Pfizer Inc. (PFE) delivered its first look at 2026 guidance on Tuesday, and the numbers tell a story of transition. The pharmaceutical heavyweight is projecting adjusted earnings of $2.80-$3.00 per share for fiscal 2026, missing the consensus estimate of $3.06. Revenue guidance came in at $59.5 billion-$62.5 billion, slightly below Wall Street's $61.65 billion expectation.

The softer outlook reflects two major headwinds that Pfizer has been telegraphing for months. First, COVID-19 products are expected to bring in about $1.5 billion less revenue in 2026 compared to 2025 levels. Second, patent expirations will create another $1.5 billion drag as certain drugs lose exclusivity and face generic competition. That's a combined $3 billion hit from factors largely outside management's control.

But here's the more encouraging part: Strip out COVID products and those patent-expired drugs, and Pfizer expects its core operational revenue to grow approximately 4% year-over-year at the midpoint. That's not exactly explosive growth, but it suggests the underlying business is holding up as the company navigates this transition period.

For the current fiscal year, Pfizer reaffirmed its 2025 adjusted earnings guidance of $3.00-$3.15 per share, matching the consensus of $3.14. The company also narrowed its 2025 sales outlook to around $62 billion, down from a previous range of $61 billion-$64 billion, coming in just below the $62.48 billion consensus.

Investing in the Pipeline While Cutting Costs

Pfizer is walking a careful line between controlling expenses and investing in future growth. The company expects to spend $12.5 billion to $13.5 billion on selling, informational, and administrative expenses in 2026, reflecting ongoing progress from its Cost Realignment Program. That's management-speak for continued belt-tightening.

On the research side, Pfizer anticipates R&D expenses of $10.5 billion to $11.5 billion in 2026. The company is concentrating resources on priority therapeutic areas, including the development of PF-08634404, a PD-1 x VEGF bispecific antibody that Pfizer in-licensed from 3SBio. The company is also developing multiple clinical programs from Metsera Inc. (MTSR), which Pfizer recently acquired in a deal focused on obesity treatments.

"2025 was a year of strong execution and strategic progress for Pfizer. We've strengthened our foundation, advanced our R&D pipeline, and positioned our company for sustainable growth in the post-LOE period," CEO Albert Bourla said Tuesday. "As we move into 2026, we're focused on serving patients with innovative medicines and vaccines while creating long-term value for our shareholders."

Exiting the BioNTech Partnership

In a move that signals the end of an era, Pfizer is reportedly selling off its remaining stake in COVID-19 vaccine partner BioNTech SE (BNTX). According to a Bloomberg report from November, the company is seeking to offload about 4.55 million American depositary receipts through an overnight block trade.

The shares were priced between $108 and $111.70 each, which could generate roughly $508 million at the high end. It's a far cry from the billions Pfizer and BioNTech generated together during the pandemic's peak, but it reflects the new reality of normalized COVID vaccine demand.

Price Action: Pfizer shares were up 0.61% at $26.59, while BioNTech shares were unchanged at $93.80 during premarket trading on Monday.