How much of the $1.5 billion non-COVID guidance increase comes from Eliquis versus other parts of the business, and what is the outlook for Padcev growth after its label expansion?

The non-COVID strength is broad, not just Eliquis, but also launched and acquired products (27% growth excluding one-time impact). Padcev's expanded label across the entire bladder cancer continuum is exciting. Q2 growth was over 20%, driven by strong commercial execution and high LAM UC new patient share. Growth pace will moderate but MIBC offers future upside. “The strength of our business led to the incremental $1.5 billion above the original guidance is a reflection of, one, exceeding our expectation in Q1 and Q2 on non-COVID portfolio, but it also reflects the confidence in the momentum across our overall business. It comes from our key products, Eliquis being one of them with the drivers that our partner, BMS has described, but it's also coming from our launched and acquired products.”

If the EZH2 trial hits, how large is the commercial opportunity, potentially Xtandi-like?

If successful, the opportunity for mivrometostat can scale across the entire prostate cancer disease continuum, from post-abiraterone to earlier lines. It's a 100% global opportunity for Pfizer, unlike Xtandi, making it very exciting. “If we are successful, I think the opportunity can scale across the entire disease continuum from post-abiraterone to earlier line settings. So I think that's exciting for us. The other thing I will point out is that mivrometostat will be a 100% global opportunity for Pfizer.”

What would cause a dividend cut, and is the $6 billion BD capacity constraining given the market opportunities?

Pfizer is extremely confident in maintaining the dividend, even in stretched scenarios, and expects to grow it after the LOE period. The $6-7 billion remaining BD capacity will be used strategically for bolt-on acquisitions in areas like oncology, immune-inflammation, primary care (obesity), and vaccines, building on significant prior investments. “We feel extremely confident that we will -- even the most stretched scenarios that we are running, we will be able to maintain our dividend. So I want once and for all to make that clear to all that the dividend will be maintained and eventually through the -- after the LOE period will be start again growing it.”

PFE

Pfizer (PFE) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 4, 2026

Source: earnings call transcript

Executive summary

Pfizer Inc. Q2 FY26 — Strong Non-COVID Performance and Raised Revenue Guidance

Pfizer delivered a strong Q2 FY26, driven by robust performance in its non-COVID portfolio and acquired assets, leading to a raise in full-year revenue guidance despite lower COVID-19 product sales. The company continues to advance a deep R&D pipeline, particularly in oncology and obesity, while expanding cost-saving initiatives and reaffirming its commitment to dividend growth post-LOE period. Strategic investments in AI are also accelerating productivity across the business.

Highlights

Q2 FY26 revenues of $15 billion exceeded expectations, representing a 1% operational increase year-over-year.
Excluding COVID products, the underlying business delivered 5% operational revenue growth.
Launched and acquired products delivered $3.2 billion in revenue, growing 18% operationally (27% excluding prior year one-time impact).
Adjusted diluted EPS of $0.77 exceeded expectations, reflecting cost discipline and strong non-COVID revenue.
Midpoint of full-year 2026 revenue guidance raised by $500 million to $60.5 billion - $62.5 billion.

Concerns

Lower-than-expected COVID revenues, with full-year 2026 COVID-19 revenue expectations revised down to $4 billion from $5 billion.
Q2 GAAP results included a $4.3 billion noncash intangible asset impairment due to SV Phase III readout failure and Oxbryta revenue forecast removal.
Adjusted diluted EPS guidance of $2.80 - $3.00 now absorbs an unfavorable $0.10 impact from the Innovent Biologics transaction's Acquired IPR&D charge.
Leverage ended the quarter at 2.7x and is expected to remain around current or modestly higher levels through the LOE transition period.
Phase III trial for sigvotatug vedotin (SV) in non-small cell lung cancer did not meet its primary overall survival endpoint.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$60.5 billion - $62.5 billion high materiality	FY26	High
Full-year 2026 Adjusted Diluted EPS	$2.80 - $3.00 high materiality	FY26	High
COVID-19 Revenues	approximately $4 billion medium materiality	FY26	Medium
Net Cost Savings (Productivity Enhancement)	$6.7 billion medium materiality	through 2029 · FY29	High
Net Cost Savings (Manufacturing Optimization)	$3 billion medium materiality	through 2029 · FY29	High
Total Net Cost Savings	$9.7 billion high materiality	through 2029 · FY29	High
First Approval for Berobenatide	2028 high materiality	CY28	Medium
Revenue CAGR	high single-digit high materiality	year-end 2028 through year-end 2033 · FY33	High
Dividend Policy	maintain and over time, grow high materiality	long-term	High
Adjusted Gross Margin	mid-70s range medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Total Company (excluding COVID products) Operational revenue growth for the underlying business, excluding COVID products.	—	5%	—	—
Launched and Acquired Products Strong contribution from key brands and recent acquisitions. Operational growth (excluding one-time impact in Q2 2025): 27%	$3.2 billion	18%	—	—
Legacy Seagen Portfolio (U.S.) Year-over-year increase, excluding one-time stocking benefit in Q2 2025.	—	21%	—	—
Padcev Strong growth driven by commercial execution and label expansion across bladder cancer continuum. LAM UC new patient share: above 60%	—	over 20%	—	—
Nurtec Continued strong year-over-year growth and market leadership. Leadership in oral CGRP class: Total Prescriptions	—	strong	—	—

Deals & partnerships

Seagen Acquisition of an innovative platform, deep scientific expertise, and a promising ADC pipeline.

Central to goal of growing Oncology leadership.

Metsera Acquisition to unlock a differentiated profile for patients with obesity and related conditions.

Berobenatide, an investigational ultra-long-acting GLP-1 receptor agonist, is targeting first approval in 2028.

Biohaven Acquisition positioned Pfizer as a leader in migraine treatment options.

Migraine affects an estimated 1.2 billion people worldwide.

Innovent Biologics Transaction resulting in an Acquired In-Process R&D expense. $650 million

Deal closed in July.

ViiV Exit from ViiV.

Closed earlier in the quarter.

Risks & headwinds

Lower-than-expected COVID-19 revenues FY26

Revised down to $4 billion from $5 billion for FY26

Mitigation:Strong performance of non-COVID portfolio and cost discipline have offset the shortfall.

Unfavorable impact from Innovent Biologics transaction FY26

Approximately $0.10 impact on adjusted diluted EPS

Mitigation:Absorbed within the reaffirmed EPS guidance range.

Intangible asset impairments Q2 FY26

$4.3 billion noncash charge

Mitigation:Resulted from SV Phase III readout failure and removal of Oxbryta revenue projections. SV still has risk-adjusted revenue forecast in other indications.

Leverage remaining elevated through LOE transition period

Ended Q2 at 2.7x, expected to remain around current or modestly higher

Mitigation:Disciplined capital allocation and focus on long-term growth and dividend maintenance.

Low COVID-19 incidence ongoing

Could continue to limit Paxlovid utilization

Mitigation:Comirnaty sales expected towards year-end consistent with vaccination season; non-COVID business offsetting impact.

Currency fluctuation ongoing

Not quantified

Mitigation:Will continue to monitor as the year progresses.

340B hospital payments proposal

CMS proposal to cut reimbursement from ASP +6% to ASP -33%

Mitigation:Pfizer is actively explaining the program's deviation from original intent to regulators and legislators; outcome uncertain.

What to watch in Q3 FY26

Mivrometostat MEVPRO-1 data readout

Current Trial fully enrolled, events not yet reached

Target First readout expected

Why it matters

This is a potential breakthrough therapy in prostate cancer, and the readout will validate the mechanism and commercial opportunity.

MEVPRO-1, our goal is to delay resistance to Xtandi, which has historically delivered radiographic progression-free survival of about 5 to 8 months in similar settings. Each of these studies is event-driven with the first readout expected in the fourth quarter based on the current event rate.

Find out whether PFE delivers this. Inve re-checks your case every morning.

Q&A highlights

What defines success for the MEVPRO-1 trial, specifically regarding the magnitude of benefit and its implications for broad adoption?

The trial is event-driven and fully enrolled, with events not yet reached. Success is defined by a clinically meaningful benefit of approximately 30% over standard of care, based on a hazard ratio. The control arm is expected to perform at 5-8 months PFS. The Phase I data showed a hazard ratio of 0.5, doubling radiographic PFS.

“MEVPRO-1, 2 and 3 are event-driven studies, meaning control and experimental arm is where events could happen. However, the statistical analysis plan is based on a clinically meaningful benefit of approximately 30% over standard of care because that will be clinically meaningful. And it's hazard ratio based.”

asked by Evan Seigerman · answered by Chris Boshoff

2 min read 6 chapters

Detailed narrative

Strategic Priorities and Acquisitions Driving Growth

Pfizer's strategic priorities are centered on maximizing value from key transactions like Seagen, Metsera, and Biohaven. Acquired products saw 25% operational revenue growth, excluding one-time items. The legacy Seagen portfolio in the U.S. grew 21% year-over-year, exceeding initial expectations. Metsera's berobenatide, an ultra-long-acting GLP-1, is targeting a first approval in 2028 with 10 Phase III studies planned this year.

Biohaven's Nurtec continues to lead the oral CGRP class in prescriptions, with ongoing Phase III trials for menstrual and chronic migraine.

Pipeline Progress and R&D Focus

The R&D pipeline achieved 3 regulatory approvals, 6 key data readouts, and 8 pivotal study starts in the first half of the year. Oncology is a key strength, with a dozen late-stage studies initiated and 6 regulatory approvals in the past two years.

Key assets like Padcev received expanded FDA approval for muscle-invasive bladder cancer, and mivrometostat, an EZH2 inhibitor, is in Phase III for prostate cancer with a readout expected in Q4. The company is also advancing next-wave ADC breakthroughs and a PD-1 x VEGF bispecific antibody, 4404, with promising early data.

Cost Optimization and Financial Discipline

Pfizer is expanding its cost improvement programs, now expecting approximately $9.7 billion in total net cost savings through 2029. This includes $6.7 billion from productivity enhancement (up $1 billion) and $3 billion from manufacturing optimization (up $1.5 billion). These initiatives are designed to enhance operating efficiency, support margin expansion, and enable continued investment in innovation.

Adjusted gross margin for Q2 was 76%, reflecting product mix and cost control.

AI Integration for R&D and Commercial Effectiveness

AI is viewed as a structural transformation opportunity to accelerate R&D, improve productivity, and enhance competitive positioning. The company is already seeing benefits in manufacturing cost reduction and yield expansion, as well as increased effectiveness of its commercial field force and marketing. The ambition is to build an AI-native R&D organization, continuously informing decisions from target discovery through medical evidence.

Capital Allocation and Shareholder Returns

The capital allocation strategy focuses on reinvesting in the business, maintaining and growing the dividend over time, and preserving optionality for future value-enhancing actions like share repurchases. In H1 2026, $5.5 billion was invested in R&D, and $4.9 billion was returned to shareholders via dividends.

The company has approximately $6 billion in remaining business development capacity, with a focus on bolt-on acquisitions in oncology, immune-inflammation, primary care (obesity), and vaccines.

COVID-19 Business Performance and Outlook

Q2 FY26 COVID-19 revenues were lower than expected due to low infection levels, primarily impacting Paxlovid. Full-year COVID-19 revenue guidance was revised down to $4 billion from $5 billion. Comirnaty sales are expected to occur mostly towards year-end, consistent with vaccination season. The company emphasizes that the non-COVID business's strong performance has offset the shortfall from COVID products this year.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.