Revenue and EPS Beat in Q1 2026
Total revenues of $14.5 billion in Q1 2026, exceeding expectations and representing a 2% operational increase year-over-year. Reported diluted EPS was $0.47 and adjusted diluted EPS was $0.75, both above expectations.
May 5th, 2026
Summary
- Earnings Call Date:
- 2026-05-05
- Change Since:
- -7.61%
- Next Earnings Date:
- 2026-08-04
Earnings Call Sentiment
PositiveThe call conveyed strong operational execution: a revenue and EPS beat, healthy underlying growth ex-COVID (~7%), substantial momentum from launched and acquired products (22% operational growth, $3.1B in Q1), multiple positive clinical readouts and meaningful strategic wins (Vyndamax settlement, favorable Belgian court ruling). Management balanced near-term challenges — LOE dynamics, COVID seasonality, higher accrued royalties and increased R&D spend — with clear actions to drive long-term growth (pipeline advancement, vaccine programs, manufacturing and cost-savings targets, BD capacity). Overall, positives around commercial performance, pipeline progress and legal/cash-flow clarity meaningfully outweigh the manageable near-term headwinds.
Company Guidance
Pfizer reaffirmed 2026 guidance, targeting total revenues of $59.5–$62.5 billion and adjusted diluted EPS of $2.80–$3.00, with adjusted gross margins expected in the mid‑70s; that outlook is supported by a strong Q1 showing (revenues $14.5B, +2% operational; ex‑COVID ~+7% operational), Q1 reported EPS $0.47 and adjusted EPS $0.75, adjusted gross margin ~76% and adjusted operating margin 38%. Management emphasized ongoing cost discipline and productivity targets—$7.2B of total net savings by end‑2026 (Phase I savings ~$700M this year, ~$175M realized in Q1)—while noting Q1 metrics such as launch/acquired product revenue $3.1B (+22% op), adjusted Opex $5.5B, operating cash flow $2.6B, leverage ~2.8x, $2.5B invested in R&D, $2.4B returned via dividends, BD capacity of ~ $7B (including ~$1.65B ViiV proceeds) and a $2.6B final TCJA payment; they also flagged assumptions that Paxlovid demand will remain low near term and most Comirnaty sales will be back‑half seasonal, and reiterated a long‑term view of entering a high single‑digit 5‑year revenue CAGR starting in 2029.
Underlying Business Momentum Ex-COVID
Excluding COVID products, the underlying business delivered approximately 7% operational revenue growth in the quarter, signaling broad demand across key brands.
Strong Performance from Launched and Acquired Products
Launches and acquisitions generated $3.1 billion in Q1 revenue and grew ~22% operationally. Notable contributors: Nurtec grew 41% operationally and Seagen products grew 20% year-over-year operationally.
Clinical and R&D Progress — Multiple Positive Readouts
R&D delivered 3 positive Phase III readouts in early 2026 and encouraging mid-stage results. Key clinical wins: Padcev (EV-304) plus pembrolizumab reduced risk of recurrence or death by nearly 50% in cisplatin-eligible muscle-invasive bladder cancer; MagnetisMM-5 for Elrexfio showed significant improvement in progression-free survival in relapsed/refractory multiple myeloma; positive Phase II data for atirmociclib and tilrekimig. Management targets ~20 pivotal study starts, ~8 key data readouts and ~4 regulatory decisions in 2026.
Vyndamax Settlement and Belgian Court Ruling Improve Long-Term Profile
Settlement agreements related to Vyndamax patent matters and a favorable Belgian court ruling on Comirnaty contracts increase visibility into post-2028 cash flows and EPS. Management now expects to enter a 5-year period of high single-digit revenue CAGR starting in 2029 and reduced LOE impact (company noted LOE exposure is now closer to $14–15B vs prior ~$17B).
Vaccines and Pipeline Advancement
Initiated Phase III for a 25-valent pediatric pneumococcal conjugate candidate and advanced directly to a fifth-generation adult vaccine candidate covering 35 serotypes, with clinical development expected to begin this year — moves intended to sustain long-term leadership in vaccines.
Cost Savings, Margins and Capital Allocation Discipline
Adjusted gross margin ~76% in Q1 (mid-70s range guidance maintained). Manufacturing optimization Phase I expected to deliver ~$700 million in savings in 2026 with ~$175 million realized in Q1. Company reaffirmed plan to deliver ~$7.2 billion in total net cost savings by end of 2026. Capital actions: invested $2.5 billion in internal R&D in Q1, returned $2.4 billion to shareholders via dividend, sold ViiV stake for approx. $1.65 billion net proceeds (Q2) and reported BD capacity of about $7 billion; leverage ~2.8x and operating cash flow $2.6 billion in Q1.
Guidance Reaffirmed
Management reaffirmed full-year 2026 guidance: total revenues $59.5B–$62.5B and adjusted diluted EPS $2.80–$3.00 per share, reflecting confidence in execution while accounting for COVID seasonality.
Operator
Good day, everyone, and welcome to Pfizer's First Quarter 2026 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DeMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.
Francesca DeMartino
Good morning, and welcome to Pfizer's earnings call. I'm Francesca DeMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at pfizer.com. Earlier this morning, we released our results for the first quarter 2026 via press release that is available on our website at pfizer.com. I'm joined today by Dr. Albert Bourla, our Chairman and CEO; and Dave Denton, our CFO. Albert and Dave have some prepared remarks, and we will then open the call for questions.
Members of our leadership team will be available for the Q&A session. Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures. I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning and the disclosures in our SEC filings, which are all available on the IR website on pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements. With that, I will turn the call over to Albert.
Albert Bourla
Thank you, Francesca. Good morning, everyone. Thank you for joining our call. It's a wonderful ...
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