Pfizer Shares Slide After Mixed Earnings And Drug Data

Pfizer, one of the world’s most prominent pharmaceutical companies, faced a turbulent day in the markets on February 3, 2026, after releasing its fourth-quarter 2025 earnings and providing updates on its much-anticipated weight-loss drug. Despite beating analyst expectations on some key financial metrics, the company’s stock closed down 3% as investors reacted to a mix of promising and underwhelming news.

The day began with Pfizer reaffirming its full-year outlook for 2026. According to Seeking Alpha, this guidance confirmed a looming revenue contraction, largely due to a nearly $1.5 billion impact from several products losing market exclusivity. The loss of exclusive rights to certain drugs is a challenge that many pharmaceutical giants eventually face, as generic competitors enter the market and drive prices down. For Pfizer, this hit was enough to overshadow otherwise solid financial results.

Dow Jones reported that the reaffirmed outlook unsettled investors, who were already wary of the company’s ability to maintain growth in a post-pandemic landscape. The pharmaceutical sector has seen a whirlwind of change since Covid-19 upended global health priorities, and Pfizer’s fortunes have been closely tied to the success of its Covid-related products. But as the world moves beyond the acute phase of the pandemic, the company is being forced to find new engines of growth.

On the earnings front, Pfizer’s numbers were a mixed bag. As The Motley Fool pointed out, analysts had forecast that Pfizer would earn $0.57 per share on $16.8 billion in sales for the fourth quarter of 2025. In reality, the company outperformed those predictions, posting adjusted earnings of $0.66 per share and $17.6 billion in sales. At first glance, that sounds like cause for celebration. However, the details told a more nuanced story.

While adjusted earnings beat expectations, the company’s generally accepted accounting principles (GAAP) results painted a less rosy picture. Pfizer actually recorded a $0.29 per share loss for the quarter under GAAP, and sales declined 1% year over year. For the full year 2025, sales fell 2% compared to 2024, and GAAP profit came in at $1.36 per share—down 3%. These declines were attributed primarily to waning sales of the company’s Covid-19 vaccines, Paxlovid and Comirnaty. The Motley Fool noted that if those products were excluded, Pfizer’s revenue would have actually grown by 9% for the year, underscoring the company’s efforts to diversify its portfolio beyond pandemic-era blockbusters.

Despite these challenges, Pfizer’s leadership struck a confident tone. CEO Dr. Albert Bourla described the annual results as “solid” and praised the “excellent execution” of the company’s strategy. Investors, however, seemed less convinced, especially as the company’s 2026 sales guidance of $59.5 billion to $62.5 billion fell in line with, but did not exceed, Wall Street’s expectations. Earnings guidance for 2026 was set at $2.80 to $3.00 per share adjusted, a figure that landed below the $2.97 per share analysts had hoped for. The reaffirmed guidance, combined with the anticipated loss of market exclusivity, seemed to weigh heavily on market sentiment.

Adding to the day’s drama was news about Pfizer’s foray into the red-hot market for weight-loss treatments. Investors and analysts have been watching closely as pharmaceutical companies race to develop new drugs to tackle obesity, a condition affecting millions worldwide and representing a massive commercial opportunity. On Tuesday, Pfizer provided an update on its obesity treatment, MET-097i, which it acquired in a $10 billion deal that generated significant industry buzz.

According to Investor’s Business Daily and MarketWatch, the company reported mixed results from a Phase 2b trial of the once-a-month injectable drug. Two different doses demonstrated weight reductions of 10% and 12.3% after 28 weeks in adults with obesity or overweight who did not have Type 2 diabetes. The trial protocol involved patients receiving weekly shots for the first 12 weeks, followed by monthly maintenance doses for up to 28 weeks. The results showed that patients on the drug lost up to 12.3% more body weight on average than those receiving a placebo.

While these numbers are certainly meaningful—especially in a field where even modest weight loss can have significant health benefits—investors were hoping for a more dramatic showing, particularly given the fierce competition from drugs like Eli Lilly’s Zepbound. As MarketWatch reported, the response to the data was “mixed,” with some market watchers describing the results as “good, but not category-defining.” The intense interest in the weight-loss drug market, combined with Pfizer’s high-profile $10 billion acquisition, meant expectations were sky-high. When the data failed to decisively surpass rival products, disappointment set in, contributing to the 3% drop in Pfizer’s share price by the end of the trading day.

All told, February 3, 2026, proved to be a pivotal day for Pfizer. The company’s stock was battered by a combination of factors: the reaffirmed guidance pointing to a revenue and profit decline in 2026, the anticipated loss of market exclusivity for some key products, and the market’s lukewarm reaction to the latest weight-loss drug data. Yet, amid the gloom, there were glimmers of resilience. Pfizer’s dividend yield stood at a robust 6.5%, and as The Motley Fool highlighted, the company has not cut its dividend in 15 years—a testament to its financial stability even in turbulent times.

For investors, the question now is whether Pfizer can successfully navigate the patent cliffs, ramp up its non-Covid portfolio, and carve out a meaningful share of the burgeoning obesity treatment market. The company’s management remains optimistic, pointing to “solid” execution and a pipeline that, while not without its challenges, still holds promise. Only time will tell if that optimism is warranted, but one thing’s for sure: all eyes will be on Pfizer as it charts its course through a rapidly evolving pharmaceutical landscape.