Pfizer Shares Tumble 3.60% Amid Fourth Quarter Loss and Diminished 2026 Outlook
Shares of American pharmaceutical giant Pfizer Inc. experienced a significant decline on Tuesday, dropping 3.60% following the company's announcement of a substantial fourth-quarter loss and a lowered revenue forecast for the year 2026. The stock price fell by $0.96 to settle at $25.70 by 1:01 p.m. EST, reflecting investor concerns over the company's financial performance and future prospects.
Financial Results and Impairments
Pfizer reported a loss of $1.6 billion for the October-December 2025 period, a stark contrast to the $410 million profit recorded in the fourth quarter of 2024. Quarterly revenue saw a 2% decrease, dropping to $62.6 billion. The company highlighted a continued decline in revenues associated with COVID-19 products and disclosed $4.4 billion in asset impairments. These impairments were necessitated by changes in development plans and updated long-range commercial forecasts, as stated in an official company release.
2026 Revenue Guidance and R&D Expenditure
The pharmaceutical firm forecasted its 2026 revenue to be in the range of $59.5 billion to $62.5 billion, slightly lower than the $62.6 billion reported last year. This outlook aligns with projections made in December. Additionally, Pfizer anticipates research and development expenses to be between $10.5 billion and $11.5 billion in 2026, compared to the $10.4 billion spent on R&D in 2025. The company confirmed that its current financial guidance does not include any share repurchases for 2026, as it focuses on debt management and funding its R&D initiatives to counter the impact of expiring patents.
Decline in COVID-19 Product Sales
In the December quarter of 2025, Pfizer witnessed a significant reduction in revenue from its COVID-19-related products. Sales from the Comirnaty vaccine plummeted by 35%, while revenue from the therapeutic drug Paxlovid declined by 75%. This downturn underscores the shifting market dynamics as the global pandemic recedes, affecting the company's top-line performance.
Strategic Acquisitions and Obesity Drug Trials
Since the pandemic, Pfizer has strategically acquired oncology drug specialist Seagen and Metsera, a company renowned for its weight loss products. Looking ahead to 2026, Pfizer plans to initiate approximately 20 key pivotal studies, with half of these trials focusing on ultra-long-acting obesity assets obtained through the Metsera acquisition. Chief Scientific Officer Chris Boshoff described the initial clinical trial results for anti-obesity products as encouraging, though the company targets the first government approvals only by 2028.
Market Expectations and Analyst Insights
Investors are increasingly seeking combination treatments that can deliver greater weight loss efficacy while minimizing gastrointestinal side effects. Analysts suggest that Pfizer must introduce a product with superior efficacy or safety profiles to establish a strong presence in the competitive obesity drug market. Despite these challenges, CEO Albert Bourla emphasized that the company's solid performance in 2025 lays a foundation for future growth. He described 2026 as a pivotal year, rich in key catalysts and strategic investments aimed at achieving industry-leading growth by the end of the decade.
