Key Stats for Pfizer Stock
- Price Change for Pfizer stock: -3.4%
- $PFE Share Price as of Dec. 16: $25.53
- 52-Week High: $27.69
- $PFE Stock Price Target: $28.75
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Pfizer (PFE) stock fell over 3% on Tuesday after the company issued modest 2026 guidance that came in below analyst expectations.
The pharmaceutical giant is facing a familiar challenge: declining sales of COVID-19 products and upcoming patent expirations for major drugs.
The company expects adjusted earnings of $2.80 to $3.00 per share next year, slightly below the Street’s $3.05 estimate. Revenue guidance of $59.5 billion to $62.5 billion would be essentially flat compared to Pfizer’s revised 2025 outlook of $62 billion.
Two significant headwinds are weighing on the outlook.
- First, COVID products are expected to drop by roughly $1.5 billion year-over-year to $5 billion in total sales.
- Second, another $1.5 billion hit is coming from drugs losing patent protection, including blockbusters like the pneumonia vaccine Prevnar, facing new competition.
CFO Dave Denton noted that patent expirations will primarily hit in 2026 and 2028, with about $17 billion in total revenues at risk from lost exclusivity.
Meanwhile, Eliquis—one of Pfizer’s top sellers—will see lower Medicare prices starting next year following government negotiations under the Inflation Reduction Act.
See analysts’ growth forecasts and price targets for Pfizer stock (It’s free!) >>>
What the Market Is Telling Us About Pfizer Stock
The sell-off in Pfizer stock suggests investors aren’t convinced the company’s recent deals will pay off quickly enough.
While Pfizer has made big moves—including a $10 billion acquisition of obesity biotech Metsera and the massive $43 billion purchase of Seagen—these investments are still early. Metsera’s pipeline, for example, is mostly in early-stage development.
JPMorgan analyst Chris Schott called the guidance “largely expected,” noting that restructuring efforts would partially offset COVID headwinds and R&D investments.
Pfizer did exceed its cost-saving goals for 2025 and expects to deliver most of its $7 billion cost-cutting target by next year.
BMO Capital Markets analyst Evan Seigerman suggested the conservative outlook leaves room for adjustments given “vaccine policy uncertainty” under HHS Secretary Robert F. Kennedy Jr., a known vaccine skeptic.
CEO Albert Bourla pushed back during the call, saying negative FDA comments around vaccines “don’t have merit” and won’t change Pfizer’s long-term vaccine investments.
The company also faces margin pressure from its pricing deal with the Trump administration, which requires it to sell drugs to Medicaid at the lowest international prices.
In exchange, Pfizer gets a three-year exemption from pharmaceutical tariffs. Denton confirmed “price compression and margin compression” are baked into 2026 guidance.
While Pfizer stock looks weak in the near term, management remains focused on positioning the company for growth by 2029-2030 as new products ramp and patent cliffs ease.
For now, investors appear willing to wait on the sidelines.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Pfizer Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
