01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Pfizer Inc. reported total revenues of $14.45 billiona for the first quarter of 2026, an increase of 5% compared to the prior year, driven by operational growth of 2% and a favorable foreign exchange impact of 3%.
While overall revenue showed positive momentum, the company experienced a significant decline in COVID-19 product revenues (Comirnaty and Paxlovid), down 59%b and 63% respectively. However, this was largely offset by strong performance in key therapeutic areas, including Eliquis (up 8% operationally), Vyndaqel family (up 4%), Ibrance (down 1% operationally, but with positive demand drivers), and Padcev (up 39%). Profitability saw a mixed picture.
Net income attributable to Pfizer Inc. common shareholders was $2.69 billionc, a decrease from $2.97 billion in the prior year. This was impacted by a substantial increase in the cost of sales, up 25%, largely due to the non-recurrence of a favorable royalty estimate revision from the prior year and unfavorable foreign exchange. Research and development expenses also increased by 13%, reflecting investments in oncology and obesity candidates.
Despite these pressures, the company's strategic cost management initiatives and strong operational execution in key growth areas position it for continued development. The company also announced a significant acquisition of Metsera, a biopharmaceutical company focused on obesity and cardiometabolic diseases, for $8.0 billiond.
02—Key points
Key Highlights
- Total revenues increased by 5% to $14.45 billion, driven by both operational growth and favorable foreign exchange.
- COVID-19 product revenues (Comirnaty and Paxlovid) saw significant declines, down 59% and 63% respectively, indicating a shift away from pandemic-related sales.
- Key growth drivers included Eliquis (up 8%), Vyndaqel family (up 4%), Nurtec ODT/Vydura (up 41%), and Padcev (up 39%), demonstrating strength in core therapeutic areas.
- Cost of sales increased significantly by 25%, impacting profitability, primarily due to the non-recurrence of a prior year favorable royalty estimate and foreign exchange impacts.
- Research and development expenses rose by 13%, reflecting continued investment in pipeline development, particularly in oncology and obesity.
- Pfizer announced a major acquisition of Metsera for $8.0 billion, signaling a strategic focus on the growing obesity and cardiometabolic disease market.
- Net income attributable to Pfizer Inc. common shareholders decreased by 9% to $2.69 billion, reflecting increased costs and the decline in COVID-19 product sales.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $14.45B$13.71B | +5.4% |
| Cost of Revenue | $3.55B$2.85B | +24.7% |
| Gross Profit | $10.90B$10.87B | +0.3% |
| SG&A Expenses | $2.96B$3.03B | −2.3% |
| Interest Expense | $668.00M$654.00M | +2.1% |
| Net Income | $2.69B$2.97B | −9.4% |
| EPS (Basic) | $0.47$0.52 | −9.6% |
| EPS (Diluted) | $0.47$0.52 | −9.6% |
| Shares Outstanding (Basic) | 5.69B5.67B | +0.3% |
| Shares Outstanding (Diluted) | 5.73B5.71B | +0.4% |
05—Questions
Frequently Asked Questions
What drove the 5% increase in total revenues?
The total revenue increase of 5% to $14.45 billion was driven by a combination of a 2% operational increase and a 3% favorable impact from foreign exchange rates. Key product growth in areas like Eliquis, Vyndaqel, and Padcev, coupled with an active international market, contributed to this increase, largely offsetting the decline in COVID-19 product revenues.
Why did the cost of sales increase so significantly?
The substantial 25% increase in the cost of sales was primarily due to the non-recurrence of a favorable revision to accrued royalties in the prior year's first quarter, which had a positive impact then. Additionally, unfavorable foreign exchange rate movements and increased production costs contributed to this rise.
What is the strategic significance of the Metsera acquisition?
The acquisition of Metsera for $8.0 billion represents a significant strategic move by Pfizer to expand its presence in the rapidly growing obesity and cardiometabolic disease market. Metsera is focused on developing next-generation medicines in these areas, aligning with Pfizer's goal to capitalize on key growth opportunities.
How is Pfizer managing the decline in COVID-19 product revenues?
Pfizer is managing the decline in COVID-19 product revenues by focusing on its diversified portfolio of other key products that are showing strong operational growth. The company is also investing in R&D for new product candidates and leveraging strategic acquisitions like Metsera to build future revenue streams.
06—Continue