Pfizer (PFE 3.34%) stock gave up 3.3% through 10:50 a.m. ET Tuesday despite delivering an earnings beat this morning.
Analysts forecast the pharmaceuticals giant would earn $0.57 per share on $16.8 billion in Q4 sales. Pfizer actually earned $0.66 (adjusted for one-time items) on sales of $17.6 billion.
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Pfizer 2025 earnings
That's the good news. The bad news is that while Pfizer "beat" on both sales and adjusted earnings, its earnings as calculated according to generally accepted accounting principles (GAAP) showed a $0.29 per share quarterly loss, and its sales declined 1% year over year.
Full year 2025 results were both worse and better. Sales declined 2% versus 2024. Pfizer did record a GAAP profit for the year however -- $1.36 per share, down 3%. Pfizer blamed continued declines in sales of Covid vaccines Paxlovid and Comirnaty, noting that if one backed out these vaccine sales, revenue would have grown 9%.
Despite the disappointing numbers, CEO Dr. Albert Bourla called the annual results "solid" with "excellent execution" by Pfizer.
NYSE: PFE
Key Data Points
Is Pfizer stock a sell?
Pfizer reaffirmed 2026 sales guidance between $59.5 billion to $62.5 billion (analysts want $61 billion), but disappointed investors here, too, because its earnings guidance remains below analyst expectations: Wall Street wants to see $2.97 per share, adjusted; Pfizer promised only $2.80 to $3 per share -- so $2.90 at the midpoint.
Should investors be disappointed, though?
$2.90 per share would value Pfizer stock at less than 9 times earnings, Pfizer pays a 6.5% dividend yield -- and hasn't cut its dividend even once in the last 15 years. Even single-digit earnings growth should suffice to turn this stock into a buy.
Given time, I think it's a safe bet Pfizer will be able to produce that.
