. Boshoff noted, “The study was conducted in the U.S. only… we’re encouraged by the overall tolerability.”
- Akash Tewari, Jefferies: Asked about NSCLC profile and study design. Boshoff stated, “We are confident in the two studies.”
- Asad Haider, Goldman Sachs: Inquired about portfolio realignment. Bourla said, “I think we have done most of the pruning of our pipeline right now.”
- Courtney Breen, Bernstein: Asked about future R&D impact from AI. Denton answered, “We’re being able to be more productive in the infrastructure across R&D and take on more substrate to be able to focus on creating medicines for the end of the decade and beyond.”
Sentiment Analysis
- Analysts pressed for detailed data on obesity assets, tolerability, and commercial positioning, with a neutral to slightly positive tone as they probed for differentiation and clarity on execution.
- Management maintained a confident tone throughout, frequently using phrases such as “we are confident,” “we are pleased,” and “we are encouraged” in both prepared remarks and Q&A.
- Compared to the previous quarter, management’s tone remained assertive, while analysts maintained a consistent, inquisitive approach.
Quarter-over-Quarter Comparison
- 2025 Q4 saw the announcement of positive VESPER-3 results and a clear timeline for the obesity pipeline, compared to Q3’s focus on acquisition activity and pipeline expansion.
- Management reiterated 2026 guidance in both quarters but provided more granularity on non-COVID and LOE portfolio expectations in Q4.
- Analysts in both calls focused on pipeline differentiation, financial impact of acquisitions, and execution on R&D productivity. In Q4, there was a heightened focus on obesity and AI-driven initiatives.
- Key metrics such as revenue, adjusted EPS, and margin remained central, but Q4 included explicit discussion of cost savings achieved and impairment charges.
- Strategic focus shifted from acquisition integration in Q3 to portfolio execution and R&D scaling in Q4.
Risks and Concerns
- Management acknowledged ongoing LOE headwinds from 2026 to 2028 and anticipated generic competition affecting revenue.
- Intangible asset impairments of $4.4 billion were recorded due to pipeline deprioritization.
- There are expectations of lower COVID-related revenues in 2026.
- Analysts expressed concern about product differentiation in obesity, timing of regulatory approvals, and potential market competition.
Final Takeaway
Pfizer management emphasized robust execution in 2025, highlighted by strong financial results and the advancement of the obesity pipeline, with VESPER-3 results supporting a differentiated monthly dosing approach. The company reaffirmed its 2026 guidance and outlined ongoing cost savings, R&D productivity improvements, and strategic investments in AI and pipeline assets. Management remains focused on offsetting upcoming loss of exclusivity impacts, preparing for key product launches, and targeting approvals in the obesity space beginning in 2028, positioning Pfizer for growth toward the end of the decade.