01—Abstract
Summary
Summary of the 10-Q filed August 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Pfizer Inc. reported mixed financial results for the quarter and six months ended June 28, 2026.
Total revenues saw a modest increase of 3% year-over-year to $15.0 billiona for the quarter, driven by strong performance in key products like Eliquis and the Vyndaqel family, partially offset by declining COVID-19 product revenues. Operationally, excluding COVID-19 products, total revenues grew by 1% for the quarter and 6% for the year-to-date period. The company reported a net loss of $0.04 per share for the quarter, a significant shift from a net income of $0.51 per share in the prior year, largely due to substantial intangible asset impairment charges and legal expenses.
The six-month period also showed a decrease in net income per share to $0.43b from $1.03 in the prior year. Significant factors impacting profitability include substantial intangible asset impairment charges of $4.3 billion, primarily related to IPR&D assets for a non-small cell lung cancer treatment and developed technology rights for Oxbryta, as well as increased research and development expenses and cost of sales. The company also completed the exit of its investment in ViiV, generating $1.875 billion in cash proceeds, which contributed to a notable gain in "Other (income)/deductions—net."
02—Key points
Key Highlights
- Total revenues increased by 3% to $15.0 billion in Q2 2026, with operational growth of 1%, excluding foreign exchange impacts.
- Excluding COVID-19 products (Comirnaty and Paxlovid), total revenues saw a 1% operational increase in Q2 and a 6% operational increase year-to-date.
- The company reported a net loss of $0.04 per share for the quarter ended June 28, 2026, compared to a net income of $0.51 per share in the prior year.
- Significant intangible asset impairment charges of $4.3 billion were recorded, impacting profitability, primarily related to IPR&D and Oxbryta.
- Pfizer completed the sale of its 11.7% investment in ViiV, receiving $1.875 billion in cash proceeds.
- The company announced further cost-saving initiatives, including an additional $1.0 billion in net cost savings from the 'Realigning Our Cost Base Program' and a new phase for the 'Manufacturing Optimization Program' targeting $1.5 billion in savings.
- Key product revenues showed strong growth for Eliquis (+19% QTD operationally) and Padcev (+23% QTD operationally), while Comirnaty and Paxlovid revenues declined significantly.
03—Questions
Frequently Asked Questions
What is the primary driver behind Pfizer's net loss in the second quarter of 2026?
The primary driver for the net loss in the second quarter of 2026 was a significant charge of $4.3 billion for intangible asset impairments, largely related to R&D assets for a non-small cell lung cancer treatment and developed technology rights for Oxbryta. This was compounded by increased R&D expenses and higher cost of sales, partially offset by a gain from the sale of the ViiV investment.
How are Pfizer's core product revenues performing, excluding COVID-19 products?
Excluding revenues from Comirnaty and Paxlovid, Pfizer's total revenues showed positive operational growth. For the second quarter of 2026, there was a 1% operational increase, and for the first six months of 2026, there was a 6% operational increase. Key products like Eliquis and Padcev demonstrated strong double-digit operational revenue growth.
What are Pfizer's strategies for addressing future revenue challenges due to patent expirations?
Pfizer is implementing significant cost-reduction and optimization programs, including the 'Realigning Our Cost Base Program' and the 'Manufacturing Optimization Program,' aiming for billions in savings. The company is also actively pursuing business development, such as the acquisition of Metsera and collaborations like the one with Innovent, to bolster its pipeline and diversify revenue streams in anticipation of patent expirations.
Can you explain the significant increase in "Other (income)/deductions—net"?
The substantial increase in 'Other (income)/deductions—net' is primarily attributable to two main factors. First, there was a significant gain of $1.875 billion recognized from the sale of Pfizer's investment in ViiV. Second, the period included substantial charges related to intangible asset impairments ($4.3 billion) and certain legal matters, which collectively led to the large fluctuation compared to the prior year.
04—Continue