Pfizer (PFE) official guidance

The Innovent Biologics deal closed in July, resulting in an initial $650 million upfront payment to be recorded as acquired in-process R&D expense in the third quarter.

Separately, the next phase of our multi-year manufacturing optimization program is designed to reduce cost of goods sold and deliver approximately $1.5 billion in additional net cost savings, and we expect to begin realizing a portion of this saving in 2027.

Building on that momentum, today we announce the expansion of our ongoing cost improvement programs, which are expected to generate approximately $2.5 billion in additional net cost savings from 2027 through 2029.

We now expect total net cost saving from this program of approximately $3 billion through 2029.

We have made meaningful progress on our productivity enhancement initiative and remain on track to deliver most of the anticipated $7.2 billion in total net cost savings by the end of 2026.

In summary, we now expect approximately $9.7 billion in total net savings from this program through 2029.

We are reaffirming all other components of guidance, including adjusted diluted EPS guidance of $2.80-$3.

We are targeting a first approval in 2028, and this year alone, we expect to advance an extensive phase III program that includes 10 studies for chronic weight management and obesity-related conditions.

This outlook reflects year-to-date performance, confidence in our business, progress with ongoing cost improvement initiative, our expectation of adjusted gross margin in the mid-70s range, and continued investment to support growth by the end of the decade.

Here we provide visibility into the steady cadence of milestones expected over the next 12 months, including five regulatory decisions, eight key readouts, and 19 pivotal study starts.

We are targeting a first approval in 2028, and this year alone, we expect to advance an extensive phase III program that includes 10 studies for chronic weight management and obesity-related conditions.

Here we provide visibility into the steady cadence of milestones expected over the next 12 months, including five regulatory decisions, eight key readouts, and 19 pivotal study starts.

Here we provide visibility into the steady cadence of milestones expected over the next 12 months, including five regulatory decisions, eight key readouts, and 19 pivotal study starts.

Our updated revenue guidance reflects strong non-COVID product performance and revised revenue expectation of approximately $4 billion, down from $5 billion for COVID-19 revenues.

Based on our performance to date and continued execution, we are raising our full year 2026 guidance by $500 million at the midpoint to a range of $60.5 billion-$62.5 billion from $59.5 billion-$60.5 billion.

We also have clear line of sight to our aim of delivering a risk-adjusted, high single-digit revenue CAGR from year-end 2028 through year-end 2033.

Pfizer announced $1.0 billion of additional anticipated net cost savings associated with its ongoing cost realignment program (the “Realigning Our Cost Base Program”) driven by further productivity enhancements from technology and simplification efforts across our commercial, R&D and enabling functions. These additional net savings are expected to further reduce costs in SI&A and be realized from 2027 through 2029.

Pfizer previously announced that it remains on track to deliver anticipated net cost savings from the first phase of this program of approximately $1.5 billion by the end of 2027 and, with the additional targeted savings from this phase, Pfizer now expects total net cost savings of approximately $3.0 billion from this program through 2029.

Pfizer previously announced that it remains on track to deliver anticipated net cost savings of approximately $5.7 billion by the end of 2026 and, with the additional anticipated savings, Pfizer now expects total net cost savings of approximately $6.7 billion from the Realigning our Cost Base Program through 2029.

Guidance for Adjusted(3) diluted EPS assumes diluted weighted-average shares outstanding of approximately 5.74 billion shares, and assumes no share repurchases in 2026.

| Effective Tax Rate on Adjusted(3) Income | ~15.0% | | | | ~15.0% |

| Adjusted(3) R&D Expenses ($ in billions) | $10.5 to $11.5 | | | | $10.5 to $11.5 |

| Adjusted(3) SI&A Expenses ($ in billions) | $12.5 to $13.5 | | | | $12.5 to $13.5 |

The one-time costs to achieve the savings associated with this phase of the program are expected to be approximately $4.0 billion, with approximately 60% of non-cash expenditures for accelerated depreciation and asset write-downs and 40% of cash expenditures for severance, implementation and exit costs.

Pfizer expects one-time costs to achieve the additional savings to be incurred through 2029 and to total approximately $2.0 billion, primarily representing cash expenditures for digital enablement, implementation and severance.

■Raises Full-Year 2026 Revenue Guidance(2) by $500 Million at the Midpoint to a Range of $60.5 to $62.5 Billion

Current financial guidance does not anticipate any share repurchases in 2026.

We continue to expect approximately $700 million in savings from our phase I of our manufacturing optimization program this year, with approximately $175 million realized in this quarter.

We are targeting approximately 20 pivotal study starts, eight key data readouts, and four regulatory decisions this year.

Roughly half our anticipated key data readouts and regulatory decision in 2026 are expected to come from oncology, where we are advancing multiple programs across areas such as breast, genitourinary, thoracic, gastrointestinal, and blood cancer.

We are targeting approximately 20 pivotal study starts, eight key data readouts, and four regulatory decisions this year.

This gives us greater confidence that starting in 2029, we will enter a five-year period of high single-digit revenue CAGR.

As a result of this settlement, revenues are now expected to remain relatively stable from 2028 through mid-2031.

We expect additional savings of $700 million in 2026 and $200 million in 2027 from phase I of the manufacturing optimization program, for a total of $1.5 billion in savings by the end of 2027.

We remain committed to achieving the expected $5.7 billion of total net savings from our cost realignment program by the end of 2026, at which time we will have met our savings commitment under the program.

At the same time, we're investing about $11 billion in R&D, so we're being able to be more productive in the infrastructure across R&D and take on more substrate to be able to focus on creating medicines for the end of the decade and beyond.

As previously communicated, the R&D savings achieved in 2025 under the cost realignment program is expected to be reinvested in 2026 and is reflected in our 2026 R&D guidance range.

Our COVID products are expected to trend lower again in 2026, with revenues of approximately $5 billion.

We continue to expect stable revenue contributions from our non-COVID product portfolio, which incorporates an expectation of approximately $1.5 billion in revenue compression due to products impacted by anticipated generic entry in 2026.

We continue to expect stable revenue contributions from our non-COVID product portfolio, which incorporates an expectation of approximately $1.5 billion in revenue compression due to products impacted by anticipated generic entry in 2026.

Revenues at the midpoint, excluding COVID and LOE, LOE products, are expected to grow approximately 4% operationally year-over-year.

2026 Adjusted(3) diluted EPS guidance primarily reflects our expected revenues, anticipated stable gross and operating margins versus full-year 2025, and an anticipated higher tax rate on Adjusted(3) income versus full-year 2025.

2026 Adjusted(3) diluted EPS guidance primarily reflects our expected revenues, anticipated stable gross and operating margins versus full-year 2025, and an anticipated higher tax rate on Adjusted(3) income versus full-year 2025.

Financial guidance for Adjusted(1) diluted EPS is calculated using approximately 5.71 billion weighted-average shares outstanding in 2025 and approximately 5.74 billion weighted-average shares outstanding in 2026, and assumes no share repurchases in 2025 or 2026.

| Effective Tax Rate on Adjusted(1) Income | Approximately 11% | Approximately 15% |

| Adjusted(1) Diluted EPS | $3.00 – $3.15 | $2.80 – $3.00 |

| Adjusted(1) R&D Expenses ($ in billions) | $10.0 – $11.0 | $10.5 – $11.5 |

The company anticipates full-year 2026 Adjusted(1) R&D expenses to be in the range of $10.5 to $11.5 billion, reflecting continued focus on prioritization in key therapeutic areas and maximizing the development of PF-08634404 (a PD-1 x VEGF bispecific antibody in-licensed from 3SBio) as well as multiple clinical programs from Metsera.

| COVID-19 Products | ~$6.5 | ~$5.0 |

Pfizer anticipates full-year 2026 revenues to be in the range of $59.5 to $62.5 billion, while full-year 2025 revenue guidance(2) is revised to approximately $62.0 billion from the range of $61.0 to $64.0 billion previously.

| Adjusted(1) SI&A Expenses ($ in billions) | $13.1 – $14.1 | $12.5 – $13.5 |

Pfizer anticipates full-year 2026 Adjusted(1) SI&A expenses to be in the range of $12.5 to $13.5 billion, reflecting ongoing progress with our Cost Realignment Program.

Consequently, total 2026 Adjusted(1) SI&A and R&D expenses are expected to be in the range of $23.0 to $25.0 billion.

As a reminder, in total for these programs, we expect approximately $7.7 billion in savings by the end of 2027 to drive operational efficiencies, strengthening our business with the potential of contributing significantly to our bottom line over this period.

And our effective tax rate to be approximately 11%.

Additionally, we expect another $0.05 of dilution in 2026 from the 3SBio deal, which closed in the third quarter.

Specifically, we currently expect the Metsera transaction to be approximately $0.16 diluted to 2026 adjusted EPS.

In addition, we remain on track to deliver on our goal of at least $4.5 billion in cumulative net cost savings from our ongoing cost realignment program by the end of this year.

Of these savings, approximately $500 million identified in R&D will be reinvested in the pipeline, which we expect by the end of 2026.

We continue to expect full year 2025 revenues to be in the range of $61 billion-$64 billion.

On track to deliver anticipated R&D re-organization cost savings of approximately $500 million to be fully realized by the end of 2026, with savings to be reinvested in the pipeline.

The first phase of the Manufacturing Optimization Program is on track to deliver approximately $1.5 billion in net cost savings by the end of 2027, contributing savings in third-quarter 2025.

An additional approximately $1.2 billion of anticipated net cost savings, primarily in SI&A, is expected to be fully achieved by the end of 2027.

■On Track to Deliver Approximately $7.2 Billion in Overall Anticipated Net Cost Savings from Previously Announced Cost Improvement Initiatives(4) by End of 2027, Driving Productivity Gains and Operating Margin Expansion