Pfizer’s Quarterly Performance Signals a Strategic Shift

While the pharmaceutical giant Pfizer continues to navigate a significant revenue decline following the end of the Covid-19 boom, its latest quarterly figures offer initial evidence that its post-pandemic strategy is gaining traction. Investors are now closely watching the company's costly strategic realignment as it attempts to address the gap left by fading pandemic-related income.

For the full fiscal year, Pfizer reported a slight decrease in overall revenue. However, a detailed examination reveals a potential turning point. Excluding Covid-19 products, the company's core business demonstrated operational growth, expanding by nine percent in the fourth quarter. The firm surpassed analyst expectations with an adjusted earnings per share of $0.66, suggesting that a floor may have been established in its underlying operations.

Cost-Cutting Measures Amid a Cautious Outlook

Despite the strong final quarter, management maintains a restrained forecast. The confirmed guidance for 2026 implies a year-over-year profit decline. This anticipated pressure stems primarily from expiring patents, expected to reduce revenue by approximately $1.5 billion, coupled with continued declines in income from the Covid portfolio. To safeguard profitability, Pfizer is implementing rigorous cost controls. A comprehensive efficiency program aims to achieve savings of about $7.2 billion by the end of 2026.

Should investors sell immediately? Or is it worth buying Pfizer?

The Obesity Drug Market: A High-Stakes Bet

Pfizer is making a substantial long-term bet on its research pipeline within the rapidly expanding weight-loss medication market to return to a growth trajectory. Following the acquisition of assets from Metsera, the corporation plans to initiate several pivotal clinical studies in 2026. Market researchers at Goldman Sachs currently rate the equity as "Neutral," assigning a price target of $26. They indicate that concrete clinical trial data is needed before reconsidering their assessment.

The shares are currently trading at €21.89 and continue to reflect weak technical sentiment, evidenced by a year-to-date loss of nearly 14 percent. For a sustained recovery, Pfizer will require not only disciplined cost management but, crucially, positive data from its development pipeline throughout the current year. Consequently, 2026 is set to be a critical test for the company's new strategic direction.