Wedoany.com Report-Dec.17, Pfizer has issued a fiscal year 2026 earnings projection below consensus expectations, citing anticipated declines in revenue from Covid vaccine products and the upcoming expiration of exclusivity on several key medications.

Pfizer has adjusted its FY2026 profit forecast to between $59.5bn and $62.5bn amid declining Covid vaccine sales and the loss of exclusivity of some of its assets.

The company anticipates adjusted earnings per share between $2.80 and $3.00 for 2026, compared to the average analyst forecast of $3.05 per share according to London Stock Exchange Group data. Revenue guidance stands at $59.5 billion to $62.5 billion, against an expected $61.59 billion.

Pfizer shares showed minimal movement at the market opening on December 16 following the disclosure.

Research and development spending is planned in the $10.5 billion to $11.5 billion range, supporting progression of a recently licensed PD-1xVEGF oncology compound from 3SBio and various programs acquired through the Metsera transaction.

Covid vaccine contributions are projected to decrease by $1.5 billion in 2026 relative to 2025 estimates. Similar trends affect other pharmaceutical firms as demand for related products moderates.

An additional $1.5 billion impact stems from loss of exclusivity on select items. Although specific names were not detailed, the Janus kinase inhibitor Xeljanz faces major patent expirations in 2026, with blood thinner Eliquis and cancer treatment Ibrance approaching similar transitions in subsequent years.

Citi analysts said in a research note: "While Pfizer is on the right path to get back to growth, we see continued near-term pressure from loss of exclusivity."

The 2025 revenue outlook has been adjusted to approximately $62 billion, aligning with the lower bound of prior guidance ranging from $61 billion to $64 billion, marking a revision from the August 2025 estimate.

Pfizer has elevated its cost-reduction target, aiming for $7.7 billion in savings by 2027 under a program initiated in 2023. As part of this restructuring, 230 positions in Switzerland are scheduled for elimination, contributing to scaled operations in the country.

In pursuit of growth opportunities, Pfizer has pursued significant acquisitions focused on cardiometabolic therapies.

Last month, the company completed a $10 billion purchase of Metsera, securing access to extended-duration weight management candidates following competitive bidding.

Shortly thereafter, Pfizer entered a $2 billion agreement with YaoPharma, part of Shanghai Fosun Pharmaceutical, obtaining worldwide rights to develop, produce, and market the oral GLP-1 receptor agonist YP05002.

These moves follow the discontinuation of Pfizer's internal oral obesity candidate danuglipron in April 2025 due to a clinical trial observation involving liver effects.

Market analysis from GlobalData projects the obesity treatment segment to reach $173.5 billion across major markets (United States, France, Germany, Italy, Spain, United Kingdom, and Japan) by 2031.

Pfizer's guidance reflects a transitional phase, balancing near-term challenges from maturing products with investments in emerging therapeutic areas.

Cost discipline supports resource allocation toward pipeline advancement and strategic acquisitions.

The emphasis on obesity and related conditions aligns with substantial projected demand for effective management options.

By securing external assets, Pfizer strengthens its position in high-potential segments following internal program adjustments.

Overall, the outlook combines cautious near-term projections with proactive steps to build future revenue streams through innovation and partnerships.