Pfizer reported a **2% decline** in revenue for the fiscal year 2025, while adjusted earnings per share (EPS) increased by **4%**. The company maintained its revenue guidance for 2026, estimating between **$59.5 billion** and **$62.5 billion**, indicating a potential flat performance to a **5% decline**. Despite these figures, shares fell by **3%** during intraday trading on **February 3, 2026**.
Management’s cost-cutting efforts allowed Pfizer to offset top-line challenges and achieve a modest bottom-line gain in 2025. However, analysts are concerned that this leverage may diminish in 2026, as revenue growth increasingly depends on a limited number of products. Among these, **Padcev** is emerging as a key growth driver, particularly as its use expands in earlier stages of bladder cancer when combined with **Merck’s** **Keytruda**.
Several of Pfizer’s other significant products are experiencing competitive pressure. The oncology drug **Ibrance**, vaccine **Prevnar**, and cardiovascular drug **Vyndaqel** are all facing challenges from superior alternatives in the market. As the company looks to its pipeline for future growth, recent developments raise concerns. Notably, Pfizer recorded a **$4.4 billion impairment** in the fourth quarter, partly related to its programs with **Seagen**.
Pipeline Concerns and Market Sentiment
The **Metsera** obesity program, specifically the **MET-097i (PF’3944)** trial, has produced mixed data. Initial results from the **phase 2b trial Vesper-3** indicated a discontinuation rate of approximately **9%** due to adverse events. Analysts worry that any attempts to enhance efficacy beyond currently marketed options could further impact the tolerability profile of the drug.
Due to these challenges, analysts at **Morningstar** have lowered their fair value estimate for Pfizer from **$34** to **$32** per share. This adjustment reflects diminished long-term growth and margin expectations, especially concerning the Metsera pipeline. Despite these setbacks, market sentiment appears weak, leaving Pfizer’s shares potentially undervalued.
As Pfizer navigates these complexities, the company’s ability to revitalize its growth trajectory will heavily depend on its pipeline advancements and the performance of its existing products amidst a competitive landscape.
