Pfizer Drops to 137th Place in Market Activity as Patent Expirations and Falling Revenue Impact Performance

Market Overview

On February 25, 2026, Pfizer Inc. (PFE) ended the trading session down 0.18%, with shares exchanging hands at a value of $0.88 billion, placing it 137th in terms of trading activity. This slight dip came amid mixed reactions to the company’s latest earnings and outlook, even though Pfizer outperformed the broader healthcare sector over certain periods. The company’s market value remains robust at around $154 billion, underscoring its status as a leading large-cap pharmaceutical firm.

Main Influences

For the fourth quarter of 2025, Pfizer reported earnings per share of $0.66, beating the consensus estimate of $0.57. Revenue reached $17.6 billion, also surpassing the expected $16.93 billion. Despite these beats, the stock dropped 4.54% in pre-market trading, reflecting investor unease about the company’s future growth prospects. Revenue for the quarter slipped 1.2% compared to the previous year, highlighting ongoing challenges as sales from pandemic-related products decline. Sales of Paxlovid and Comirnaty fell sharply—by approximately 70% and 35%, respectively—fueling concerns about future revenue stability.

Pfizer’s outlook for 2026 added to investor caution. The company forecasted revenue between $59.5 and $62.5 billion and adjusted EPS in the range of $2.80 to $3.00, both down from 2025’s $62.6 billion in revenue and $3.22 adjusted EPS. These projections include an estimated $5 billion from COVID-19 products and anticipate $1.5 billion in losses due to expiring patents. The anticipated revenue decline, along with a 2% operational drop in 2025, points to ongoing challenges from patent expirations and reduced demand for pandemic-era treatments.

To counter these headwinds, Pfizer outlined cost reduction plans targeting $5.7 billion in annual savings by 2026. The company also highlighted investments in research and development and the use of artificial intelligence to boost productivity. However, analysts expressed doubts about the long-term effectiveness of these measures, especially as profit margins shrink. Pfizer’s net margin stands at 12.42%, with a return on equity of 20.25%, but a debt-to-equity ratio of 0.62 and a payout ratio of 126.47%—driven by its $1.72 annual dividend—have raised questions about its financial flexibility.

Analyst opinions on Pfizer remain divided. HSBC and Scotiabank maintained “buy” ratings with price targets of $29–$30, while Bank of America and Morgan Stanley reduced their targets to $27–$28 and kept “neutral” or “equal weight” ratings. RBC Capital began coverage with an “underperform” rating, citing weak growth outlooks. The average target price of $27.84 suggests limited potential for near-term gains, with analysts warning of risks from patent losses and heightened competition in core therapeutic areas.

Pfizer’s dividend yield of 6.3% continues to attract income investors, but the payout ratio above 100% signals possible sustainability issues. Institutional investors, such as Bradley Foster & Sargent Inc. with a $14.98 million stake, show ongoing faith in Pfizer’s long-term prospects. Still, the 0.18% share price decline on February 25 reflects broader market caution, as the healthcare sector faces valuation challenges and regulatory pressures.

Looking ahead, Pfizer’s strategic focus on oncology, immunology, and AI-driven research and development is intended to reignite growth. However, the company must successfully manage patent expirations, protect profitability, and deliver on its cost-saving initiatives to justify its current valuation. At present, Pfizer’s stock performance highlights the tension between short-term resilience and longer-term uncertainty.