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Pfizer Stock Down 6% Post Q3 Earnings: Time to Buy, Hold or Exit?
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Key Takeaways
Pfizer's newer and acquired products generated $3.8 billion in Q3 revenues, growing 32% operationally.
Oncology growth & obesity drug berobenatide offer potential, but competition & patent expirations pose risks.
Pfizer's 6% dividend yield, attractive valuation and $9.7 billion savings target support holding the stock.
Pfizer’s (PFE - Free Report) shares have declined 5.9% since the company reported third-quarter results on Nov. 3.
Pfizer beat estimates for both earnings and revenues in the third quarter. Adjusted earnings of 87 cents per share and revenues of $16.58 billion were both flat year over year. Growth in Eliquis, Padcev, the Vyndaqel family, Nurtec and Lorbrena was offset by lower sales of COVID-19 products and the Prevnar family. Strong year-to-date commercial performance also prompted the company to raise its full-year 2026 revenue and earnings guidance.
However, despite the better-than-expected results and raised guidance, Pfizer’s shares declined after the third-quarter results. The stock’s decline suggests that investors remain cautious about Pfizer’s growth prospects. A persistent gap between management’s growth expectations and more conservative consensus forecasts underscores that caution.
To assess whether Pfizer stock is a buy, sell or hold, investors should weigh the company’s fundamental strengths against its key risks and challenges.
Pfizer’s Newer Drugs & Acquisitions Strengthen Growth Outlook
Pfizer's business mix has changed significantly over the past few years. During the pandemic, the company became heavily dependent on COVID-19 products, Comirnaty (COVID-19 vaccine) and Paxlovid (oral antiviral). However, the company is gradually diversifying its portfolio through a combination of internal product launches and strategic acquisitions like Seagen, Metsera and Biohaven.
Pfizer’s newly launched and acquired products delivered $3.8 billion in revenues in the third quarter and grew 32% operationally, reflecting strong contributions from products such as Padcev, Nurtec and Lorbrena. Pfizer is investing behind these products to mitigate its loss of exclusivity (LOE) headwinds over the next several years. Its launched and acquired products rose 22% operationally in the first quarter and 18% in the second quarter.
Pfizer’s Cancer Drug Portfolio Offers Significant Potential
Pfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline spanning multiple treatment modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics.
Oncology sales comprise around 27% of its total revenues. Its oncology revenues grew 6% in the first nine months of 2026, driven by drugs like Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.
Pfizer has ventured into the oncology biosimilars space and markets five biosimilars for cancer. Its oncology biosimilars contributed $1.15 billion in sales in the first nine months of 2026, rising 22% year over year.
It is also advancing its oncology clinical pipeline across areas such as breast, thoracic, gastrointestinal and blood cancers. Several oncology candidates have entered late-stage development, such as atirmociclib (a selective CDK4 inhibitor for HR-positive/HER2-negative breast cancer), sigvotatug vedotin (an antibody-drug conjugate for first-line metastatic non-small cell lung cancer) and mevrometostat (an EZH2 inhibitor being developed in combination with enzalutamide for prostate cancer).
A key candidate in its oncology pipeline is tivunatamig/PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated several studies, including two pivotal phase III studies for tivunatamig in first-line metastatic colorectal cancer and first-line NSCLC. Two additional phase III studies are expected to begin before year-end. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
PFE’s Obesity Drug Berobenatide Progresses Amid Strong Competition
Pfizer plans to advance 20-plus studies for obesity and related comorbidities in 2026, including 10 ongoing and planned phase III studiesfor berobenatide (PF’3944), an investigational GLP-1 receptor agonist acquired through its November 2025 acquisition of Metsera.
Berobenatideis being developed for weekly and monthly dosing for chronic weight management and obesity-related conditions, including knee osteoarthritis and obstructive sleep apnea. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028.It is also evaluating berobenatide with the amylin analog PF’3945 in the fully enrolled phase IIb SOLIS-1 study, with efficacy data expected in the second half of 2027.
However, in the obesity space, Pfizer lags far behind leaders like Eli Lilly (LLY - Free Report) and Novo Nordisk (NVO - Free Report) .
PFE’s COVID Business Faces Continued Revenue Declines
During the pandemic, Pfizer generated extraordinary COVID-related sales from Comirnaty and Paxlovid. Those revenues have fallen sharply as the pandemic faded.
Sales of Pfizer’s COVID products, Comirnaty and Paxlovid, came down to around $11 billion in 2024 and $6.7 billion in 2025 from $56.7 billion in 2022. Sales of Comirnaty are declining due to a narrow recommendation for COVID vaccines in the United States, while Paxlovid is experiencing reduced demand from lower infection rates.
In 2026, Pfizer expects COVID-related revenues of approximately $4 billion, down from its previous forecast of $5 billion and below roughly $6.7 billion generated in 2025. The decline reflects the continued normalization of COVID-19 infection rates and lower demand for COVID products. Consistent with this trend, Comirnaty sales declined 38% to $1.30 billion, while Paxlovid sales plunged 69% to $656 million in the first nine months of 2026.
Pfizer’s Patent Cliff Poses a Major Revenue Challenge
Pfizer faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the LOE cliff in the 2026-2030 period as several of its key products, including Eliquis, Ibrance, Xeljanz and Xtandi, face patent expirations. The LOE cliff is expected to hurt sales by approximately $1.1 billion in 2026.
PFE Stock’s Price, Estimates & Valuation
The stock has risen 15.9% so far this year compared with an increase of 25.9% for the industry.
PFE Stock Underperforms Industry
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.91 forward earnings, significantly lower than 19.82 for the industry but slightly above the stock’s five-year mean of 9.25. The stock is also trading below most large drugmakers like Lilly, Novo Nordisk, AstraZeneca, AbbVie, J&J and others.
PFE Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings per share has risen from $2.96 to $3.01, while that for 2027 has risen from $2.95 to $2.96 over the past 30 days.
PFE Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in PFE Stock
Pfizer faces a challenging transition as sales of its COVID-19 products, Comirnaty and Paxlovid, have fallen sharply. Investors remain concerned about whether new product launches, pipeline advances and contributions from acquisitions can replace lost COVID-19 revenues and offset upcoming patent expirations. These concerns have contributed to a disconnect between management’s growth expectations and the stock’s performance.
However, Pfizer expects its recently launched and acquired products, along with a strong pipeline, to help it return to growth from 2029 onward. Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a risk-adjusted high single-digit revenue CAGR for five years, starting from year-end 2028.
Pfizer also expects several regulatory decisions, data readouts and pivotal study starts over the next 12 months, some of which can prove to be important catalysts for the stock.
Pfizer's valuation is relatively inexpensive compared with many large pharmaceutical peers, and the stock offers one of the highest dividend yields in the sector. Pfizer’s dividend yield stands at around 6%.
Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer expects approximately $9.7 billion in total net savings from its productivity enhancement initiative through 2029.
View the Zacks #1 Rank List
Image: Bigstock
Pfizer Stock Down 6% Post Q3 Earnings: Time to Buy, Hold or Exit?
Key Takeaways
Pfizer’s (PFE - Free Report) shares have declined 5.9% since the company reported third-quarter results on Nov. 3.
Pfizer beat estimates for both earnings and revenues in the third quarter. Adjusted earnings of 87 cents per share and revenues of $16.58 billion were both flat year over year. Growth in Eliquis, Padcev, the Vyndaqel family, Nurtec and Lorbrena was offset by lower sales of COVID-19 products and the Prevnar family. Strong year-to-date commercial performance also prompted the company to raise its full-year 2026 revenue and earnings guidance.
However, despite the better-than-expected results and raised guidance, Pfizer’s shares declined after the third-quarter results. The stock’s decline suggests that investors remain cautious about Pfizer’s growth prospects. A persistent gap between management’s growth expectations and more conservative consensus forecasts underscores that caution.
To assess whether Pfizer stock is a buy, sell or hold, investors should weigh the company’s fundamental strengths against its key risks and challenges.
Pfizer’s Newer Drugs & Acquisitions Strengthen Growth Outlook
Pfizer's business mix has changed significantly over the past few years. During the pandemic, the company became heavily dependent on COVID-19 products, Comirnaty (COVID-19 vaccine) and Paxlovid (oral antiviral). However, the company is gradually diversifying its portfolio through a combination of internal product launches and strategic acquisitions like Seagen, Metsera and Biohaven.
Pfizer’s newly launched and acquired products delivered $3.8 billion in revenues in the third quarter and grew 32% operationally, reflecting strong contributions from products such as Padcev, Nurtec and Lorbrena. Pfizer is investing behind these products to mitigate its loss of exclusivity (LOE) headwinds over the next several years. Its launched and acquired products rose 22% operationally in the first quarter and 18% in the second quarter.
Pfizer’s Cancer Drug Portfolio Offers Significant Potential
Pfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline spanning multiple treatment modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics.
Oncology sales comprise around 27% of its total revenues. Its oncology revenues grew 6% in the first nine months of 2026, driven by drugs like Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.
Pfizer has ventured into the oncology biosimilars space and markets five biosimilars for cancer. Its oncology biosimilars contributed $1.15 billion in sales in the first nine months of 2026, rising 22% year over year.
It is also advancing its oncology clinical pipeline across areas such as breast, thoracic, gastrointestinal and blood cancers. Several oncology candidates have entered late-stage development, such as atirmociclib (a selective CDK4 inhibitor for HR-positive/HER2-negative breast cancer), sigvotatug vedotin (an antibody-drug conjugate for first-line metastatic non-small cell lung cancer) and mevrometostat (an EZH2 inhibitor being developed in combination with enzalutamide for prostate cancer).
A key candidate in its oncology pipeline is tivunatamig/PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated several studies, including two pivotal phase III studies for tivunatamig in first-line metastatic colorectal cancer and first-line NSCLC. Two additional phase III studies are expected to begin before year-end. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
PFE’s Obesity Drug Berobenatide Progresses Amid Strong Competition
Pfizer plans to advance 20-plus studies for obesity and related comorbidities in 2026, including 10 ongoing and planned phase III studiesfor berobenatide (PF’3944), an investigational GLP-1 receptor agonist acquired through its November 2025 acquisition of Metsera.
Berobenatideis being developed for weekly and monthly dosing for chronic weight management and obesity-related conditions, including knee osteoarthritis and obstructive sleep apnea. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028.It is also evaluating berobenatide with the amylin analog PF’3945 in the fully enrolled phase IIb SOLIS-1 study, with efficacy data expected in the second half of 2027.
However, in the obesity space, Pfizer lags far behind leaders like Eli Lilly (LLY - Free Report) and Novo Nordisk (NVO - Free Report) .
PFE’s COVID Business Faces Continued Revenue Declines
During the pandemic, Pfizer generated extraordinary COVID-related sales from Comirnaty and Paxlovid. Those revenues have fallen sharply as the pandemic faded.
Sales of Pfizer’s COVID products, Comirnaty and Paxlovid, came down to around $11 billion in 2024 and $6.7 billion in 2025 from $56.7 billion in 2022. Sales of Comirnaty are declining due to a narrow recommendation for COVID vaccines in the United States, while Paxlovid is experiencing reduced demand from lower infection rates.
In 2026, Pfizer expects COVID-related revenues of approximately $4 billion, down from its previous forecast of $5 billion and below roughly $6.7 billion generated in 2025. The decline reflects the continued normalization of COVID-19 infection rates and lower demand for COVID products. Consistent with this trend, Comirnaty sales declined 38% to $1.30 billion, while Paxlovid sales plunged 69% to $656 million in the first nine months of 2026.
Pfizer’s Patent Cliff Poses a Major Revenue Challenge
Pfizer faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the LOE cliff in the 2026-2030 period as several of its key products, including Eliquis, Ibrance, Xeljanz and Xtandi, face patent expirations. The LOE cliff is expected to hurt sales by approximately $1.1 billion in 2026.
PFE Stock’s Price, Estimates & Valuation
The stock has risen 15.9% so far this year compared with an increase of 25.9% for the industry.
PFE Stock Underperforms Industry
From a valuation standpoint, Pfizer appears attractive relative to the industry. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.91 forward earnings, significantly lower than 19.82 for the industry but slightly above the stock’s five-year mean of 9.25. The stock is also trading below most large drugmakers like Lilly, Novo Nordisk, AstraZeneca, AbbVie, J&J and others.
PFE Stock Valuation
The Zacks Consensus Estimate for 2026 earnings per share has risen from $2.96 to $3.01, while that for 2027 has risen from $2.95 to $2.96 over the past 30 days.
PFE Estimate Movement
Stay Invested in PFE Stock
Pfizer faces a challenging transition as sales of its COVID-19 products, Comirnaty and Paxlovid, have fallen sharply. Investors remain concerned about whether new product launches, pipeline advances and contributions from acquisitions can replace lost COVID-19 revenues and offset upcoming patent expirations. These concerns have contributed to a disconnect between management’s growth expectations and the stock’s performance.
However, Pfizer expects its recently launched and acquired products, along with a strong pipeline, to help it return to growth from 2029 onward. Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a risk-adjusted high single-digit revenue CAGR for five years, starting from year-end 2028.
Pfizer also expects several regulatory decisions, data readouts and pivotal study starts over the next 12 months, some of which can prove to be important catalysts for the stock.
Pfizer's valuation is relatively inexpensive compared with many large pharmaceutical peers, and the stock offers one of the highest dividend yields in the sector. Pfizer’s dividend yield stands at around 6%.
Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer expects approximately $9.7 billion in total net savings from its productivity enhancement initiative through 2029.
Investors may hold on to this Zacks Rank #3 (Hold) stock at current levels given its attractive valuation, high dividend yield and efforts to rebuild its growth profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.