Pfizer’s Earnings Call: SV Trial Readouts and Mevrometostat Timelines Don’t Match

Date of Call: Aug 4, 2026

Financials Results

• Revenue: $15B, up 1% year-over-year operationally; excluding COVID, underlying business grew 5%
• EPS: $0.77 adjusted diluted EPS, exceeding expectations
• Gross Margin: 76% adjusted gross margin
• Operating Margin: 35% adjusted operating margin

Guidance:

• Raised midpoint of full-year 2026 revenue guidance by $0.5B to a range of $60.5B-$62.5B.
• Reaffirmed adjusted diluted EPS guidance of $2.80-$3.00 per share.
• Expect adjusted gross margin in the mid-70s range for the full year.
• Expects to deliver most of the anticipated $7.2B in total net cost savings by end of 2026.
• Anticipates additional $2.5B in net cost savings from 2027-2029.
• Confident in returning to high single-digit revenue growth towards the end of the decade.

Business Commentary:

Revenue Growth and Strategic Acquisitions:

• Pfizer reported revenue of $15 billion for the second quarter of 2026, exceeding expectations with a year-over-year operational increase of 1%. Excluding COVID products, the underlying business delivered 5% operational revenue growth.
• The growth was driven by strategic acquisitions, including Seagen, Metsera, and Biohaven, which contributed significantly to the revenue increase, particularly in oncology and obesity segments.

Oncology and R&D Progress:

• The company's oncology product, PADCEV, showed strong performance with a 20% revenue growth, supported by FDA approval expansion and positive clinical trial results.
• Pfizer's R&D efforts achieved multiple milestones, including three regulatory approvals and six key data readouts, driven by a focus on innovative therapies and strategic investments in oncology.

Cost Management and Savings Initiatives:

• Pfizer's adjusted operating margin was strong at 35%, reflecting effective cost management and ongoing cost control measures.
• The company expects total net cost savings of approximately $9.7 billion through 2029, driven by productivity enhancements and manufacturing optimization programs.

Pipeline and Future Growth Strategy:

• Pfizer advanced its R&D pipeline with critical milestones, including eight pivotal study starts, and raised its revenue guidance for 2026, reflecting confidence in future growth.
• The strategic focus on high single-digit revenue growth from 2029 onwards is supported by investments in key therapeutic areas like oncology, obesity, and vaccines.

Sentiment Analysis:

Overall Tone: Positive

• CEO Albert Bourla stated, 'We had another strong quarter of execution, driving continued strategic progress.' The company exceeded revenue and EPS expectations for the ninth consecutive quarter and raised full-year revenue guidance. Management expressed confidence in returning to growth post-2028 and in the R&D pipeline, highlighting 'significant progress' and 'disciplined execution.'

Q&A:

• Question from Evan Seigerman (BMO Capital Markets): Ahead of the MEVPRO-1 data, help us define how you view success. Does this study need to reproduce the phase I magnitude of benefit or demonstrating a clinically meaningful delay in AR pathway resistance be enough?
  Response: Success is defined as demonstrating a clinically meaningful benefit of approximately 30% over standard of care, with a hazard ratio-based statistical analysis plan.

• Question from Chris Schott (J.P. Morgan): First, I wanted to dig into the $1.5 billion increase in the non-COVID guidance. Can you just comment on how much of this is coming from ELIQUIS versus the rest of the business? Second question was just on PADCEV. I guess with the further label expansion, just talk a little bit about how we should think about growth for that asset from here going forward.
  Response: The raised guidance reflects strong performance across the non-COVID portfolio, including ELIQUIS and launched/acquired products, with 27% growth excluding one-time 2025 impacts. For PADCEV, growth will moderate as it reaches most eligible patients, with upside from MIBC and potential bladder-sparing studies.

• Question from Umer Raffat (Evercore ISI): I just wanted to focus on the EZH2 for a quick second and maybe a two-part question. Chris, I appreciate the readout is not till 4Q, but I just wanted to confirm that the trial was fully enrolled as of May, not as of last December, and that you have not hit those 302 PFS events yet. Amir, in a scenario this trial hits, how large a commercial opportunity is this?
  Response: The MEV-Pro1 trial is fully enrolled, and events have not been reached. A successful outcome could scale across the entire disease continuum and globally, representing a significant opportunity for Pfizer.

• Question from Geoff Meacham (Citi): I guess one for Chris on berobenatide. What are you guys ultimately looking for in the combo studies? Is it quarterly dosing? Is it indications outside of diabesity? Is it rid of TruTide like efficacy? Wanted to get some perspective on that, and then how are you looking at the tolerability bar from a competitive standpoint?
  Response: The combo studies aim to see efficacy beyond berobenatide alone, with monthly dosing and improved tolerability, with data expected in 2027.

• Question from Akash Tewari (Jefferies): Can you talk about the efficacy advantages atirmociclib showed versus CDK4/6 in FOURLIGHT-1? Are we seeing signs of an early onset PFS separation... What’s your current plan for first-line adjuvant with this molecule?... There’s been a proposal from the CMS to cut reimbursement for 340B hospital payments... How would that affect your oncology portfolio?
  Response: Atirmociclib showed a 40% reduction in risk of disease progression. The adjuvant study design will be released later this year, with plans to start by end of 2026. On 340B, Pfizer is actively engaging but it is too early to predict the impact of proposed changes.

• Question from Terence Flynn (Morgan Stanley): ...wondering what would have to transpire in order for you and the board to consider a cut to the dividend?... Seems like that’s somewhat constraining as you think about the opportunity set...
  Response: Management expressed extreme confidence that the dividend will be maintained and will eventually grow after the LOE period.

• Question from Trung Huynh (RBC): Just a couple on immunology, please. The vitiligo program, you’ve disclosed some of the TRANQUILLO 2 data there in the slides. I didn’t see the TRANQUILLO 1 findings. Perhaps you can summarize the data there. Is there a consistency between those two pivotal trials?... There’s an asthma one and a COPD one. Perhaps can you talk about your strategic thinking there?
  Response: Full TRANQUILLO 1 and 2 data will be presented at a conference later this year; both doses showed clinically meaningful and statistical results. For tilrekimig, the tri-specific asset, Pfizer plans four phase III studies, aiming for best-in-class differentiation in atopic dermatitis and potential in asthma/COPD.

• Question from Steve Scala (TD Cowen): First, on tilrekimig, can you confirm that the trial versus Dupixent will be a true head-to-head trial powered for superiority on first line or in first-line bio native patients? Secondly, given small changes in the risks sections language of the release, it looks like Pfizer signed a Pfizer voluntary agreement with the U.S. government to lower drug costs... were there any major changes in the final version versus earlier versions, and why did it take so long?
  Response: The trial versus Dupixent will be a phase III head-to-head study powered for superiority. The voluntary agreement with the U.S. government is consistent with industry-wide understandings, and Pfizer is pleased with the outcome.

• Question from Asad Haider (Goldman Sachs): Just back to COVID, just given that the trend has continued to be lower than expected... what you’re expecting in terms of the long-term trajectory of the franchise... Then just a quick follow-up, Albert, on BD. Just would be curious to hear any updated thoughts on how you’re thinking about utilizing that lever...
  Response: COVID vaccine revenues are expected to be stable, while Paxlovid correlates with infection rates; this year's low infections were offset by strong non-COVID performance. For business development, remaining capacity will be used strategically in oncology, immunoinflammation, obesity, and vaccines to support long-term growth targets.

Contradiction Point 1

Readout Timeline for Sigvotatug Vedotin (SV) Pivotal Trial

Contradiction in the expected timeline for key lung cancer asset SV, impacting investor expectations for oncology readouts.

Courtney Breen (Bernstein) - Courtney Breen (Bernstein)

2026Q2: The sigvotatug vedotin (SV) program includes: A phase III study in second-line NSCLC... with a readout expected mid-year. - Chris Boshoff(Executive, Research & Development/Chief Scientific Officer)

How does the new phase III allcomers trial for sigvotatug vedotin in the frontline setting compare to the Symbiotic-Lung-01 study? - David Risinger (Leerink Partners)

2026Q1: A phase III study in second-line non-squamous NSCLC... is expected to read out in the middle or second half of 2026. - Chris Boshoff(Executive, Research & Development/Chief Scientific Officer)

Contradiction Point 2

Readout Timeline for Mevrometostat Pivotal Trial

Contradiction in the expected timeline for key prostate cancer asset mevrometostat, affecting investor outlook on oncology milestones.

Umer Raffat (Evercore ISI) - Umer Raffat (Evercore ISI)

2026Q2: The trial is fully enrolled, and the pre-specified events have not been reached as outlined in the statistical analysis plan. - Chris Boshoff(Executive, Research & Development/Chief Scientific Officer)

Was the mevrometostat trial (MEVPRO-1) fully enrolled as of May and have the 302 PFS events not yet been reached? - David Risinger (Leerink Partners)

2026Q1: A phase III trial in patients post-abiraterone... will read out mid- to second half of 2026. - Chris Boshoff(Executive, Research & Development/Chief Scientific Officer)

Contradiction Point 3

Commercial Opportunity and Timeline for Mevrometostat (Prostate Cancer Asset)

Inconsistent messaging on the asset's market potential and commercial timeline, affecting valuation and investment focus.

Umer Raffat (Evercore ISI) - Umer Raffat (Evercore ISI)

2026Q2: The opportunity could scale across the entire prostate cancer disease continuum... It is a 100% global opportunity for Pfizer, distinct from XTANDI, with potential in both U.S. and ex-U.S. markets. - Vamil Divan(CFO)

What is the potential market size for mevrometostat if successful? - Vamil Divan (Guggenheim Securities)

2025Q3: The MIBC indication, pending regulatory approval, could open a ~22,500 patient population and drive future growth. - Aamir Malik(CFO)

Contradiction Point 4

GLP-1 Combination Therapy Strategy and Development Timeline

Inconsistent messaging on the dosing frequency and development stage of the GLP-1 and amylin combination, creating uncertainty around the pipeline's differentiation.

Geoff Meacham (Citi) - Geoff Meacham (Citi)

2026Q2: The amylin combination (nirubenatide + PF-08653945) is designed for monthly dosing. The ongoing phase I/IIa studies determined safety and PK; the controlled phase IIb (Solace 1) study, expected to read out in 2027, will assess efficacy. - Chris Boshoff(Chief Scientific Officer)

In berobenatide combo studies, what key endpoints (e.g., quarterly dosing, efficacy vs. tirzepatide, tolerability) are you targeting, and how does the tolerability bar compare competitively? - Umer Raffat (Evercore ISI)

2025Q4: The combination of PF-3944 (monthly GLP-1) and PF-3945 (monthly amylin) is injectable, not oral. Oral GLP-1 and GIPR programs are separate. - Chris Boshoff(Chief Scientific Officer)

Contradiction Point 5

Status and Timeline for the Metsera Acquisition

The status of the acquisition and the associated legal challenges were portrayed differently, impacting corporate strategy perception and deal execution.

Asad Haider (Goldman Sachs) - Asad Haider (Goldman Sachs)

2026Q2: The company is strategic and focused on areas like oncology, immunoinflammation, obesity, and vaccines. Recent deals (Seagen, Metsera, Biohaven) are performing well. - Albert Bourla(CEO)

How do you plan to utilize the remaining $6-7 billion in BD capacity? - David Risinger (Leerink Partners)

2025Q3: Due to pending legal issues, detailed commentary is limited. Pfizer believes Novo Nordisk's bid is illegal and anticompetitive... Legal action is being pursued to enforce the merger agreement. - Albert Bourla(CEO)