Pfizer (PFE) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $15.0 billion, up 1% operationally year-over-year, with 18% operational growth from launched and acquired products such as Eliquis, Padcev, Vyndaqel, and Lorbrena, despite declining COVID-19 product sales.

• Adjusted diluted EPS was $0.77, while reported loss per share was $(0.04) due to $4.3 billion in non-cash intangible asset impairments; this marks the tenth consecutive quarter of EPS outperformance.

• Strategic acquisitions (Seagen, Metsera, Biohaven) and collaborations (Innovent) are delivering transformative growth, with acquired product revenue up 25% operationally, excluding one-time items.

• R&D pipeline advanced with three regulatory approvals, six key data readouts, and eight pivotal study starts in the first half of 2026.

• Major restructuring and manufacturing optimization programs expanded, targeting $9.7 billion in net cost savings through 2029.

Financial highlights

• Q2 2026 revenue was $15.0 billion, up 1% operationally year-over-year; excluding COVID-19 products, underlying business grew 5%.

• Adjusted diluted EPS for Q2 was $0.77; reported net loss was $248 million, mainly due to $4.3 billion in asset impairments and legal charges.

• Adjusted gross margin was 76%; adjusted operating margin was 35%; cost of sales as a percentage of revenue increased to 27.2%.

• Adjusted operating expenses rose 4% operationally year-over-year, with R&D expenses up 13% and SI&A expenses down 3%.

• Operating cash flow for H1 2026 was $3.45 billion; leverage at 2.7x.

Outlook and guidance

• Raised full-year 2026 revenue guidance midpoint by $500 million to $60.5–$62.5 billion, reflecting strong non-COVID product performance and lower COVID product expectations.

• COVID-19 revenue guidance revised down to $4 billion from $5 billion.

• Reaffirmed adjusted diluted EPS guidance of $2.80–$3.00, absorbing a $0.10 impact from the Innovent Biologics transaction.

• High single-digit revenue CAGR targeted for 2028–2033, driven by pipeline and new launches.

• Guidance assumes no share repurchases in 2026 and incorporates anticipated impacts from generic competition.