Pfizer (PFE -0.20%) has a shockingly high dividend yield of 6.8%. The S&P 500 Index (^GSPC +0.05%) has a 1% yield, and the average pharmaceutical stock's yield is roughly 1.5%. Given that huge disparity, it looks like Pfizer's yield is too good to be true.
There are reasons for the high yield that need to be monitored. However, management doesn't seem too worried about the dividend. Here are some reasons why, and why you might want to buy ultra-high-yield Pfizer.
Pfizer's management is focused on maintaining the dividend Pfizer's dividend, like all dividends, is paid at the discretion of the board of directors. That said, the company's management team has been very clear about its support for the dividend. The dividend was mentioned directly on two slides in the first-quarter 2026 earnings presentation. One slide, focused on 2026 capital allocation priorities, stated that the company wants to "maintain and grow our dividend." A second slide, directed at longer-term growth, made "maintain dividend" a stated goal.
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If the board was actively considering cutting the dividend, management wouldn't likely have mentioned the dividend on those two slides. Meanwhile, it is important to examine what supports the dividend. The answer isn't earnings, which are under pressure right now, because a company's dividend payments appear on its cash flow statement. The number is fairly large for Pfizer, with the first-quarter dividend payment totaling $2.445 billion. Annualize that, and you get nearly $10 billion.
The company generated $2.6 billion from operating activities, which actually covers the dividend. However, the dividend isn't the only thing the company has to pay for. After paying dividends, paying down debt, and investing in its business, the company's cash balance at the end of the first quarter was higher than at the start. And not just a little higher, $560 million higher. The source of the extra cash was Pfizer selling long-term investments. Turning to the balance sheet, the company still has $11.3 billion in long-term investments, in addition to $1.7 billion in cash.
Watch Pfizer's dividend, but there's plenty to support it This isn't meant to suggest that investors should simply ignore the headwinds Pfizer is facing today. While the company looks capable of supporting the dividend, investors are worried about the pharmaceutical company's future, which has pushed the stock lower and the yield higher. That said, most of the problems the company faces are normal for the pharmaceutical industry.
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For example, Pfizer has several blockbuster drugs set to lose patent protection. However, its research and development haven't yet produced new drugs to fill the gap. In fact, the company has clearly fallen behind peers in the hot GLP-1 weight-loss space, after it had to stop work on a drug there in 2025. The thing is, R&D doesn't work on a timeline, even though patent expirations do. Sometimes things just don't line up as well as investors would like.
Pfizer has a long and successful history of developing drugs. Notably, in the case of GLP-1 drugs, it quickly adjusted and bought another company with a more attractive drug candidate. And it has numerous drugs working through the approval process beyond it, as well.
Think long-term with Pfizer Pfizer is still a well-run drug company. It is just working through a difficult period, which has Wall Street worried about the future. If you think long-term, however, you may want to consider buying Pfizer and its outsize yield while everyone else is scared. The company is clearly standing behind the dividend, and when you dig a little deeper, it appears to have the wherewithal to keep supporting it.
We can separate high-yield dividend stocks into two broad categories. The first group consists of companies with stable businesses that generate consistent cash flow and are very likely to continue paying -- and perhaps raising -- their dividends for the foreseeable future. The second are distressed corporations. They boast high yields because their share prices have fallen substantially, reflecting weak business fundamentals.
Many investors would put Pfizer (PFE +0.77%) in the second group. The drugmaker's shares have lost significant value over the past five years, as the company has failed to sustain the amazing success it achieved in the coronavirus market. However, there is much more to the story. Let's discuss why Pfizer's 7% forward yield is more sustainable than it appears at first glance.
The business is strengthening Pfizer's revenue and earnings have declined over the past five years, while it has maintained and even increased its dividend. The company's payout ratio has soared as a result -- it is currently about 127%. That looks unsustainable. But Pfizer's cash payout ratio, a much better measure of whether the company can maintain its dividend program intact, looks less scary at 107.7%. Management is confident of the company's ability to sustain, and even increase, the payout moving forward. That isn't just wishful thinking: Pfizer could improve its business in the coming years and eventually post much stronger financial results.
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Consider that Pfizer boasts highly promising programs in the pipeline that will yield brand-new approvals and label expansions. For instance, the company's Padcev is a cancer medicine that is currently one of its better-performing products. On July 10, Padcev earned approval for the treatment of muscle-invasive bladder cancer in combination with Merck's (MRK +2.42%) Keytruda. Padcev was granted the green light regardless of whether patients are eligible for Cisplatin, a chemotherapy drug for bladder cancer that is effective but comes with significant side effects. That's a big deal since many drugs for bladder cancer (including Padcev, initially) aren't approved regardless of Cisplatin eligibility.
Pfizer sees a large addressable market here, given Padcev's strong phase 3 clinical trial results: It reduced the risk of death or recurrence by 50% compared to the current standard of care in cisplatin-eligible patients with bladder cancer, when combined with Keytruda. This indication could add hundreds of millions of dollars -- perhaps over $1 billion -- to Padcev's peak sales. That may not seem like a lot for a company that generated over $60 billion in revenue last year, but it could land several such regulatory wins, which will add label expansions across its drug portfolio and eventually improve sales growth.
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Pfizer's brand-new products may have an even bigger impact. Consider the company's most promising opportunity: the weight-loss market. Pfizer boasts several attractive and highly differentiated anti-obesity candidates. MET-097i, a GLP-1 that is perhaps the most promising among the company's anti-obesity products, is currently being investigated in phase 3 studies as a long-acting candidate. It showed promising mid-stage results, including with monthly dosing.
Provided MET-097i gains approval, it could expand the market by attracting patients hesitant to use GLP-1 medicines due to their weekly dosing schedules or side effects (it also demonstrated strong tolerability). Pfizer is also working on a couple of oral pills for weight loss, yet another category that has proved highly successful. Looking beyond weight loss, Pfizer has an attractive oncology pipeline. The bulk of the company's phase 3 studies are in this area, and with exciting products like PF'4404 -- which belongs to a newer class of medicines that could help revolutionize cancer treatments -- Pfizer's cancer business could improve significantly over the medium term. True, Pfizer still faces some headwinds.
The company will lose patent exclusivity for some key products by the end of the decade, including Eliquis, an anticoagulant. However, Pfizer's deep lineup and equally impressive pipeline could allow it to meet its goal of increasing revenue at a high single-digit compound annual growth rate over the five years starting in 2029. That may not seem like such a big deal, but for a company that has been struggling in recent years, it would be an accomplishment. In the meantime, Pfizer's dividend program should remain intact.
Key Takeaways Pfizer's sNDA for Talzenna plus Xtandi received FDA priority review in HRR gene-mutated mCSPC.The application seeks to expand Talzenna combo use to an earlier stage of metastatic prostate cancer.Pfizer expects an FDA decision on the Talzenna plus Xtandi sNDA in the last quarter of 2026. Pfizer (PFE - Free Report) announced that the FDA has accepted the supplemental new drug application (sNDA) for Talzenna (talazoparib), an oral PARP inhibitor, in combination with Xtandi (enzalutamide), an androgen receptor pathway inhibitor (ARPI), for an expanded use in prostate cancer.
The sNDA is seeking approval of Talzenna in combination with Xtandi for treating men with homologous recombination repair (HRR) gene-mutated metastatic castration-sensitive prostate cancer (mCSPC), also known as metastatic hormone-sensitive prostate cancer (mHSPC).
With the FDA granting a priority review to the sNDA, a decision from the regulatory body is expected in the last quarter of 2026.
If approved, the sNDA would expand the use of Talzenna plus Xtandi to mCSPC, an earlier stage of the disease. Prostate cancer remains the second most common cancer among men globally.
Talzenna was initially approved in the United States, the EU and several other regions as a monotherapy for adults with deleterious or suspected deleterious gBRCAm HER2-negative locally advanced or metastatic breast cancer. Later, Talzenna, in combination with Xtandi, received FDA approval for treating men with HRR gene-mutated metastatic castration-resistant prostate cancer (mCRPC). The regimen is also approved in the EU for adults with mCRPC in whom chemotherapy is not clinically indicated. The combo is currently authorized in around 60 countries, with indications varying by region.
PFE’s Price PerformanceYear to date, shares of Pfizer have gained 3.1% compared with the industry’s rally of 12.2%.
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PFE’s sNDA Based on Phase III TALAPRO-3 StudyThe sNDA for the Talzenna plus Xtandi combo in mCSPC was based on data from the phase III TALAPRO-3 study.
Data from the same showed that treatment with Talzenna plus Xtandi reduced the risk of radiographic progression or death by 52% versus placebo plus Xtandi, with consistent benefit seen across patients with BRCA and non-BRCA HRR gene alterations.
The safety profile was similar to the known profiles of each agent, while no new safety signals were reported either.
The phase III TALAPRO-3 study enrolled 599 patients with mCSPC, who had received at most three months of androgen deprivation therapy (chemical or surgical), with or without an approved ARP inhibitor in this setting. Eligible patients in the study were randomized to receive Talzenna 0.5 mg/day plus Xtandi 160 mg/day, or placebo plus Xtandi 160 mg/day.
A regulatory filing seeking approval of Talzenna plus Xtandi in HRR gene-mutated mCSPC is also currently under review in the European Union.
PFE’s Zacks Rank & Stocks to ConsiderPfizer currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Kiniksa Pharmaceuticals (KNSA - Free Report) and Liquidia Corporation (LQDA - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 earnings per share have risen from $1.24 to $1.25, while estimates for 2027 have increased from $1.70 to $1.76 during the same time. KNSA shares have soared 51.3% year to date.
Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions, with the average surprise being 1.53%.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $4.92 during the same time. LQDA shares have surged 152.4% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.
ABN Amro Investment Solutions lifted its holdings in shares of Pfizer Inc. (NYSE:PFE – Free Report) by 11.9% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 313,794 shares of the biopharmaceutical company’s stock after purchasing an additional 33,262 shares during the quarter. ABN Amro Investment Solutions’ holdings in Pfizer were worth $8,811,000 as of its most recent SEC filing.
Other institutional investors have also recently bought and sold shares of the company. Evolution Wealth Management Inc. grew its position in Pfizer by 132.2% during the first quarter. Evolution Wealth Management Inc. now owns 994 shares of the biopharmaceutical company’s stock valued at $28,000 after acquiring an additional 566 shares during the period. Horizon Financial Services LLC increased its position in Pfizer by 174.8% during the 4th quarter. Horizon Financial Services LLC now owns 1,014 shares of the biopharmaceutical company’s stock worth $25,000 after purchasing an additional 645 shares in the last quarter. Godfrey Financial Associates Inc. purchased a new position in Pfizer in the fourth quarter valued at approximately $26,000. YANKCOM Partnership purchased a new position in Pfizer in the fourth quarter valued at approximately $28,000. Finally, HFM Investment Advisors LLC grew its stake in Pfizer by 61.0% during the fourth quarter. HFM Investment Advisors LLC now owns 1,127 shares of the biopharmaceutical company’s stock worth $28,000 after buying an additional 427 shares during the period. 68.36% of the stock is currently owned by hedge funds and other institutional investors.
Pfizer News Summary Here are the key news stories impacting Pfizer this week:
Positive Sentiment: Pfizer’s TALZENNA plus XTANDI combination received FDA Priority Review for men with HRR gene-altered metastatic castration-sensitive prostate cancer, which could expand the drug pair’s approved use and support oncology revenue growth if approved. Article Title Positive Sentiment: Some commentary highlights Pfizer as an undervalued healthcare name, suggesting investors may be overlooking its earnings power and pipeline optionality. Article Title Neutral Sentiment: Analysts are also watching Pfizer’s non-oncology portfolio this earnings season, with expected strength in Eliquis and Vyndaqel offset by continued weakness in COVID-related products. Article Title Negative Sentiment: Pfizer is facing expanded patent litigation tied to mRNA lipid nanoparticle technology, adding legal uncertainty around its COVID-19 vaccine business and creating a potential overhang on sentiment. Article Title Negative Sentiment: Broader U.S. drug-policy headlines, including proposed tariffs on generic medicines, may keep pressure on the pharmaceutical sector even though the direct impact on Pfizer is less clear than for generic-focused peers. Article Title Wall Street Analyst Weigh In A number of equities analysts have recently commented on PFE shares. Citigroup raised their target price on shares of Pfizer from $26.00 to $27.00 and gave the company a “neutral” rating in a research note on Wednesday, April 29th. Morgan Stanley raised their price objective on Pfizer from $27.00 to $28.00 and gave the company an “equal weight” rating in a research report on Friday, April 10th. Bank of America decreased their target price on Pfizer from $27.00 to $26.00 and set a “neutral” rating for the company in a research report on Friday, July 10th. JPMorgan Chase & Co. lowered their target price on Pfizer from $30.00 to $28.00 and set a “neutral” rating for the company in a research note on Wednesday, July 8th. Finally, Royal Bank Of Canada upgraded Pfizer from an “underperform” rating to a “sector perform” rating and set a $25.00 price target for the company in a report on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $28.50.
Check Out Our Latest Report on Pfizer
Pfizer Stock Performance NYSE:PFE opened at $24.84 on Thursday. The firm has a 50-day moving average of $25.14 and a two-hundred day moving average of $26.18. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.25 and a quick ratio of 0.94. The stock has a market cap of $141.60 billion, a P/E ratio of 18.97 and a beta of 0.35. Pfizer Inc. has a 1-year low of $23.11 and a 1-year high of $28.75.
Pfizer (NYSE:PFE – Get Free Report) last announced its earnings results on Tuesday, May 5th. The biopharmaceutical company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.72 by $0.03. The business had revenue of $14.45 billion for the quarter, compared to analyst estimates of $13.84 billion. Pfizer had a return on equity of 19.44% and a net margin of 11.83%.The company’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.92 earnings per share. Pfizer has set its FY 2026 guidance at 2.800-3.000 EPS. On average, research analysts expect that Pfizer Inc. will post 2.96 earnings per share for the current fiscal year.
Pfizer Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, July 24th will be paid a $0.43 dividend. This represents a $1.72 dividend on an annualized basis and a dividend yield of 6.9%. The ex-dividend date is Friday, July 24th. Pfizer’s dividend payout ratio is 131.30%.
Pfizer Company Profile (Free Report)
Pfizer Inc (NYSE: PFE) is a multinational biopharmaceutical company headquartered in New York City. Founded in 1849 by Charles Pfizer and Charles Erhart, the company researches, develops, manufactures and commercializes a broad range of medicines and vaccines for human health. Its activities span discovery research, clinical development, regulatory affairs, manufacturing and global commercial distribution across multiple therapeutic areas.
Pfizer’s portfolio and pipeline cover oncology, immunology, cardiology, endocrinology, rare diseases, hospital acute care and anti-infectives, along with a substantial vaccine business.
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NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) today announced that the U.S. Food and Drug Administration (FDA) accepted for Priority Review a supplemental New Drug Application (sNDA) for TALZENNA® (talazoparib), an oral poly ADP-ribose polymerase (PARP) inhibitor, in combination with XTANDI® (enzalutamide), an androgen receptor pathway inhibitor (ARPI), in men with homologous recombination repair (HRR) gene-altered metastatic castration-sensitive prostate cancer (mCSPC), also known as meta.
The Pfizer logo is seen in this illustration taken August 3, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 22 (Reuters) - Pfizer (PFE.N), opens new tab said on Wednesday the U.S. Food and Drug Administration has granted priority review to its application seeking expanded approval for its prostate cancer treatment combination.
The company sought expanded approval to use a combination of two approved drugs branded as Talzenna and Xtandi in men with metastatic castration-sensitive prostate cancer, whose tumors have acquired gene changes known as HRR mutations.
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Talzenna and Xtandi are already approved in the United States for men whose prostate cancer has spread to other parts of the body and stopped responding to hormone therapy.
For the combination drug, Pfizer said the FDA had set a target decision date in the last quarter of 2026.
Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shailesh Kuber and Pooja Desai
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Key Takeaways Pfizer's Q2 non-oncology outlook includes gains for Eliquis and Vyndaqel amid mixed portfolio trends.PFE's Comirnaty and Paxlovid sales are expected to decline on lower demand and purchases.Pfizer's Abrysvo may gain internationally, while U.S. vaccination rates remain weaker. Pfizer (PFE - Free Report) will announce its second-quarter 2026 earnings on Aug. 4, and investors will be watching the performance of its oncology business closely, as the segment generates nearly 27% of the company's total revenues. Its key cancer medicines include Ibrance, Xtandi, Lorbrena, Braftovi/Mektovi and Seagen-acquired antibody-drug conjugate, Padcev.
Apart from oncology, Pfizer has a broad portfolio spanning primary care, vaccines, inflammation and immunology, rare diseases, and other specialty therapies. These businesses are organized under the company's Primary Care and Specialty Care segments.
Here’s a closer look at the expected second-quarter performance of Pfizer’s therapies across these two non-oncology business segments.
In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) -partnered Eliquis are likely to have risen, driven by higher demand trends globally, partially offset by price and generic erosion in some ex-U.S. markets. As regards sales of key vaccine Prevnar, higher sales in ex-U.S. markets are likely to have been offset by the impact of lower demand in the United States.
The Zacks Consensus Estimate for alliance revenues from Eliquis is $1.98 billion.
The Zacks Consensus Estimate for sales of the Prevnar family of vaccines is $1.39 billion.
Pfizer records direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for the COVID-19 vaccine, Comirnaty. Revenues from Pfizer/BioNTech’s Comirnaty are likely to have declined in the second quarter due to narrower COVID-19 vaccine recommendations in the United States that have reduced Comirnaty’s eligible patient population. Sales of the antiviral pill for COVID, Paxlovid, should also have declined due to lower infection rates, which hurt demand trends and lower international government purchases.
The Zacks Consensus Estimate for direct sales and alliance revenues from Comirnaty is $278 million, while that for Paxlovid is $119.0 million.
Among the newer products, sales of the RSV vaccine, Abrysvo, are likely to have gained from launch uptake in some international markets, partially offset by weaker vaccination rates in the United States. The Zacks Consensus Estimate for sales of Abrysvo is $155 million.
In the Specialty Care unit, sales of Vyndaqel are expected to have risen as higher sales in international markets may offset lower revenues in the United States. The Zacks Consensus Estimate for sales of Vyndaqel/Vyndamax is $1.75 billion.
While sales of Xeljanz rose, those of Enbrel declined in the first quarter, a trend likely to have continued in the second quarter.
Pfizer’s Key CompetitorsIn inflammation & immunology, Pfizer’s key competitors include AbbVie, Johnson & Johnson, Amgen and Novartis. In areas such as diabetes, cardiovascular disease, obesity, and other chronic conditions, Pfizer faces competition from Eli Lilly, Novo Nordisk, Merck, AstraZeneca, and Sanofi. In vaccines, it competes primarily with Merck, GSK, Sanofi, and Moderna.
PFE’s Price Performance, Valuation and EstimatesPfizer’s stock has risen 2.8% so far this year compared with an increase of 12.7% for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 8.55 forward earnings, significantly lower than 18.88 for the industry as well as the stock’s five-year mean of 9.34.
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The Zacks Consensus Estimate for 2026 earnings has declined from $2.99 per share to $2.96 per share, while that for 2027 has declined from $2.86 per share to $2.85 per share over the past 30 days.
Image Source: Zacks Investment Research
Pfizer has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer (PFE - Free Report) ended the recent trading session at $24.75, demonstrating a -1.2% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Prior to today's trading, shares of the drugmaker had lost 0.63% lagged the Medical sector's gain of 6.06% and the S&P 500's gain of 0.55%.
The investment community will be paying close attention to the earnings performance of Pfizer in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is expected to report EPS of $0.68, down 12.82% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $14.45 billion, indicating a 1.39% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.96 per share and revenue of $61.86 billion, indicating changes of -8.07% and -1.16%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Pfizer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1% lower. Pfizer is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Pfizer is currently exchanging hands at a Forward P/E ratio of 8.47. This signifies a discount in comparison to the average Forward P/E of 16.49 for its industry.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Pfizer (PFE - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this drugmaker have returned -0.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Large Cap Pharmaceuticals industry, to which Pfizer belongs, has gained 7.8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Pfizer is expected to post earnings of $0.68 per share, indicating a change of -12.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.3% over the last 30 days.
The consensus earnings estimate of $2.96 for the current fiscal year indicates a year-over-year change of -8.1%. This estimate has changed -1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.85 indicates a change of -3.8% from what Pfizer is expected to report a year ago. Over the past month, the estimate has changed -0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Pfizer is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Pfizer, the consensus sales estimate of $14.45 billion for the current quarter points to a year-over-year change of -1.4%. The $61.86 billion and $60.09 billion estimates for the current and next fiscal years indicate changes of -1.2% and -2.9%, respectively.
Last Reported Results and Surprise HistoryPfizer reported revenues of $14.45 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.75 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $13.82 billion, the reported revenues represent a surprise of +4.56%. The EPS surprise was +5.63%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Pfizer is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Pfizer. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Dimensional Fund Advisors LP boosted its stake in Pfizer Inc. (NYSE:PFE – Free Report) by 0.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 36,422,799 shares of the biopharmaceutical company’s stock after purchasing an additional 293,029 shares during the quarter. Dimensional Fund Advisors LP owned approximately 0.64% of Pfizer worth $1,022,606,000 as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds have also added to or reduced their stakes in the company. Norges Bank purchased a new stake in shares of Pfizer in the fourth quarter worth about $1,830,986,000. Morgan Stanley grew its stake in Pfizer by 19.2% during the fourth quarter. Morgan Stanley now owns 89,113,604 shares of the biopharmaceutical company’s stock valued at $2,218,929,000 after acquiring an additional 14,342,946 shares in the last quarter. Bank of New York Mellon Corp grew its stake in Pfizer by 38.9% during the fourth quarter. Bank of New York Mellon Corp now owns 48,514,971 shares of the biopharmaceutical company’s stock valued at $1,208,023,000 after acquiring an additional 13,581,757 shares in the last quarter. Janus Henderson Group PLC increased its holdings in Pfizer by 577.5% during the 4th quarter. Janus Henderson Group PLC now owns 8,786,084 shares of the biopharmaceutical company’s stock worth $218,817,000 after acquiring an additional 7,489,189 shares during the period. Finally, Capital World Investors lifted its stake in Pfizer by 51.5% in the 4th quarter. Capital World Investors now owns 21,433,890 shares of the biopharmaceutical company’s stock worth $533,704,000 after purchasing an additional 7,287,194 shares in the last quarter. Hedge funds and other institutional investors own 68.36% of the company’s stock.
Analyst Ratings Changes Several brokerages have commented on PFE. BMO Capital Markets cut their price target on shares of Pfizer from $34.00 to $30.00 and set an “outperform” rating for the company in a report on Monday, July 13th. Citigroup upped their price target on shares of Pfizer from $26.00 to $27.00 and gave the stock a “neutral” rating in a report on Wednesday, April 29th. Royal Bank Of Canada raised Pfizer from an “underperform” rating to a “sector perform” rating and set a $25.00 price objective for the company in a research note on Tuesday, June 9th. Morgan Stanley upped their target price on Pfizer from $27.00 to $28.00 and gave the stock an “equal weight” rating in a research note on Friday, April 10th. Finally, CICC Research began coverage on Pfizer in a report on Thursday, April 16th. They issued an “outperform” rating and a $33.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Pfizer presently has a consensus rating of “Hold” and a consensus target price of $28.50.
Check Out Our Latest Research Report on Pfizer
Pfizer Price Performance PFE stock opened at $25.08 on Monday. The firm has a 50 day simple moving average of $25.21 and a two-hundred day simple moving average of $26.18. The stock has a market cap of $142.94 billion, a PE ratio of 19.15 and a beta of 0.35. Pfizer Inc. has a one year low of $23.11 and a one year high of $28.75. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.25 and a quick ratio of 0.94.
Pfizer (NYSE:PFE – Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The biopharmaceutical company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.03. Pfizer had a net margin of 11.83% and a return on equity of 19.44%. The firm had revenue of $14.45 billion for the quarter, compared to analysts’ expectations of $13.84 billion. During the same quarter last year, the company posted $0.92 EPS. The business’s quarterly revenue was up 5.4% on a year-over-year basis. Pfizer has set its FY 2026 guidance at 2.800-3.000 EPS. On average, analysts predict that Pfizer Inc. will post 2.96 EPS for the current fiscal year.
Pfizer Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Friday, July 24th will be paid a dividend of $0.43 per share. The ex-dividend date of this dividend is Friday, July 24th. This represents a $1.72 annualized dividend and a yield of 6.9%. Pfizer’s payout ratio is 131.30%.
Key Pfizer News Here are the key news stories impacting Pfizer this week:
Positive Sentiment: Recent commentary continues to focus on Pfizer’s pipeline potential, with articles asking whether the company can strengthen its growth story through new drug development and recent approvals, which could support a longer-term rebound. Can Pfizer (NYSE:PFE) Strengthen Its Pipeline Story? Positive Sentiment: Pfizer remains attractive to income-focused investors, with coverage highlighting it as a high-yield dividend stock and a potential “buy on the dip” name, which may help limit downside. 3 High-Yield Dividend Stocks to Buy and Hold Neutral Sentiment: Analysts are still modeling solid full-year earnings, but Erste Group slightly trimmed its FY2026 EPS estimate for Pfizer to $2.92 from $2.95, signaling only a small downward revision versus the consensus of $2.96. Neutral Sentiment: Another valuation-focused note said Pfizer looks “fairly priced” given mixed pipeline risks, suggesting the stock may not be obviously cheap despite its lower valuation and high dividend. Negative Sentiment: Pfizer suspended sales of Premarin vaginal cream in India because of supply challenges, adding another operational headwind for the company. Pfizer suspends sales of Premarin vaginal cream in India, citing supply challenges Negative Sentiment: Arbutus Biopharma filed international patent lawsuits against Pfizer and BioNTech over lipid nanoparticle technology used in mRNA vaccines, keeping legal risk and potential costs in focus for PFE. Arbutus Initiates International Patent Infringement Enforcement Actions Against Pfizer and BioNTech… Pfizer Company Profile (Free Report)
Pfizer Inc (NYSE: PFE) is a multinational biopharmaceutical company headquartered in New York City. Founded in 1849 by Charles Pfizer and Charles Erhart, the company researches, develops, manufactures and commercializes a broad range of medicines and vaccines for human health. Its activities span discovery research, clinical development, regulatory affairs, manufacturing and global commercial distribution across multiple therapeutic areas.
Pfizer’s portfolio and pipeline cover oncology, immunology, cardiology, endocrinology, rare diseases, hospital acute care and anti-infectives, along with a substantial vaccine business.
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Pfizer (PFE 0.36%) has not performed well in recent years, as demand for its coronavirus products has plummeted. Meanwhile, several of the company's newer launches haven't made much of an impact on its financial results, while it is racing toward an important patent cliff -- that of Eliquis, an anticoagulant and one of its best-selling drugs -- by the end of the decade. However, management has a plan to turn things around. Pfizer has a deep pipeline that could help it rejuvenate its lineup. One area the company hopes to dominate is the weight management drug market, which is growing rapidly and could exceed $100 billion in sales by the next decade. Could Pfizer become the leader in this niche?
Image source: The Motley Fool.
Pfizer's weight management candidates Pfizer had to discontinue the development of some of its internally developed anti-obesity products due to safety concerns. But it beefed up its pipeline thanks to an acquisition. In November, the pharmaceutical leader bought Metsera, a biotech with several promising weight-loss candidates, for $7 billion in cash (excluding potential additional milestone payments). Pfizer inherited Metsera's lead weight-loss asset, MET-097i, a GLP-1 medicine that appears highly promising.
In a pair of phase 2b studies, the investigational medicine demonstrated strong weight-loss efficacy -- patients on MET-097i had a mean placebo-subtracted weight loss of up to 14.1% after 28 weeks -- along with excellent tolerability. Also, MET-097i has the potential for monthly dosing, which might give it a significant advantage over the current leading weight-loss options, which are administered weekly.
MET-097i is now undergoing phase 3 clinical trials. Pfizer does have other candidates it inherited from Metsera. And the drugmaker hasn't given up on all of its internally developed programs either. One of them is an investigational weight-loss pill called PF-07976016 that is currently in phase 2 studies. Oral weight-loss medicines have brought brand-new patients to the anti-obesity market, so this is another promising candidate.
Overall, Pfizer's portfolio features several differentiated products. The company has one of the more promising pipelines in this area.
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It won't be easy to take the crown Pfizer will have to go up against many pharmaceutical giants in this field, including the current leaders, Eli Lilly (LLY +0.76%) and Novo Nordisk (NVO 2.25%). Both have highly effective drugs in their current lineups as well as deep pipelines. Take Eli Lilly, whose next-gen anti-obesity medicine, retatrutide, posted impressive phase 3 clinical trial results that rival weight loss numbers we typically see in bariatric surgeries. Retatrutide has an advantage: It is a triple agonist, which means it combats obesity by simultaneously activating three distinct hormone receptors.
As of now, there is no such drug approved by the U.S. Food and Drug Administration. Retatrutide could be the first. Novo Nordisk isn't too far behind. The company also has several triple agonists in its pipeline, including one that recently posted highly encouraging mid-stage results. Eli Lilly and Novo Nordisk also have an advantage, having been the biggest players in the adjacent diabetes market over the past few decades. Beyond the two leaders, other drugmakers are also making progress.
For instance, Amgen's (AMGN 1.40%) MariTide is undergoing phase 3 studies as a potential treatment for obesity and several other conditions. MariTide is also a long-acting therapy that could be administered monthly (or less frequently).
What does this mean for Pfizer? It's too soon to know which company will be the biggest winner in the weight loss market, but if I were a betting man, my money wouldn't be on Pfizer -- it would be on Eli Lilly. However, Pfizer does not need to dominate this area to turn its business around. There is room for multiple winners in this field, and the company is well-positioned to be one of them, given its deep pipeline.
Pfizer also has promising candidates in other therapeutic areas that should make meaningful progress over the next few years, especially in oncology. Meanwhile, several of the company's products are still posting decent sales growth. Finally, Pfizer is a terrific dividend stock. It offers a forward yield of 6.9% and has continued to increase its payouts despite the headwinds it has encountered in recent years. That makes it a top pick for investors seeking reliable, blue chip dividend stocks.
Aviance Capital Partners LLC boosted its holdings in shares of Pfizer Inc. (NYSE:PFE – Free Report) by 21.4% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 165,588 shares of the biopharmaceutical company’s stock after buying an additional 29,219 shares during the period. Aviance Capital Partners LLC’s holdings in Pfizer were worth $4,650,000 as of its most recent SEC filing.
Several other institutional investors and hedge funds have also recently bought and sold shares of PFE. Vermillion Wealth Management Inc. lifted its holdings in shares of Pfizer by 19.4% during the 1st quarter. Vermillion Wealth Management Inc. now owns 2,352 shares of the biopharmaceutical company’s stock worth $66,000 after acquiring an additional 382 shares during the period. Triad Wealth Partners LLC increased its stake in Pfizer by 1.9% in the fourth quarter. Triad Wealth Partners LLC now owns 20,466 shares of the biopharmaceutical company’s stock valued at $510,000 after acquiring an additional 386 shares during the period. Eagle Capital Management LLC raised its position in Pfizer by 0.3% in the first quarter. Eagle Capital Management LLC now owns 126,573 shares of the biopharmaceutical company’s stock worth $3,554,000 after purchasing an additional 390 shares in the last quarter. ETF Store Inc. lifted its stake in Pfizer by 3.8% during the fourth quarter. ETF Store Inc. now owns 10,913 shares of the biopharmaceutical company’s stock worth $272,000 after purchasing an additional 396 shares during the period. Finally, Delta Financial Advisors LLC lifted its stake in Pfizer by 1.6% during the first quarter. Delta Financial Advisors LLC now owns 25,266 shares of the biopharmaceutical company’s stock worth $709,000 after purchasing an additional 398 shares during the period. Institutional investors own 68.36% of the company’s stock.
Pfizer Price Performance Shares of PFE stock opened at $25.08 on Friday. Pfizer Inc. has a 52 week low of $23.11 and a 52 week high of $28.75. The stock has a market capitalization of $142.94 billion, a PE ratio of 19.15 and a beta of 0.35. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.94 and a current ratio of 1.25. The stock’s fifty day moving average is $25.21 and its 200-day moving average is $26.17.
Pfizer (NYSE:PFE – Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The biopharmaceutical company reported $0.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.72 by $0.03. The business had revenue of $14.45 billion during the quarter, compared to analysts’ expectations of $13.84 billion. Pfizer had a return on equity of 19.44% and a net margin of 11.83%.The firm’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.92 earnings per share. Pfizer has set its FY 2026 guidance at 2.800-3.000 EPS. Equities research analysts expect that Pfizer Inc. will post 2.96 EPS for the current fiscal year.
Pfizer Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Friday, July 24th will be given a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a dividend yield of 6.9%. The ex-dividend date is Friday, July 24th. Pfizer’s dividend payout ratio is presently 131.30%.
Key Stories Impacting Pfizer Here are the key news stories impacting Pfizer this week:
Positive Sentiment: Recent commentary continues to focus on Pfizer’s pipeline potential, with articles asking whether the company can strengthen its growth story through new drug development and recent approvals, which could support a longer-term rebound. Can Pfizer (NYSE:PFE) Strengthen Its Pipeline Story? Positive Sentiment: Pfizer remains attractive to income-focused investors, with coverage highlighting it as a high-yield dividend stock and a potential “buy on the dip” name, which may help limit downside. 3 High-Yield Dividend Stocks to Buy and Hold Neutral Sentiment: Analysts are still modeling solid full-year earnings, but Erste Group slightly trimmed its FY2026 EPS estimate for Pfizer to $2.92 from $2.95, signaling only a small downward revision versus the consensus of $2.96. Neutral Sentiment: Another valuation-focused note said Pfizer looks “fairly priced” given mixed pipeline risks, suggesting the stock may not be obviously cheap despite its lower valuation and high dividend. Negative Sentiment: Pfizer suspended sales of Premarin vaginal cream in India because of supply challenges, adding another operational headwind for the company. Pfizer suspends sales of Premarin vaginal cream in India, citing supply challenges Negative Sentiment: Arbutus Biopharma filed international patent lawsuits against Pfizer and BioNTech over lipid nanoparticle technology used in mRNA vaccines, keeping legal risk and potential costs in focus for PFE. Arbutus Initiates International Patent Infringement Enforcement Actions Against Pfizer and BioNTech… Analyst Upgrades and Downgrades PFE has been the topic of several analyst reports. Weiss Ratings upgraded Pfizer from a “hold (c-)” rating to a “hold (c)” rating in a research note on Wednesday, May 6th. CICC Research initiated coverage on Pfizer in a research report on Thursday, April 16th. They issued an “outperform” rating and a $33.00 price target on the stock. BMO Capital Markets dropped their price objective on Pfizer from $34.00 to $30.00 and set an “outperform” rating for the company in a research note on Monday, July 13th. Wall Street Zen cut Pfizer from a “buy” rating to a “hold” rating in a report on Saturday, July 4th. Finally, HSBC lowered shares of Pfizer from a “buy” rating to a “hold” rating and lowered their target price for the stock from $32.00 to $28.00 in a report on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $28.50.
Read Our Latest Analysis on PFE
About Pfizer (Free Report)
Pfizer Inc (NYSE: PFE) is a multinational biopharmaceutical company headquartered in New York City. Founded in 1849 by Charles Pfizer and Charles Erhart, the company researches, develops, manufactures and commercializes a broad range of medicines and vaccines for human health. Its activities span discovery research, clinical development, regulatory affairs, manufacturing and global commercial distribution across multiple therapeutic areas.
Pfizer’s portfolio and pipeline cover oncology, immunology, cardiology, endocrinology, rare diseases, hospital acute care and anti-infectives, along with a substantial vaccine business.
Further Reading Five stocks we like better than Pfizer Netflix May Be Cheap Enough to Tempt Buyers After Earnings Drop Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs? The Market Sold Alcoa After Earnings—But It May Be Missing the Real Story Why Intuitive Surgical’s Strong Quarter Still Spooked Investors Want to see what other hedge funds are holding PFE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pfizer Inc. (NYSE:PFE – Free Report).
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Shares of Pfizer (PFE 0.22%) have fallen more than 50% from their late 2021 highs. That massive drawdown has pushed the dividend yield up to a historically high 6.9%. To put that yield into perspective, the S&P 500 index (^GSPC 1.01%) has a yield of roughly 1.1%, and the average pharmaceutical stock's yield is around 1.5%. As a dividend stock, Pfizer looks historically cheap and relatively cheap. Here's what's going on and why you might want to add this drug maker to your shortlist.
Pfizer has some problems to deal with Companies don't end up with outsize yields for no reason. Pfizer has several major patent expirations coming up. When a blockbuster drug loses patent protection, generic competition typically enters and revenues decline. This is why drug companies are always on the lookout for new drugs.
Image source: Getty Images.
On the new drug front, Pfizer hasn't been seeing the success Wall Street would like to see. Notably, it had to drop a GLP-1 weight-loss drug it was developing in early 2025. That was a public black eye, since it put the company well behind competitors.
There are very good reasons why investors are worried about Pfizer. And, notably, the dividend payout ratio is above 130%. There's also legitimate concern about the dividend's safety.
Things don't always line up in the business world There are definitely things for dividend investors to worry about with Pfizer, and conservative types may want to avoid it. However, there's really nothing out of the ordinary going on with the company. Patent expiration dates and new drug development don't always align the way a company would like. But Pfizer has a long and successful history in the drug sector, so it seems highly likely it will navigate this transition period.
Notably, after its GLP-1 mishap, Pfizer quickly announced the acquisition of a company with a more promising weight-loss drug candidate. It has other notable drugs in its pipeline as well.
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On the dividend front, the company's cash flows still cover the payment. Since dividends are paid out of cash flows, Pfizer has more wiggle room than it may seem to support the dividend (including using cash on its balance sheet and taking on additional debt). Management has also been very clear that protecting the dividend is a key priority.
Worth a risk for those willing to invest in out-of-favor stocks Risk-averse investors probably won't like Pfizer. But given the company's strong history, the moves it is making to address the totally normal headwinds it faces, and its stated commitment to the dividend, more aggressive dividend investors may find this cheap income stock compelling enough to put on their shortlists.
The big reason to buy Pfizer (PFE 0.22%) right now is its huge 7% dividend yield. To put that into perspective, the S&P 500 index (^GSPC 1.01%) yields a tiny 1%, and the average pharmaceutical stock yields 1.5%. The big risk with buying Pfizer for its outsize yield is that the dividend could be cut. Here's a look at the problem.
Pfizer's spending a lot of cash on its dividend In 2025, Pfizer paid roughly $9.8 billion in dividends. Through the first half of 2026, it paid roughly $4.8 billion. That's a total of $14.6 billion in dividends over the last six quarters. It is a lot of money going out the door at a time when the company needs cash to pay for other things.
Image source: Getty Images.
The most notable other thing this pharmaceutical giant is paying for right now is the research and development of new drugs. To be fair, drug companies are always spending on R&D. New drugs are granted time-limited patent protection, so there's a constant need to develop new drugs to replace older ones that are losing patent protection. When a patent expires, generic drugs enter the market and revenues from branded drugs tend to decline sharply.
Pfizer's problem is that several of its large drugs are set to lose patent protection. Oncology drug Ibrance loses patent protection in 2027, with cardiovascular drugs Eliquis and Vyndaqel set to lose patent protection in 2028. And Pfizer doesn't have any big new drugs lined up to replace them just yet. To be fair, patent expirations happen on a set schedule, but R&D does not. So this isn't a shocking development. Still, investors have to consider the risk posed to the dividend if new drugs don't arrive in time to offset the revenue hit from generic competition. Meanwhile, the company had a very public setback when it had to drop a GLP-1 drug candidate in 2025.
Pfizer has options and says the dividend is a priority Pfizer's trailing 12-month dividend payout ratio was over 130% at the end of the first quarter of 2026. That's a level that would worry most dividend investors. However, the financial impact of dividends isn't reported on the income statement; it is reported on the cash flow statement. If you compare dividends to cash flow using the cash dividend payout ratio, the figure is slightly more reassuring: 103%.
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It is important to note that companies can access cash in different ways. For example, Pfizer ended the first quarter with $1.7 billion in cash on its balance sheet and $11.3 billion in short-term investments. Put those two together, and Pfizer can support its dividend just from that for a few quarters. But it could also elect to take on additional debt, using the cash it raises to support the dividend. In other words, Pfizer has options.
The dividend, meanwhile, is paid at the discretion of the board of directors. Management has made it very clear that the dividend is a priority, stating in the first quarter slide deck that "maintain dividend" is a key long-term goal. Management wouldn't likely have said that if the board was seriously considering a dividend cut.
Pfizer: No dividend guarantees Pfizer's yield is so high because investors are worried about the safety of the dividend. Given the healthcare company's backdrop, that concern makes complete sense. From a business perspective, Pfizer's long and successful history suggests it will muddle through this rough patch in relative stride. For example, it quickly pivoted in the GLP-1 space and bought a company with a more promising drug candidate. Still, it isn't 100% clear that the dividend will survive.
Given the facts around the dividend, however, it seems likely that more aggressive dividend investors could end up big winners if they take on the risk of a dividend cut. Meanwhile, a realistic worst-case scenario would probably be a 50% dividend reduction. That would still leave the stock with an above-average yield, and such a cut appears to be already priced in. All in, the risk/reward balance may not be as bad as the out size yield suggests.
PFE trades below key moving averages as investors weigh fading COVID sales against pipeline growth, acquisitions and a low valuation with a high dividend.
Arbutus and its exclusive licensee, Genevant, filed three international lawsuits seeking to enforce patents protecting their innovative lipid nanoparticle (“LNP”) technology against Pfizer and BioNTech
Received approximately $178M from Moderna as Arbutus’ share of the noncontingent payment under the March 2026 Settlement Agreement resolving litigation over Moderna’s infringement of Arbutus’ LNP patents
Anticipates receipt of a dividend from Genevant in Q3 2026
Expects to return up to approximately $230M in capital to Arbutus shareholders
WARMINSTER, Pa., July 16, 2026 (GLOBE NEWSWIRE) -- Arbutus Biopharma Corporation (Nasdaq: ABUS) (“Arbutus” or the “Company”), a clinical-stage biopharmaceutical company focused on infectious disease, and its exclusive licensee, Genevant Sciences GmbH (“Genevant”) (a subsidiary of Roivant Sciences Ltd. (Nasdaq: ROIV)), today announced the filing of three international lawsuits seeking to enforce patents protecting their innovative LNP technology against Pfizer Inc., BioNTech SE and certain of their affiliates (together, “Pfizer/BioNTech”). Arbutus and Genevant are seeking monetary relief, as well as injunctions against Pfizer/BioNTech’s mRNA-LNP COVID-19 vaccines and any other products that would infringe the asserted patents.
The cases are:
Canada: Federal Court of Canada File No. T-3200-26, seeking a permanent injunction and damages or, if Arbutus and Genevant elect, an accounting of Pfizer/BioNTech’s profits, attributable to infringement of Canadian Patent No. 2,721,333Unified Patent Court (“UPC”): Case PR-UPC-CFI-0002562/2026, seeking permanent injunctions, as well as monetary damages, which can include recovery of Pfizer/BioNTech’s unfair profits from infringement of EP 4 241 767UPC: Case PR-UPC-CFI-0002566/2026, seeking permanent injunctions, as well as monetary damages, which can include recovery of Pfizer/BioNTech’s unfair profits from infringement of EP 4 495 237 The UPC actions seek relief for: Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovenia, Spain, and Sweden.
Today’s actions expand on Arbutus and Genevant’s ongoing enforcement proceeding in the U.S. District Court for the District of New Jersey, seeking fair compensation for Pfizer/BioNTech’s infringement of five U.S. patents in the manufacture and sale of Pfizer/BioNTech’s mRNA-LNP COVID-19 vaccines.
Arbutus also announced today the receipt on July 8, 2026 of approximately $178M from Moderna, Inc. (“Moderna”), representing the Company’s share of the noncontingent payment under the settlement agreement entered into with Moderna to resolve all global patent infringement litigation with Moderna related to Moderna’s COVID-19 vaccines. The payment from Moderna includes reimbursement of the Company’s litigation costs in accordance with the Company’s license agreement with Genevant. Arbutus also expects to receive a dividend from Genevant’s parent in Q3 2026, related to its ownership of approximately 16% of the outstanding common equity of Genevant’s parent.
Arbutus is also announcing that it expects to return capital to shareholders commencing in Q3 2026 through repurchases of up to approximately $230M of the Company’s common shares, which repurchases may come in the form of a tender offer (including a modified “Dutch Auction” tender offer), open market purchases, privately negotiated transactions, accelerated share repurchases or other means. The specific form(s) of any such transaction(s) remains subject to the approval of the Company’s board of directors. Any repurchase will not commence until after receipt of the expected dividend from Genevant’s parent in Q3 2026. No assurance can be given that any such repurchase activity will occur in Q3 2026, or at all.
About Arbutus
Arbutus Biopharma Corporation (Nasdaq: ABUS) is a clinical-stage biopharmaceutical company focused on infectious disease. The Company is currently developing imdusiran (AB-729) and an oral PD-L1 inhibitor (AB-101) for the treatment of chronic hepatitis B infection. The Company is also consulting closely with and supporting its exclusive licensee, Genevant Sciences, to protect and defend its intellectual property, which is the subject of an ongoing lawsuit against Pfizer/BioNTech for use of Arbutus’ patented lipid nanoparticle technology in their COVID-19 vaccines. For more information, visit www.arbutusbio.com.
Forward-Looking Statements and Information
This press release contains forward-looking statements and forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws (collectively, forward-looking statements) relating to future periods, including statements about the Company’s plans with respect to ongoing patent litigation matters; the Company’s receipt of a dividend from Genevant’s parent, and the timing thereof; and the Company’s expectation to return capital to shareholders, including the expected form and timing thereof.
The forward-looking statements contained in this press release are subject to a number of material factors that could cause actual results to differ materially, including the risk that the Company may not receive the expected dividend from Genevant’s parent on the terms or within the time expected, and that that the Company may determine not to proceed with a return of capital to shareholders for any reason. With respect to the forward-looking statements contained in this press release, Arbutus has made numerous assumptions regarding, among other things: the timing and terms for the receipt of the expected dividend from Genevant’s parent, the Company’s financial performance, and the stability of economic and market conditions. While Arbutus considers these assumptions to be reasonable, these assumptions are inherently subject to uncertainties associated with litigation generally and patent litigation specifically, and significant business, economic, competitive, market and social uncertainties and contingencies. Actual results could differ materially from those currently anticipated.
A more complete discussion of the risks and uncertainties facing Arbutus appears in Arbutus’ Annual Report on Form 10-K, Arbutus’ Quarterly Reports on Form 10-Q and Arbutus’ continuous and periodic disclosure filings, which are available at www.sedarplus.ca and at www.sec.gov. All forward-looking statements herein are qualified in their entirety by this cautionary statement, and Arbutus disclaims any obligation to revise or update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, except as required by law.
Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) and Pfizer (NYSE:PFE) both closed Q1 2026 with earnings beats, yet their post-report stories look nothing alike. JNJ raised guidance while headlines fixated on a 68,000-case talc litigation MDL. Pfizer reaffirmed its outlook and pushed harder into obesity and oncology. Two large-cap dividend payers, two very different setups for buyers today.
Oncology Powers JNJ. Padcev and Vyndaqel Carry Pfizer. JNJ posted $24.062 billion in revenue, up 9.9%, with Innovative Medicine at $15.426 billion (+11.2%). DARZALEX cleared $3.964 billion (+22.5%), TREMFYA jumped 68.3%, and CARVYKTI grew 62.1%. STELARA cratered 59.7% from biosimilar erosion, and the portfolio still absorbed the hit.
Pfizer delivered $14.451 billion (+5.4%) with Specialty Care up 12% and Oncology up 9%. Padcev was the standout at $591 million (+39%). COVID kept dragging: Comirnaty down 59%, Paxlovid down 62%. CEO Albert Bourla said Pfizer is “positioned to lead” in oncology and obesity.
Business Driver JNJ PFE Growth engine Oncology and immunology Launched/acquired products +22% Standout drug DARZALEX +22.5% Padcev +39% Biggest drag STELARA -59.7% Paxlovid -62% One Sharpens Its Focus. One Bets the House on Obesity. Joaquin Duato is stripping JNJ down to six priority areas, spinning DePuy Synthes within 18 to 24 months, and investing over $1 billion in next-gen cell therapy manufacturing in Pennsylvania. Guidance moved up to $100.8 billion in revenue and $11.55 in adjusted EPS.
Pfizer is going the other direction. Bourla dropped ~$7 billion on Metsera for ultra-long-acting GLP-1 obesity assets, added a $1.35B PD-1 x VEGF bispecific from 3SBio, and lined up ~20 pivotal study starts for 2026. The Vyndamax patent settlement pushed effective U.S. exclusivity to June 2031, defusing a real cliff.
Talc Charges vs. Obesity Readouts JNJ absorbed $330 million in litigation charges in Q1 and still beat. Polymarket traders assign a 92% probability that JNJ beats again next report. The stock is up 26.71% year to date, while PFE sits at -1.52%. I want to see Padcev’s August 17, 2026 PDUFA land and Metsera Phase 3 data validate the obesity bet.
Why the Talc Noise Looks Like My Kind of Setup I lean toward JNJ here. A 64 consecutive year dividend record, a 46% payout ratio backed by a $21 billion free cash flow target, and accelerating oncology growth are worth more to me than the litigation overhang costs. If you need income today, PFE’s 7.2% yield and 8x forward earnings offer a turnaround pitch, but the obesity thesis has to actually work. For steadier compounders, I would take the Dividend King while the courtroom headlines still cloud the price.
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Buying stocks when they aren't doing well may not seem like an enticing option. But for long-term investors, the goal is where stocks will be years down the road, not where they are today, or even headed in a few weeks or months. That's why, in the long run, buying stocks with strong fundamentals can be a great move, especially when they are trading at discounted prices.
Three stocks that are attractively priced right now and that could have a lot of room to rise higher in the long run are Netflix (NFLX 0.39%), Pfizer (PFE 0.96%), and Verizon Communications (VZ 0.59%). They're all trading at less than $100, and here's why they can be excellent buys right now.
Image source: Getty Images.
Netflix Normally a top growth stock, streaming company Netflix hasn't been as compelling an investment this year. The market appears to be concerned about where the business may be heading, with its name often involved in rumors relating to potential acquisitions, and co-founder Reed Hastings recently leaving the company.
At around $74 and the stock trading at 24 times its trailing earnings, its valuation is attractive given how strong Netflix's business is. The company has achieved considerable growth over the years, with its revenue totaling $45 billion last year -- which is an increase of 34% from where it was two years ago.
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What's even more impressive is that it has grown at a fast rate while also having strong profit margins; its earnings totaled $11 billion last year, which means about 24 cents of every dollar of revenue flows through to the bottom line. Netflix has an excellent business model, and at a reasonable price, it's still a top stock to buy for the long haul.
Pfizer Healthcare stock Pfizer has effectively been in stock market purgatory for years. No matter how attractive its dividend gets, no matter the acquisitions it makes to bolster its growth prospects, investors appear to have forgotten it even exists. This year, it's down around 3%, despite trading at an already heavily discounted valuation; its forward price-to-earnings (P/E) multiple, based on analyst estimates, is just eight.
It's trading at $24, which is the price you could have bought it at back in 2012. The market may be waiting for proof and confirmation that the business will be in good shape and that its dividend, which yields 7.1%, is really safe in the long run. Acquisitions have bolstered its pipeline, and the company has around 20 key pivotal studies it's starting this year. If it gets even a bit of good news relating to one of its drugs, that could set off a rally for the stock.
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Pfizer is a top name in healthcare, and it has demonstrated over the years an ability to innovate and grow. There is some uncertainty ahead for the business, but with Pfizer still expecting to generate solid and stable numbers this year, it's a safer stock than it looks. A rally may not be necessarily around the corner, but with a high dividend yield and a lot of potential upside, this may be an ideal option for long-term investors who are willing to wait and stay the course.
Verizon Communications Another high-yielding stock that hasn't been getting much love of late is Verizon. It was doing well in the early part of the year, but it's nearly given back all those gains and is now up just around 4% thus far in 2026. At around $42, this is a stock that is another good value option to consider, with its forward P/E multiple also around eight.
Like Pfizer, it too pays a fairly high dividend, with its yield at about 6.7%. This telecom giant is the prototypical boring, long-term holding that can make for an excellent pillar in any portfolio. While it typically generates single-digit growth, it's fairly stable, with the company reporting more than $130 billion in revenue in each of the past three years.
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With Verizon recently completing its acquisition of Frontier, its business will grow, and its growth rate is likely to improve as well. It's a leader in telecom, and that's unlikely to change anytime soon, which makes it an excellent long-term buy.
A high-yielding dividend may sound great for investors, but it can be a double-edged sword: when it's too high, investors start to worry about its safety. That's a big part of the reason why Pfizer (PFE 0.90%), whose 7.1% yield is well above the S&P 500 average of just 1.1%, isn't able to draw in investors; many are worried the dividend is due for a cut.
Not only is Pfizer's dividend far above average, but it is now also the highest yield in the entire S&P 500. Is this a warning sign for investors that the dividend may be cut in the near future, or could Pfizer prove to be an underrated income stock to buy right now?
Image source: Getty Images.
Pfizer's yield has been volatile in recent years A high yield can be concerning, but that alone doesn't make it risky. Similarly, just because a yield is low doesn't mean it's sustainable, either. The yield can fluctuate significantly because it is tied to the share price. When a stock is rising, its yield falls because it costs more to secure the same level of dividend income. And when it falls, as has been the case with Pfizer's stock in recent years, the yield can rise significantly.
PFE Dividend Yield data by YCharts
If Pfizer posts strong earnings numbers in its upcoming quarterly results, issues promising guidance, or there's positive news around one of its drugs, its share price could take off, and just like that, the yield could come down.
There is, however, some risk with the dividend because Pfizer's earnings haven't been all that strong in recent quarters. During the first three months of the year, the company's diluted per-share profit was $0.47, not much higher than its quarterly dividend rate -- $0.43. There's not much of a buffer there, and investors may also be concerned about its long-term future, as the pharma company deals with patent cliffs and navigates a challenging course ahead, which could see its sales (and profits) drop in the future.
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Is Pfizer's stock worth buying? Pfizer's dividend may look shaky, but the good news is the company's earnings aren't in bad shape, and it's in the midst of restructuring and cutting costs, which should give it more breathing room in the future. It has also acquired companies that could unlock more growth opportunities down the road.
While this may not be the type of stock investors can simply buy and forget, Pfizer may be a good option for income investors willing to monitor it closely. As of now, the dividend still looks safe, and this could be an underrated option to consider, especially given its low valuation, as the stock trades at just eight times its estimated future earnings, based on analyst expectations.
Key Takeaways Pfizer's Q2 oncology sales may be lifted by Padcev, Lorbrena, Elrexfio and oncology biosimilars. PFE is expected to share updates on late-stage oncology candidates and PF-08634404 on its Q2 call. Ibrance and Adcetris declines may be offset by stronger sales from newer cancer therapies. Pfizer (PFE - Free Report) is one of the world’s leading oncology drugmakers, with a strong presence across breast, genitourinary, thoracic, gastrointestinal and hematologic cancers. The company has built a broad portfolio of marketed cancer therapies and maintains a deep oncology pipeline spanning multiple treatment modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics.
Oncology sales comprise around 27% of its total revenues. Its oncology revenues grew 7% to $3.8 billion in the first quarter of 2026. Investors will be keen to know how its oncology segment performed in the second quarter when the company announces results on Aug. 4.
Pfizer’s oncology sales in the second quarter are expected to have been driven by higher sales of key drugs like Padcev, Lorbrena and the Braftovi-Mektovi combination, which should make up for declining sales of drugs like Ibrance and Adcetris. Sales of the new drug, Elrexfio, are also likely to have risen in the quarter.
The Zacks Consensus Estimate for Padcev is $661 million, while that for Ibrance is $1.05 billion.
Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Its oncology biosimilars are expected to have made a significant contribution to sales growth in the second quarter of 2026, similar to the past few quarters.
Pfizer is also likely to provide updates on its key oncology candidates on the second-quarter conference call. Several oncology candidates have entered late-stage development, such as atirmociclib and sigvotatug vedotin. A regulatory application seeking approval of sasanlimab is also under review in the EU.
Last year, Pfizer entered into a global ex-China in-licensing agreement with China's 3SBio for exclusive rights to PF-08634404, a dual PD-1 and VEGF inhibitor, which it plans to establish as a potential backbone therapy across multiple tumor types. Pfizer plans to start four pivotal studies for PF-08634404 in 2026. An update on PF-08634404 is expected on the second-quarter conference call.
Competition in the Oncology SpacePfizer is one of the largest drugmakers of cancer medicines. Other large players in the oncology space are AstraZeneca (AZN - Free Report) , Merck (MRK - Free Report) , J&J (JNJ - Free Report) and Bristol-Myers.
For J&J, the Oncology segment comprises around 29% of total revenues and 45% of its Innovative Medicine segment sales. Its oncology sales rose 17.8% on an operational basis in the first quarter of 2026, driven by strong market growth and share gains of key cancer products such as Darzalex and Erleada. The sales growth was partially dampened by lower sales of Imbruvica. J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze, are contributing significantly to top-line growth, driven by market share gains.
For AstraZeneca, oncology sales now comprise around 45% of total revenues. Sales in its oncology segment rose 16% at constant exchange rate (CER) in the first quarter of 2026. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are PD-L1 inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for around 50% of Merck’s pharmaceutical sales. Keytruda recorded sales of $8 billion in the first quarter of 2026, up 8% year over year.
PFE’s Price Performance, Valuation and EstimatesPfizer’s stock has risen 1.6% so far this year compared with an increase of 12.1% for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 8.42 forward earnings, significantly lower than 18.49 for the industry as well as the stock’s five-year mean of 9.37.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has declined from $2.99 per share to $2.96 per share, while that for 2027 has been stable at $2.86 per share over the past 60 days.
Image Source: Zacks Investment Research
Pfizer has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer (PFE - Free Report) closed the most recent trading day at $24.48, moving +1.28% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.55%.
Coming into today, shares of the drugmaker had lost 7.78% in the past month. In that same time, the Medical sector gained 5.5%, while the S&P 500 gained 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Pfizer in its upcoming earnings disclosure. The company's earnings report is set to go public on August 4, 2026. The company is expected to report EPS of $0.68, down 12.82% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $14.45 billion, indicating a 1.39% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.96 per share and a revenue of $61.87 billion, demonstrating changes of -8.07% and -1.14%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Pfizer. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.9% lower within the past month. As of now, Pfizer holds a Zacks Rank of #3 (Hold).
In the context of valuation, Pfizer is at present trading with a Forward P/E ratio of 8.17. This indicates a discount in contrast to its industry's Forward P/E of 16.41.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Pfizer is undervalued, trading at just over 8x 2026 earnings, with a 7% dividend yield and improving core business fundamentals. Core business excluding COVID drugs grew 7% in Q1, and newly launched/acquired products, especially from Seagen, are driving robust 20%+ growth. Seagen's acquisition is reshaping PFE's growth, with Padcev leading oncology momentum and a strong cost savings program underway.
Pfizer remains an undervalued diversification play, underperforming the benchmark but increasing 2% since prior coverage. I view PFE as a defensive holding that pays investors to maintain a cautious stance in volatile markets. PFE offers an attractive opportunity to offset AI-related risks within a broader portfolio context.
Humans are very bad at taking medications. By some estimates, adherence to long-term chronic medication treatment plans is only around 50%. This is a big issue for GLP-1 weight-loss drugs, which must be taken for life and as often as daily. Pfizer (PFE 0.14%) is betting that making a more convenient option will give it a leg up on the competition.
Pfizer is way behind the GLP-1 pack Pfizer has a problem when it comes to GLP-1 weight-loss drugs. Novo Nordisk (NVO +1.23%) was the first to market with its Wegovy shot. Eli Lilly's (LLY 2.30%) Zepbound and Mounjaro came out next, but proved more effective and quickly became the industry-leading GLP-1 weight-loss drugs. Pfizer gave up on its own option and was forced to go back to the drawing board by acquiring a company with a more attractive GLP-1 drug candidate.
Image source: Getty Images.
While Novo Nordisk and Eli Lilly are now competing with each other with GLP-1 pills, Pfizer is still trying to get a GLP-1 drug out the door. But it has an ace up its sleeve. The company's Berobenatide is taken monthly, compared with competitors' weekly injections or the daily pills they are now selling. Taking a medication roughly 12 times a year could materially increase adherence rates.
Pfizer's GLP-1 drug isn't on the market yet Like all pharmaceutical companies, Pfizer must go through the approval process before it can market Berobenatide. And while the latest update from the company is from a phase three trial, it still has a lot more work to do before it can start competing with Eli Lily and Novo Nordisk. So investors have to take the update with a grain of salt. However, it appears that Berobenatide provides similar or better weight-loss benefits to competing GLP-1 drugs.
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Similar results and a less frequent medication regimen could help Pfizer become a main player in the GLP-1 space, even though it is late to the party. That said, Novo Nordisk and Eli Lilly aren't exactly sitting around doing nothing, so more GLP-1 developments are likely from this pair, as well. Still, obesity is a problem that affects a material number of people, so there's likely room for multiple drugs. Consumers and medical providers will select the ones that best serve their unique needs.
In other words, don't give up on Pfizer because it doesn't have a GLP-1 drug just yet. Given the positive update on Berobenatide, it could just be a matter of time before it does, offering consumers a drug regimen that's easier to adhere to.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly, Novo Nordisk, and Pfizer. The Motley Fool has a disclosure policy.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Pfizer (PFE - Free Report) , which belongs to the Zacks Large Cap Pharmaceuticals industry, could be a great candidate to consider.
This drugmaker has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 10.71%.
For the last reported quarter, Pfizer came out with earnings of $0.75 per share versus the Zacks Consensus Estimate of $0.71 per share, representing a surprise of 5.63%. For the previous quarter, the company was expected to post earnings of $0.57 per share and it actually produced earnings of $0.66 per share, delivering a surprise of 15.79%.
Price and EPS Surprise
For Pfizer, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Pfizer has an Earnings ESP of +2.22% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 4, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
NEW YORK & TOKYO--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) and Astellas Pharma Inc. (TSE: 4503, President and CEO: Naoki Okamura, “Astellas”) today announced that the U.S. Food and Drug Administration (FDA) has approved PADCEV® (enfortumab vedotin-ejfv), a Nectin-4 directed antibody-drug conjugate, plus the PD-1 inhibitor, Keytruda® (pembrolizumab) or Keytruda QLEX™ (pembrolizumab and berahyaluronidase alfa-pmph) as neoadjuvant and adjuvant (before and after surgery) treatment for adult patient.
Jim Cramer stared down a stock yielding 7% and sitting near its 52-week low, and still would not tell viewers to buy it. On the July 7 episode of CNBC’s Mad Money, a caller from Orland Park, Illinois pitched Pfizer as an income-and-value setup, and Cramer conceded the case looked tempting. He landed on a reluctant pass anyway, telling the caller, “It kills me to say that a stock that yields 7% that used to have a lot of growth is going to have growth again, but I can’t come up with where the growth is. I just can’t. I’m sorry.”
The Caller and the Setup After a friendly exchange about Cramer’s 2:47 AM wake-up habit and a shout-out to a staffer named Sean, the Orland Park caller framed the question plainly: “I’m looking at a pharmaceutical company. You’ve had the CEO on your show several times over the past few years. Pays a high dividend. Down near the 52-week low. What do you think about Pfizer, Jim?” It is the kind of pitch that usually gets a warmer response from a host who has hosted CEO Albert Bourla repeatedly.
Cramer’s Reasoning on Pfizer Pfizer (NYSE:PFE | PFE Price Prediction) drew a diagnosis rather than an endorsement. Cramer told the caller, “Okay, they do have earnings growth problems. They haven’t been able to make the Seagen acquisition work the way it should. The dividend is safe at 7%.” The Seagen deal, closed in December 2023 for roughly $43 billion, was supposed to seed Pfizer’s post-COVID oncology franchise. Padcev, one of the assets that came over, did grow 39% operationally in Q1 2026, but that has not been enough to offset a 59% drop in Comirnaty and a 63% operational decline in Paxlovid.
The headline numbers still show a company that beats and guides steadily. Pfizer posted Q1 2026 revenue of $14.45 billion against a $13.80 billion estimate, adjusted EPS of $0.75 (a fifth consecutive beat), and reaffirmed FY2026 revenue guidance of $59.5 billion to $62.5 billion and adjusted EPS of $2.80 to $3.00, per the company’s 8-K filing. Net income of $2.687 billion was down 9.44% year over year, and operating income fell 31.44%. That is the growth gap Cramer is pointing at.
The Core Tension: Safe Yield, No Growth Cramer’s stance boils down to a simple test that a safe payout alone does not clear. Pfizer’s quarterly dividend of $0.43 was raised from $0.42 beginning with the January 2026 payment, extending a long streak of modest increases. FY2025 dividends paid totaled $9.8 billion, and management has signaled no buybacks in 2026 despite a $3.3 billion remaining authorization. Cash is going to the payout and to deals like the ~$7.0 billion Metsera acquisition in obesity/GLP-1 and a $1.35 billion charge to in-license a PD-1 x VEGF bispecific from 3SBio. Those bets could re-seed the pipeline. They have not yet moved the earnings needle in a way that satisfies Cramer.
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What the Market Says The market seems to agree, at least for now. Pfizer closed at $24.05 on July 8, down 6.13% over the past month and roughly flat year to date. The 52-week range runs from $21.97 to $28.28, and the trailing yield sits at 7.25%. Analyst consensus target is $29.00, with 16 Hold ratings dominating the board. Forward P/E of 8x tells you the market is pricing in the patent cliff around Eliquis and Vyndaqel, IRA Medicare Part D redesign pressure, and Most-Favored-Nation drug pricing risk.
For readers weighing this against other high-yield names, our ongoing Paycheck Portfolio coverage tracks how income investors are handling yield traps versus durable payers in 2026.
The Bottom Line Cramer’s take is Cramer’s take. Income investors who care most about a covered 7% payout may reasonably read the same facts and reach a different conclusion, especially with the stock sitting closer to the low end of its 52-week range. Growth investors hunting a catalyst will hear Cramer clearly. This is reporting on his opinion, and readers should treat it as such. Do your own research before acting.
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Income investors watching the calendar have a narrow window this week. Three of the market’s most widely held high-yield names are about to lock their next payment rosters, and the buy-by deadlines are close enough that a delayed brokerage order could push readers a full quarter down the line before the next check clears. The trio in focus, Verizon (NYSE:VZ | VZ Price Prediction), AT&T (NYSE:T), and Pfizer (NYSE:PFE), pair yields above the broad market average with coverage profiles that separate them from typical yield traps.
Here is the at-a-glance calendar, followed by a coverage read for each name using the metric that actually matters for its business model.
The Buy-By Calendar Stock Ex-Dividend Date Payment Date Quarterly Dividend Yield Verizon (VZ) July 10, 2026 August 3, 2026 $0.7075 6.57% AT&T (T) July 10, 2026 August 3, 2026 $0.2775 5.39% Pfizer (PFE) July 24, 2026 September 1, 2026 $0.43 7.07% To qualify for any of these payments, shares must be owned by the day BEFORE the ex-dividend date, which for Verizon and AT&T means settling a trade by the close on Thursday, July 9th, 2026. (That’s tomorrow.) Pfizer offers a longer runway, with a buy-by date roughly two weeks out (July 23rd).
Verizon: Free Cash Flow Doing The Heavy Lifting Verizon trades at $42.82 with a market cap of $177.83 billion, and the stock has slipped 6.13% over the past month, pushing the yield toward the top of its historical range. The quarterly payment of $0.7075 was raised from $0.69 earlier this year, extending a streak that Wells Fargo recently flagged as 21 consecutive years of dividend increases.
For a capital-heavy telecom, free cash flow is the right coverage lens. Management is guiding to free cash flow of $21.5 billion or more in 2026 alongside $3.0 billion-plus in share repurchases, comfortably above dividend commitments. Q1 2026 adjusted EPS came in at $1.28, up 7.6% year over year, on revenue of $34.44 billion. Leverage is the offset: net debt-to-EBITDA sits at 2.6x following the Frontier acquisition that closed January 20, 2026. At a forward multiple of 8, the market is already pricing in that debt load.
AT&T: A Fixed Payout Backed By Rising Cash AT&T shares last changed hands at $21.27, down 22.53% over the past year. The dividend has held at $0.2775 per quarter for eight consecutive quarters, and management has publicly committed to maintaining that payout through 2028.
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Coverage here also runs through free cash flow. Guidance calls for $18 billion-plus in FCF against the dividend plus $8 billion in planned 2026 buybacks, part of a $45 billion-plus shareholder-return program through 2028. Q1 2026 adjusted EPS of $0.57 rose 11.8% year over year, and the company added 584,000 internet subscribers alongside 294,000 postpaid phone net adds. Net debt-to-EBITDA of 2.71x is elevated but trending in the right direction. Wall Street’s average price target sits at $30.24, well above the current quote.
Pfizer: Earnings Coverage With A Patent-Cliff Overhang Pfizer offers the fattest headline yield of the three at 7.07%, with shares at $24.22 after a 7.57% monthly pullback. For a large-cap pharma, coverage is best measured against adjusted EPS rather than free cash flow, given the lumpiness of R&D and legal outflows. Full-year 2026 guidance of $2.80 to $3.00 in adjusted EPS against an annual dividend of $1.72 leaves the payout ratio in a workable range, even after the company paid $2.4 billion in dividends in Q1 alone.
Growth is coming from the newer portfolio. Padcev rose 39%, Nurtec ODT/Vydura climbed 41%, and the recently launched or acquired basket grew 22% operationally. The pushback is COVID-related revenue rolling off (Comirnaty down 59%, Paxlovid down 63%) plus a $1.5 billion loss-of-exclusivity headwind this year.
What To Watch Next All three names carry institutional ownership above 69%, which typically muffles the mechanical price drop that follows an ex-dividend date. Verizon and AT&T both offer forward multiples in the single digits (8x and 9x respectively), a rare combination alongside yields north of 5%. Pfizer, at a forward multiple of 8, prices in the patent-cliff drag, so the coverage read matters more than the headline yield. The clock is the shorter-term variable: miss the buy-by deadline, and the next opportunity is roughly three months out.
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Pfizer (PFE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this drugmaker have returned -6.3% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Large Cap Pharmaceuticals industry, to which Pfizer belongs, has gained 9.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Pfizer is expected to post earnings of $0.68 per share for the current quarter, representing a year-over-year change of -12.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $2.98 points to a change of -7.5% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $2.86 indicates a change of -4.2% from what Pfizer is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Pfizer.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Pfizer, the consensus sales estimate of $14.48 billion for the current quarter points to a year-over-year change of -1.2%. The $61.85 billion and $59.97 billion estimates for the current and next fiscal years indicate changes of -1.2% and -3%, respectively.
Last Reported Results and Surprise HistoryPfizer reported revenues of $14.45 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.75 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $13.82 billion, the reported revenues represent a surprise of +4.56%. The EPS surprise was +5.63%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Pfizer is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Pfizer. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
It's hard not to love high dividend yields. Who doesn't want more dividends for their money? Pfizer (PFE +1.31%) and its current yield of 7% will certainly grab your attention.
But remember that the company sets the dividend amount, and the market sets the stock's yield. A yield as high as Pfizer's can be a warning that Wall Street sees problems and trades the stock at a price that reflects those risks.
The problem for investors is that it's difficult to see any obvious red flags in Pfizer's dividend -- right now. Here's why it's far riskier than it might look.
Image source: The Motley Fool
Pfizer's dividend looks and sounds safe, on the surface Wall Street analysts estimate that the pharmaceutical giant will earn approximately $2.99 per share this year. That's good news. Pfizer pays out $1.72 in dividends, so, at least based on earnings, the payout ratio is healthy at 57%. Additionally, the management team has been quite vocal about the dividend. Pfizer noted that preserving and supporting its dividend is a priority as recently as its first-quarter 2026 earnings call in May.
That will resonate with investors. The company benefited from selling COVID-19 vaccines and treatments in the early years of the pandemic, but has struggled since then as that windfall dried up. Pfizer's dividend, especially at a 7% yield, genuinely moves the needle for investors who might be sitting on some unrealized capital losses. The stock is still 60% below its 2022 high.
Unfortunately, there are risks now and on the horizon Pfizer is facing the dreaded patent cliff over the next few years, when patents on some key products expire; these include Eliquis, its top seller in 2025, with roughly $8 billion in sales. Its COVID-related products Comirnaty and Paxlovid, combined, generated $6.7 billion in sales last year but continue to decline sharply. Industry analysts estimate that Pfizer could lose $17 billion in revenue from its existing portfolio by 2030.
The company is working to plug that hole with new drugs from its pipeline, but Pfizer's financial profile could dramatically shift soon. On top of that, the company didn't earn enough cash flow to cover its dividends in 2025, falling approximately $700 million short. Dividends are a cash expense, so that's a red flag, regardless of what earnings based on generally accepted accounting principles (GAAP) say.
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What should investors do? Pfizer seems committed to the dividend for now. The company has $13 billion in cash on hand, so dipping into that last year to cover its payouts isn't the end of the world. However, it's difficult to place much confidence in the dividend from one quarter to the next, because the cash payout ratio is tight and uncertainty about the next few years looms over Pfizer's business.
If you're buying Pfizer stock for its dividend, you'll want to weigh these risks, because the dividend isn't as ironclad as it looks.
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Healthcare has become Wall Street’s bargain bin in 2026, and value hunters are starting to pay attention. Drug pricing reform, patent cliffs and post-COVID-19 hangovers have crushed multiples across Big Pharma, but the wreckage has created opportunities in two cash-generative franchises trading at single-digit forward earnings multiples. Heading into July, Novo Nordisk and Pfizer stand out as the cheapest large-cap names in the group, with concrete catalysts that could re-rate them before year-end.
Both report Q2 earnings in early August, which means the window to position before the next data point is narrow. Here’s the case for each.
Novo Nordisk (NVO) Novo Nordisk (NYSE:NVO | NVO Price Prediction) trades around $49 after a brutal 12-month derating that took the stock down 29% from a year ago. The 52-week range stretches from $35.12 to $71.80, and shares now sit well below the $47.32 consensus analyst target. Note for income investors: NVO is a Danish ADR, so dividends are subject to foreign withholding tax at the source before they hit your brokerage account.
The valuation is where this gets interesting. Novo trades at a trailing P/E of 12 and a forward P/E of 14, with EV/EBITDA at 9. For a business generating a 71% return on equity and a 62% operating margin, that is a fire-sale multiple.
The bull case rests on the Wegovy pill launch. CEO Mike Doustdar called it “the most efficacious GLP-1 tablet now used by more than one million patients since its January launch.” Q1 FY2026 results, reported May 6, showed the oral version generating $2.26 billion in its first quarter and capturing 65% of new US prescriptions in the category. Obesity care grew 22% at constant exchange rates, and management raised 2026 guidance. Free cash flow yield sits in the high teens, and the board funded a DKK 15 billion buyback through February 2027.
The risk: US pricing is the swing factor. The Most-Favored-Nation framework and planned ~50% Wegovy and ~35% Ozempic list price cuts effective January 2027 will compress cash flow. CER sales are still declining, and CagriSema missed its primary endpoint in the REDEFINE 4 obesity trial. Q2 results land Aug. 5, with consensus at 83 cents.
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Pfizer (PFE) Pfizer (NYSE:PFE) trades around $23.80 with a forward P/E of just 8x, a trailing P/E of 19 and a dividend yield of 7.23%. The current quarterly payout of 43 cents per share cost the company $2.4 billion in Q1 alone, fully covered by free cash flow. Analyst target sits at $29.15.
The plain-language bull case: the COVID hangover is almost behind them, and the underlying business is growing again. Q1 FY2026 revenue came in at $14.451 billion, beating expectations and rising 5% year over year. Adjusted EPS of $0.75 marked the fifth consecutive consensus beat. Launched and acquired products grew 22% operationally, with Padcev up 39%, Nurtec up 41%, Eliquis up 13%, and Orgovyx up 43%.
Two specific catalysts matter. First, the Vyndamax patent settlement extends US exclusivity to June 2031, eliminating a feared cliff and providing visibility through the end of the decade. Second, Pfizer is teeing up roughly 20 pivotal studies in 2026, including obesity assets from the Metsera acquisition. CEO Albert Bourla said he is “particularly encouraged by what we’re seeing in oncology and obesity, two areas where I believe Pfizer is positioned to lead.” Add in a $7.2 billion cost-savings program targeted by 2027, and the margin story has a tailwind.
The risk: patent cliff and pricing policy. COVID-era franchises continued to roll over in Q1, with Comirnaty down 59% and Paxlovid down 63%. Generic and biosimilar competition is expected to subtract roughly $1.5 billion in revenue this year. Net debt to EBITDA at 3.26x leaves little slack, and management explicitly stated no share repurchases are anticipated in 2026. Full-year guidance was reaffirmed at $59.5 to $62.5 billion in revenue and $2.80 to $3.00 in adjusted EPS. Q2 results arrive pre-market on August 4, 2026, with consensus at $0.68.
What to Watch in July Both stocks screen as deep value, but the catalysts diverge. Novo’s story hinges on whether Wegovy pill volume can outrun US price cuts. Pfizer’s hinges on pipeline conversion and oncology execution. With both companies reporting in the first week of August, July’s positioning window is short. Investors looking for cheap optionality on the GLP-1 franchise lean toward Novo. Income-focused buyers wanting a 7% yield backed by Eliquis, Vyndaqel, and a stretched but not broken balance sheet skew toward Pfizer.
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In the latest trading session, Pfizer (PFE - Free Report) closed at $23.72, marking a -2.47% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.
The drugmaker's shares have seen a decrease of 6.61% over the last month, not keeping up with the Medical sector's gain of 12.48% and the S&P 500's loss of 0.9%.
The investment community will be paying close attention to the earnings performance of Pfizer in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. On that day, Pfizer is projected to report earnings of $0.68 per share, which would represent a year-over-year decline of 12.82%. In the meantime, our current consensus estimate forecasts the revenue to be $14.48 billion, indicating a 1.2% decline compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.99 per share and a revenue of $61.85 billion, signifying shifts of -7.14% and -1.17%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Pfizer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. As of now, Pfizer holds a Zacks Rank of #3 (Hold).
Digging into valuation, Pfizer currently has a Forward P/E ratio of 8.15. This indicates a discount in contrast to its industry's Forward P/E of 16.26.
The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Analysts Rajesh Kumar and Dylan Whitfield downgraded to Hold from Buy and lowered their target forecast to $28 from $32, citing increased uncertainty around key pipeline assets and recent executive leadership changes.
The original bullish thesis centered on Pfizer’s increased R&D focus, a dividend yield of roughly 6%, and management’s goal of delivering high single-digit revenue growth between 2028 and 2032.
However, HSBC analysts now believe those growth expectations are unlikely to be validated in the near term.
Oncology Pipeline Delay Weighs On Growth OutlookA key factor behind the downgrade was a reduction in the probability of success for sigvotatug vedotin (SV) to 40% following its Phase 3 setback in non-small cell lung cancer (NSCLC).
The analysts also raised the stock’s beta to 0.85 from 0.78, contributing to the lower price target.
According to the note, Pfizer’s long-term growth outlook depends heavily on the success of SV, atirmociclib, a VEGF-bispecific oncology program, and, to a lesser extent, its obesity portfolio.
However, analysts said meaningful catalysts for these programs are expected closer to 2027 rather than in the second half of 2026, leaving investors with few near-term events that could resolve the ongoing growth debate.
In the meantime, analysts expect the effects of MFN pricing, IRA-related changes, and loss-of-exclusivity pressures to become increasingly visible.
Management Changes Add Another Layer Of UncertaintyThe report also highlighted recent executive leadership changes as another reason for caution.
With a new chief financial officer and chief strategy officer joining the leadership team under the current CEO, analysts believe investors may wait for greater clarity on the company’s approach to capital allocation and dividend discipline.
While analysts said Pfizer’s valuation appears attractive relative to its medium-term earnings potential, they cautioned that the stock could remain inexpensive unless the company delivers successful pipeline outcomes.
They also warned that the NSCLC setback for sigvotatug vedotin increases uncertainty around future catalysts and could negatively affect investor perception of management’s capital allocation if impairments related to Seagen’s intangible assets emerge.
PFE Stock Price Activity: Pfizer shares were down 2.06% at $23.82 at the time of publication on Monday, according to Benzinga Pro data.
Photo: Molly Woodward / Shutterstock
Market News and Data brought to you by Benzinga APIs
Rick Ducat points to Pfizer (PFE) as an underperformer in the healthcare sector and greater S&P 500 (SPX). However, shares of the company show some signs of strength that Rick believes sets the stage for a rebound even after the stock was hit with a recent downgrade.
Index Dow Jones -0,1 % na 52848,66 b. S&P 500 +0,44 % na 7516,13 b. Nasdaq Composite +0,91 % na 26067,65 b.
Obchodní den po prodlouženém víkendu začíná smíšeně. Index Dow Jones kosmeticky ztrácí, povedlo se mu ale po otevření poprvé překonat 53000 b. Tahounem indexu s růstem nad 2 % je Caterpillar (2,55 %) a Goldmman Sachs Group (2,41 %).
Z indexu S&P 500 posilují zejména informační technologie, kterých růst se propisuje i do indexu Nasdaq. Nejslabším sektorem je zdravotnictví. Pfizer ztrácí 2,06 %, Eli Lilly odepisuje 1,16 % a Johnson & Johnson klesá o 1,81 %.
Z technologií dnes opět rostou čipové společnosti. Broadcom a AMD posilují o víc, než 6 %, Nvidia se obchoduje na kladné nule.
Microsoft (-1,65 %) se chystá na další vlnu propouštění, která tentokrát zasáhne divize prodeje a Xbox. Celkem se má společnost zeštíhlit o přibližně 2 % pracovní síly, tedy 4 800 míst. Společnost se snaží o zefektivnění nákladů a tlačí na zvyšování efektivity všech divizí. Microsoft zvažuje i změnu struktury herní divize s možným prodejem několika studií.
OPEC o víkendu oznámil záměr zvýšit těžbu černého zlata. V srpnu by se měl objem navýšit o 188 tis barelů denně. Futures kontrakty na WTI reagují mírným poklesem. Aktuálně se barel obchoduje pod USD 69.
Index S&P 500 +0,44 % na 7516,13 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,6 % Zdravotní péče -1,8 % Průmysl +1,2 % Nezbytná spotřeba -0,8 % Finanční sektor +0,2 % Reality -0,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Western Digital Corp (WDC) +9,0 % O'Reilly Automotive (ORLY) -5,2 % Advanced Micro Devices (AMD) +7,5 % AutoZone (AZO) -4,7 % Vertiv Holdings (VRT) +7,4 % Constellation Brands (STZ) -3,8 % Teradyne (TER) +7,1 % SBA Communications Corp (SBAC) -3,7 % GE Vernova (GEV) +6,5 % Genuine Parts (GPC) -3,6 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení
Pfizer's (PFE +1.78%) shares have significantly underperformed broader equities over the past three years. The company's reliance on its coronavirus portfolio has been a weakness, as vaccination rates have declined, while U.S. regulators have made it harder for patients to access COVID-19 vaccines, even when they want to. Pfizer has tried to move beyond this problem. The company has expanded its pipeline through acquisitions.
However, there could be even more buyout deals on the horizon for the drugmaker. Pfizer's CEO, Albert Bourla, recently boasted about the company's "very big balance sheet" and ability to pursue potentially transformative acquisitions, if need be, even after spending quite a lot on buyout deals over the past few years. If Pfizer decides to buy another company, several candidates would be particularly attractive, including Kailera Therapeutics (KLRA +5.62%). Here's why.
Image source: The Motley Fool.
Deepening its weight loss portfolio Like many pharmaceutical leaders, Pfizer recognizes the large and growing opportunity in the anti-obesity market. The drugmaker tried to develop several weight-loss medicines in-house, but for the most part, they were failures. Last year, Pfizer made an important move to bolster its position in this market: It acquired Metsera for up to $10 billion, including potential milestone payments. Metsera's lead asset, MET-097i, aced phase 2 studies. This medicine is now in phase 3 clinical trials. But what if Pfizer were to expand its weight-loss portfolio further to increase its chances of dominating this rapidly growing niche of the industry? Acquiring Kailera Therapeutics could help it do that.
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Kailera, which recently went public, boasts several attractive candidates for weight loss. The most advanced is ribupatide. What is noteworthy about this investigational medicine is that it mimics the actions of two separate gut hormones: GLP-1 and GIP. Some believe stimulating both hormones offers advantages not seen with medicines like MET-097i, which mimic only GLP-1. In fact, the current leader in the weight-loss market, Zepbound, is a dual GLP-1 and GIP agonist that has overtaken Wegovy, a single-pathway medication.
That doesn't guarantee that every dual GLP-1/GIP agonist will be successful. But if Pfizer were to acquire Kailera Therapeutics, including its leading candidate, ribupatide, the pharmaceutical leader would have a significantly stronger, more differentiated weight-loss pipeline. That becomes even more evident when we look at Kailera Therapeutics' other candidates. Kailera Therapeutics is developing an oral version of ribupatide.
Currently, no oral dual GLP-1/GIP agonist is approved for weight loss, even though oral anti-obesity medicines are seeing strong success. Pfizer already has some oral candidates, notably through its acquisition of Metsera, but adding oral ribupatide might be a significant improvement.
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Further, Kailera Therapeutics is developing KAI-4729, a medicine that mimics the action of three gut hormones: GLP-1, GIP, and glucagon. No such medicine is approved, but at least one is in late-stage studies, and it has posted what look like best-in-class efficacy results. We won't know for a while whether Kailera's KAI-4729 can match that, but the point is that its triple pathway approach has shown strong promise.
That's why it would be a great addition to Pfizer's portfolio in the case of an acquisition. Now, it wouldn't be cheap for Pfizer to buy Kailera Therapeutics. The biotech's current market cap is $2.7 billion. Kailera's shareholders will certainly demand a significant premium, especially given the company's promising candidates in one of the industry's fastest-growing therapeutic areas. But if Bourla is right and Pfizer does have the funds to pull it off, it may be worth it.
Is Pfizer stock a buy? We can't be sure that Pfizer will acquire Kailera Therapeutics. So, we should decide whether the company's shares are attractive independently of that. True, the drugmaker's financial results haven't been great, and it also recently suffered a clinical setback. Pfizer's sigvotatug vedotin failed to meet its primary endpoint in a phase 3 study in patients with lung cancer.
Even so, there are good reasons to be optimistic about Pfizer's future. Despite this setback, the company's pipeline, especially in oncology, remains deep, and over the next few years, we should see significant clinical and regulatory progress from Pfizer. It could also establish itself as a leader in the weight-loss market with just the candidates in its pipeline.
Also, several of Pfizer's medicines are performing well, including newer ones such as Abrysvo, a vaccine for the respiratory syncytial virus. Lastly, Pfizer has maintained its dividend program intact despite recent challenges, and it offers a juicy forward yield of 7.1%, making it a top pick for dividend seekers. It will take some patience, but investors who purchase Pfizer's shares today may be glad they did so down the line.
Passive income is the paycheck that arrives whether you show up or not. Wages depend on a functioning employer, a healthy economy, and the continued willingness of both to keep the seat warm. Dividend income depends on a company writing a check every 90 days, and for a handful of blue chips, that check has arrived without interruption for more than half a century.
Real estate can deliver similar cash flow, but it comes with tenants, repairs, and closing costs measured in weeks. High-yield dividend stocks settle in seconds, can be sold in any size, and require no phone calls at midnight. For an income-focused investor, that liquidity premium is often worth more than the last basis point of yield.
We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found a collection of companies that, combined, can generate over $6,700 a year in passive annual income if you invest just $50,000 in each stock at the time of this writing.
Johnson & Johnson Yield: 2.11% Shares for $50,000: 196.87 Annual Passive Income: $1,055 Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) is a $611 billion diversified healthcare business split across Innovative Medicine (oncology franchises like DARZALEX, TREMFYA, and CARVYKTI) and MedTech (Cardiovascular, Orthopaedics, Surgery, and Vision).
The company generated $24.06 billion in Q1 2026 revenue, up 9.9% year over year, and raised full-year guidance to $100.3 billion to $101.3 billion in sales.
The yield sits on the lower end of this list because the underlying business is a triple-A cash machine. That said, JNJ raised its quarterly payout 3.1% to $1.34 per share in Q1, extending its streak to 64 consecutive years of dividend increases, the longest track record in big pharma. Institutions own 76.83% of the float, led by Vanguard, BlackRock, and State Street.
PepsiCo Yield: 4.19% Shares for $50,000: 354.21 Annual Passive Income: $2,097 PepsiCo (NASDAQ:PEP) is the global snacks-and-beverages operator behind Pepsi, Lay’s, Doritos, Gatorade, Mountain Dew, Quaker, Cheetos, Tropicana, and poppi, split across six reporting segments. Q1 2026 revenue came in at $19.44 billion with core EPS of $1.61, beating consensus by 4.26%.
The yield has drifted higher on multi-quarter share-price weakness. Management just pushed the annualized dividend 4% higher to $5.92 per share starting with the June 2026 payment, the 54th consecutive annual increase, and authorized a new $10 billion share repurchase program through February 28, 2030.
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FY26 cash returns are guided to $8.9 billion. Institutions hold 80.92% of shares, with Vanguard and BlackRock again the largest holders.
Pfizer Yield: 7.20% Shares for $50,000: 2,093.80 Annual Passive Income: $3,601 Pfizer (NYSE:PFE) is a global biopharma running three commercial engines: Primary Care (Eliquis, Prevnar, Nurtec ODT, Abrysvo), Oncology (Ibrance, Padcev, Xtandi, Lorbrena, plus the Seagen assets), and Specialty Care (the Vyndaqel family). Q1 2026 revenue reached $14.45 billion, up 5.4% year over year, with adjusted EPS of $0.75 topping estimates.
The elevated yield reflects the post-COVID revenue reset from Comirnaty and Paxlovid. Management is prioritizing the payout and deleveraging over buybacks: $3.3 billion in repurchase authorization remains untouched with none planned for 2026.
The quarterly is $0.43 per share, held steady across 8 consecutive quarters, and the Vyndamax patent settlement extends U.S. exclusivity to June 2031.
The bottom line Combined, these 3 positions generate $6,753 in annual passive income on a $150,000 investment, a blended yield of 4.50%. Pfizer contributes $3,601, PepsiCo adds $2,097, and Johnson & Johnson rounds out the portfolio with $1,055.
Ticker Annual Income Share of Total PFE $3,601 53.3% PEP $2,097 31.1% JNJ $1,055 15.6% Total $6,753 100% Reinvest every distribution rather than spending it, and the share count grows quarter after quarter without a single additional dollar of fresh capital. That compounding is what separates a dividend portfolio from a bond ladder: the coupon size expands on its own. For investors building toward a future income floor, three checks a year from three separate industries is a durable place to start.
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Picking a good dividend stock for your portfolio can be challenging, especially when there are many attractive high-yielding options to choose from. And there's much more to consider than just the yield itself.
Below, I'll compare a couple of top dividend stocks: Pfizer (PFE 0.50%) and Verizon Communications (VZ 0.64%). While they're in different sectors, they both may be alluring options for dividend investors because they are blue chip stocks that have been known for generating plenty of dividend income over the years. Pfizer yields around 7.1% while Verizon's payout is closer to 6.7%. They also trade at less than nine times their expected future earnings (based on analyst expectations), making them attractive value buys.
But which one is the better buy? Let's take a look at which one is superior when evaluating multiple criteria.
Image source: Getty Images.
This is the crucial, first qualifying question to ask when evaluating dividend stocks. If the payout isn't safe, then nothing else really matters, because if it's in danger of being cut, the yield, track record, and dividend growth won't be of much comfort at that point.
Verizon's payout ratio based on earnings is around 67%. It's a good, healthy rate that you want to see from a quality dividend stock. Pfizer is a bit more complicated. Its payout ratio is more than 100%, but the reality is that its earnings are worse than they look due to acquisition-related expenses and non-cash items. This is where just looking at the payout ratio falls short.
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In terms of cash flow, the story looks a bit better for Pfizer as its free cash flow has been more than the cash dividends the company has paid out in two of the past three quarters. It can fluctuate, but generally, the payout looks well-supported. Over the trailing 12 months, Pfizer's free cash has been a bit lower than the dividends it has paid out, but with the company in the midst of cutting costs, that should improve.
Pfizer's dividend looks reasonably safe, but it's clear that the edge here goes to Verizon, which has generated a massive $20 billion in free cash over the past four quarters, well above the $11.5 billion it has paid in dividends.
Which dividend has been growing at a faster rate? Having plenty of room to pay dividends is one thing, but some companies hoard the cash or use it for other purposes rather than paying dividends. For dividend investors, it's important to consider which company actively rewards its shareholders and is generous with the dividend. Both of these stocks have been raising their payouts over the years, but one has been increasing them at a far higher rate than the other.
VZ Dividend data by YCharts
The edge clearly goes to Pfizer here. But it's worth noting the big spike around 2021 when Pfizer generated a boatload of revenue from its COVID vaccine and pill, and the slowing down of its dividend growth rate recently. When taking that into account, plus the restructuring it's undertaking right now, it's not as overwhelming an advantage for Pfizer anymore; its rate of increases may be much more modest in the years ahead.
Which company may be in better shape in the future? This is an important question to ask because when looking at dividend stocks, it's crucial to also consider where a business is headed. While the payout ratio and dividend growth rate may tell you about past results, that doesn't tell you anything about the future.
For Pfizer, the big risk is that the healthcare company is investing heavily in its future growth to offset losses in exclusivity. It might need to free up some cash to pursue acquisitions and invest in more growth opportunities. Investors haven't been encouraged thus far as the stock continues to trade at a low valuation; it's down close to 40% in five years.
For Verizon, its big unknown is related to SpaceX and how competitive its Starlink business may prove to be. It's a tough question to answer right now, but Verizon may face greater adversity and competition, leading to more aggressive pricing, margin pressure, and lower earnings and free cash flow.
Verizon, however, doesn't have to drastically alter its growth strategy and likely spend as heavily as Pfizer might; thus, it gets the edge based on their criteria.
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Verizon is the better-looking dividend stock right now The only metric that might make Pfizer look better than Verizon is dividend growth. But even then, when predicting future dividend growth, I think Verizon may be better positioned to increase its dividend faster, given its stronger financials.
While both of these stocks can be compelling dividend options for investors, I think Verizon is the far better and safer buy today.
Pfizer (PFE - Free Report) closed at $24.08 in the latest trading session, marking a -1.19% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.79%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.
Shares of the drugmaker witnessed a loss of 4.92% over the previous month, trailing the performance of the Medical sector with its gain of 7.53%, and the S&P 500's loss of 1.82%.
The upcoming earnings release of Pfizer will be of great interest to investors. The company's earnings report is expected on August 4, 2026. In that report, analysts expect Pfizer to post earnings of $0.68 per share. This would mark a year-over-year decline of 12.82%. In the meantime, our current consensus estimate forecasts the revenue to be $14.48 billion, indicating a 1.2% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.99 per share and a revenue of $61.85 billion, representing changes of -7.14% and -1.17%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pfizer. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Pfizer is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Pfizer has a Forward P/E ratio of 8.16 right now. This denotes a discount relative to the industry average Forward P/E of 15.99.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Although its growth rate has been cause for concern for investors in recent years, Pfizer (PFE 0.96%) is a stock that I don't think you should count out right now. The company is in the midst of a transition. It's been acquiring companies that it believes will position it for strong growth in the future.
One opportunity that the company isn't passing up on is the anti-obesity market. It added Metsera into the fold last year, which could prove to be a key acquisition that pays off for the business in the long haul. Although Pfizer doesn't have an approved GLP-1 weight loss drug in its portfolio just yet, here's why it could end up being a big player in that market.
Image source: Getty Images.
The company aims to be a leader in obesity therapies Late last year, Pfizer completed the acquisition of Metsera, valuing the enterprise at about $7 billion. By Pfizer's standards, that's not a terribly large acquisition. In 2023, it acquired oncology company Seagen for a whopping $43 billion. Both areas of healthcare, however, could be key to the company's long-term growth.
GLP-1 may be more underrated. That's because Metsera doesn't have any approved products in its portfolio today. However, Pfizer is optimistic that down the road, it could be a key player in the space. CEO Albert Bourla outlined the company's vision in the broader obesity space on the company's earnings call back in May:
We are also executing with focus to maximize the value of our Metsera acquisition. This underpins the strategy intended to position Pfizer as a leader in the next generation of obesity therapies. We intend to advance 10 phase 3 studies this year. We are targeting a first approval in 2028 from a portfolio that includes ultra-long-acting peptides with the potential, if successful, developed and approved for competitive efficacy and tolerability with a differentiated monthly maintenance dosing schedule.
Not only does Pfizer have many late-stage trials in the works, but focusing on monthly dosing could help it secure an advantage in the market, and it may be an attractive alternative to daily pills and currently approved injectables taken once per week. While Pfizer still has a long way to go and approval isn't guaranteed, the company has shown that it's serious in not missing out on the lucrative GLP-1 market.
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Buying Pfizer's stock can be a safer way to invest in GLP-1 There are loads of potential in GLP-1 stocks out there, but if you invest in a small company that doesn't have any approved products, it can involve taking on a lot of risk. With Pfizer, however, you'd be investing in a healthcare giant that's already large and established, and for which GLP-1 is just part of a broader growth strategy. It's a safer investment from that point of view, in that it's not as risky as a pre-revenue pharma stock.
Pfizer's success isn't a guarantee, but with the stock trading at only eight times its estimated future earnings (based on analyst expectations), you're buying it at a discount, effectively baking in some of that uncertainty and risky into the valuation. That's why I like Pfizer as a possible GLP-1 play: it has some exciting upside but may not have nearly as much downside risk as other, smaller stocks.
I keep buying Pfizer (NYSE:PFE | PFE Price Prediction) every time my brokerage cash builds up, and I am not slowing down. The market is treating this company like a value trap because COVID revenue is rolling off. I am treating it like a cash machine that just bought itself three extra years of patent life on one of its highest-margin franchises and is using the breathing room to fund the deepest late-stage pipeline I have seen from this company in a decade.
The conviction starts with a number that does not lie. I am collecting a 6.80% dividend yield on shares trading near $25.21, backed by a free cash flow yield of 6.32%. Pfizer paid out $2.4 billion in dividends in Q1 2026 alone, and the quarterly payout has climbed from $0.30 in 2016 to $0.43 today. That is income I can plan a retirement around.
The Patent Settlement Wall Street Slept On The catalyst that flipped my conviction from cautious to aggressive was the Vyndamax patent settlement extending U.S. exclusivity to June 2031. Wall Street had a devastating 2028/2029 patent cliff baked into the share price. CEO Albert Bourla told investors on the Q1 call that “starting in 2029, we will enter a five-year period of high single-digit revenue CAGR” and that the $17 billion LOE estimate is now more like $14 to $15 billion. That is billions of dollars in high-margin cash flow that the consensus model had erased. It is back.
The operating business is already proving the thesis. Q1 2026 revenue came in at $14.45B, beating the $13.80B consensus by 4.70%, with adjusted diluted EPS of $0.75 marking the fifth consecutive EPS beat. The non-COVID engine is firing on every cylinder: Padcev +39%, Nurtec ODT +41%, Eliquis +13%, Abrysvo +37%, Orgovyx +43%, and the launched and acquired portfolio grew 22% operationally. Management reaffirmed full-year 2026 guidance of $59.5B to $62.5B in revenue and $2.80 to $3.00 in adjusted EPS.
Then there is the pipeline I am effectively getting for free at a forward P/E of 9. Pfizer is launching roughly 20 pivotal studies in 2026, the Lyme disease vaccine candidate posted 73.2% efficacy in Phase 3, and the Metsera acquisition hands me ultra-long-acting GLP-1 optionality in the obesity market. Bourla himself has been accumulating Phantom Stock Units every month from March through June 2026, at prices ranging from $25.33 to $28.08.
The Risk I Am Not Pretending Away The real risk is policy and pricing. Comirnaty fell 59% and Paxlovid fell 63% in Q1, generic and biosimilar competition will pull roughly $1.5B off the top line in 2026, and Most-Favored-Nation pricing plus the TrumpRx platform could compress margins. I am watching it closely. The reason it does not derail my thesis: the dividend is covered by free cash flow, the Vyndamax extension fills the very gap these headwinds create, and the $7.2B cost savings program protects EPS while the pipeline matures.
Wall Street walked away from a $143.7 billion diversified pharma giant paying me almost 7% to wait. I will keep clicking buy until that math breaks.
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Few large-cap dividends generate as much skepticism as Pfizer (NYSE:PFE | PFE Price Prediction). The stock trades at $24.37, and the COVID franchise erosion has been brutal, with Comirnaty down 59% and Paxlovid down 63% in Q1 2026. Yet the dividend keeps coming. I want to know if that 7.27% yield is a gift or a warning.
The Dividend at a Glance Pfizer’s foundational portfolio in oncology, immunology, and cardiovascular care generates non-discretionary demand, and management recently declared its 351st consecutive quarterly payout.
Metric Value Annual Dividend $1.72 Dividend Yield 7.27% Most Recent Increase $0.42 to $0.43 (Q1 2025) Aristocrat Status No (cut in 2009) Cash Flow Covers the Dividend, but Just Barely This is where I get cautious. In 2025, operating cash flow was $11.71 billion and capex was $2.63 billion, leaving free cash flow of $9.08 billion against $9.77 billion in dividends paid. On adjusted earnings, however, the math looks better: full-year adjusted EPS of $3.22 against $1.72 in dividends works out to a 53% payout.
Metric TTM Assessment Adjusted Earnings Payout 53% Healthy FCF Payout 108% Concerning OCF Coverage 1.20x Adequate Leverage Is the Real Pressure Point Pfizer carries the Seagen acquisition debt, and it shows. Net debt-to-EBITDA sits at 3.26x, elevated for a pharma major, while interest coverage of 5.78x and debt-to-equity of 0.78 leave room to service obligations. The $7.2 billion cost savings target by end of 2027 matters because it directly defends the payout.
A Streak Reset by 2009, Rebuilt Since Pfizer cut from $0.32 to $0.16 quarterly in 2009 to fund the Wyeth deal. Since 2010, the dividend has climbed every year, but recent raises are minimal.
Year Annual Dividend 2026 $1.72 2025 $1.72 2024 $1.68 2023 $1.64 2022 $1.60 Management and Insiders Are Putting Money Where the Mouth Is CEO Albert Bourla told investors in Q1 2026: “We’re off to a strong start in 2026, and it reinforces our confidence that we will successfully navigate this defining period for Pfizer.” Backing that up, 11 directors simultaneously acquired phantom stock units on April 23, 2026 at $26.67 per share, and Bourla himself added six times in three months.
Verdict: Safe, but Watch the Cash Conversion Dividend Safety Rating: Safe. The earnings payout near 53% is comfortable, growth products like Eliquis, Padcev (+39%), and Vyndaqel (+8%) are scaling, and the Vyndamax patent now runs to June 2031. Pfizer fits an income-oriented thesis if the non-COVID portfolio offsets the $1.5 billion biosimilar headwind. The safety case weakens if FCF coverage stays under 1.0x for another full year, because management cannot lean on the balance sheet forever.
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A logo of Pfizer at the company’s booth at the 8th China International Import Expo (CIIE) in Shanghai, China, November 6, 2025.REUTERS/Maxim Shemetov/File Photo Purchase Licensing Rights, opens new tab
CompaniesSHANGHAI, June 29 (Reuters) - GLP-1 drugs from Pfizer (PFE.N), opens new tab and Innovent Biologics (1801.HK), opens new tab have passed a preliminary review to be potentially included in China's basic medical insurance drug catalogue, a list published by the National Healthcare Security Administration showed on Monday.
Pfizer's ecnoglutide and Innovent's mazdutide, approved in China as treatments for weight management and type II diabetes, belong to the class of GLP-1 receptor agonist drugs already included in China's state insurance list from drugmakers such as Novo Nordisk (NOVOb.CO), opens new tab, Eli Lilly (LLY.N), opens new tab and Guangzhou Innogen Pharmaceutical Group (2591.HK), opens new tab.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
Innovent shares were up about 7% after the announcement.
Novo's Ozempic was first added to China's reimbursement list in 2022, followed by Lilly's Mounjaro and Innogen's efsubaglutide alfa from this year for patients with type II diabetes. Inclusion in the national reimbursement list makes drugs more widely available to the public in a country with a population of 1.4 billion, though an increase in sales volume is often mitigated by lower prices.
Sales of Ozempic injector pens in mainland China, Taiwan and Hong Kong — Novo's largest market after the U.S. — slipped 7% to about 5.4 billion Danish crowns ($853 million) in 2025.
Sales of GLP-1 treatments in China through major e-commerce platforms Alibaba (9988.HK), opens new tab and JD.com (9618.HK), opens new tab totalled about 1.4 billion yuan ($207 million) in the first quarter of 2026, according to Jefferies.
A spokesperson for Pfizer did not immediately respond to a request for comment.
A spokesperson for Innovent told Reuters that in terms of medical insurance coverage in China only treatment for diabetes could be considered.
Reporting by Andrew Silver; Additional reporting by Ethan Wang and Ryan Woo; Editing by Tom Hogue and Muralikumar Anantharaman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Pfizer's (PFE +2.62%) shares have lost more than 50% of their value since late 2021 due to poor financial results. The company has tried to bounce back. Notably, it has expanded its pipeline through acquisitions, the most expensive one of which was its $43 billion buyout of Seagen, a cancer-focused drugmaker, in 2023. However, recent developments may suggest to some that Pfizer's efforts to turn things around are not going to work, and the stock may continue moving south.
Image source: The Motley Fool.
A clinical trial flop and a leadership shake-up One of the promising candidates Pfizer got access to through its acquisition of Seagen was sigvotatug vedotin, an investigational medicine for non-small cell lung cancer (NSCLC), one of the leading causes of cancer death in the world. This is a large market that could help Pfizer generate billions of dollars annually, provided it can gain a foothold in it with this therapy. Unfortunately, that now seems unlikely to happen.
Pfizer recently reported that in a phase 3 clinical trial in previously treated NSCLC patients, sigvotatug vedotin failed to show a statistically significant improvement in overall survival, a key endpoint in cancer clinical studies. In the trial, the medicine was pitted against docetaxel, a chemotherapy medication. These results make it unlikely that sigvotatug vedotin will make significant headway in this narrow indication.
Further, there was more negative news for Pfizer recently. On June 18, the pharmaceutical giant announced that its CFO, Dave Denton, would leave the company on Aug. 15. The market is sometimes wary of leadership changes, especially for a company that has been struggling as much as Pfizer has in recent years. It's also worth noting that the drugmaker will face even more challenges ahead. Pfizer's anticoagulant, Eliquis, one of its best-selling drugs, will lose patent exclusivity by the end of the decade. With all that going on, is it time to give up on Pfizer?
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Focus on the long-term It's a bit premature to definitively say that Pfizer's blockbuster acquisition of Seagen was a waste of money. After all, the company is already benefiting from some of the products the buyout added to its portfolio. For instance, Padcev, a medicine for bladder cancer, is currently an important growth driver for Pfizer. In the first quarter, sales from this therapy totaled $591 million, up 39% year over year. There are also other clinical trial candidates that Pfizer inherited from Seagen that could make significant headway in the next few years.
Elsewhere, Pfizer has other attractive pipeline products that may also help it rebound. The company's work in the weight-loss market finally got a boost -- also thanks to an acquisition -- after several internally developed products went nowhere. Pfizer's GLP-1, MET-097i, showed strong results in phase 2 studies and could eventually become an important medicine in this category. The drugmaker boasts other candidates in areas such as immunology, vaccines, and more.
And some of its newer approvals, such as Abrysvo, a respiratory syncytial virus vaccine, are also performing well. Lastly, Pfizer is a solid dividend stock, with a juicy forward yield of 7.3%. All these factors make the stock attractive, and the CFO change shouldn't alter its prospects much. Pfizer may not bounce back immediately, but the stock could eventually do so as it advances through clinical and regulatory milestones over the next five years. That's why its shares are still a buy.
Pfizer (PFE +2.58%) is offering dividend investors a huge 6.9% yield. To put that into perspective, the S&P 500 index (^GSPC 0.05%) has a tiny 1% yield right now, and the average pharmaceutical stock's yield is 1.6%. Dividend lovers will clearly find Pfizer's yield attractive.
However, that lofty yield is also a sign that this pharmaceutical company is deeply out of favor on Wall Street. If you have a long-term investment approach that allows you to practice what I call time arbitrage, you may want to consider buying this high-yield drugmaker.
Image source: Getty Images.
What's wrong with Pfizer? Pfizer's stock price is rough 60% below its late 2021 high. In fact, the share price is lower today than it was prior to the coronavirus pandemic. That's actually quite important, because Pfizer was one of the companies to develop a COVID vaccine. In typical Wall Street fashion, investors bid up the price, thinking that COVID would forever be a health scourge. Only the world learned to live with the illness, and vaccine sales didn't live up to lofty investor expectations.
The stock dropped, as you would expect. However, at the same time, Pfizer has also been struggling to develop new drugs to replace blockbusters that are set to lose patent protection in the next couple of years. Its biggest miss came in 2025, when it had to abandon a GLP-1 weight-loss drug it was working on. That wasn't a good look and leaves the company far behind its industry peers, Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO), in this emerging new drug category.
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Meanwhile, the company's dividend payout ratio sits at 130%. There's a good reason why dividend investors would be worried about buying this deeply out-of-favor stock.
Pfizer has worked through hard times before Investors got too excited about Pfizer during COVID. But it looks like they may be too pessimistic about the stock today. Yes, Pfizer is struggling, but the problems it faces are really fairly normal in the drug sector. Research and development don't work on a set timeline, even though patent expirations do. And Pfizer hasn't given up on finding new drugs. In fact, it has a number of important drug trials in the works and, notably, quickly bought a company with an attractive GLP-1 candidate after its own weight-loss drug flamed out. Simply put, it's doing the right things.
PFE Payout Ratio (TTM) data by YCharts
Meanwhile, dividends aren't paid out of earnings. They are paid out of cash flows. And comparing the dividend to free cash flow, using the cash dividend payout ratio, is a bit more reassuring. That ratio sits at about 100%, with management stating clearly that sustaining the dividend is a priority. That may mean leaning on the balance sheet for a while to pay the dividend, but given the company's long and successful history, it is highly likely that Pfizer eventually develops new, highly profitable drugs to support the quarterly shareholder payment.
Pfizer: A time arbitrage opportunity Wall Street tends to be myopically focused on the short term. If you think in decades and not days, you can use the market's short-term focus to your benefit. Pfizer's history suggests it will muddle through this weak patch and return to a position of strength, though it may take a little while. While there's no guarantee of a positive future, it seems far more likely that Pfizer will discover exciting new drugs than that it will end up in bankruptcy court. If you can handle a little near-term uncertainty, you can collect a huge 6.9% yield while you wait for better days.
Looking for stocks that pay dividends? You may have come across pharmaceutical outfit Pfizer (PFE +2.58%) in your search. After all, its forward-looking dividend yield of 7.1% is one of the highest among blue chip stocks right now.
So how many shares of this drugmaker would you need in order to collect, say, $5,000 worth of annual dividend income? If you annualize its quarterly per-share payment of $0.43, 2,907 shares would do the trick. That's about $69,940 worth of this stock, assuming you're getting in at today's price.
The question is: Is this actually a stock you can count on to continue paying -- and growing -- its dividend?
Image source: Getty Images.
Preparing for the future The growing concern here is the impending expiration of the patents protecting several of Pfizer's breadwinning drugs. These include the blood thinner Eliquis, cancer-fighting drugs Ibrance and Xtandi, and pneumonia vaccine Prevnar 13. All of these will lose patent protection within the next couple of years, posing a threat to roughly one-third of the company's revenue.
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But take a step back and look at what the company has done -- and is doing -- to prepare for this inevitable tumble off the patent cliff. Since 2022, it has acquired Arena Pharmaceuticals, Biohaven Pharmaceuticals, Global Blood Therapeutics, Seagen, and Metsera.
These deals have brought drugs with varying degrees of readiness and marketability under Pfizer's umbrella, but they've dramatically boosted its potential in the oncology and anti-obesity markets. All told, the pharmaceutical outfit intends to bring at least eight new blockbuster drugs to market as a result of these acquisitions, although more are certainly possible.
The only catch? We won't start seeing meaningful impacts from these investments until after 2028.
All this dealmaking hasn't exactly been cheap, either. It's still arguably been worth it, though, particularly to income investors. While it may not drive widening profits or produce wild profit growth, it will provide reliable cash flow that supports continued dividend payments.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PFE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Pfizer (PFE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this drugmaker have returned -9.5%, compared to the Zacks S&P 500 composite's -1.4% change. During this period, the Zacks Large Cap Pharmaceuticals industry, which Pfizer falls in, has gained 4.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Pfizer is expected to post earnings of $0.68 per share for the current quarter, representing a year-over-year change of -12.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $2.99 points to a change of -7.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $2.86 indicates a change of -4.3% from what Pfizer is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Pfizer.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Pfizer, the consensus sales estimate for the current quarter of $14.4 billion indicates a year-over-year change of -1.7%. For the current and next fiscal years, $61.64 billion and $59.75 billion estimates indicate -1.5% and -3.1% changes, respectively.
Last Reported Results and Surprise HistoryPfizer reported revenues of $14.45 billion in the last reported quarter, representing a year-over-year change of +5.4%. EPS of $0.75 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $13.82 billion, the reported revenues represent a surprise of +4.56%. The EPS surprise was +5.63%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Pfizer is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Pfizer. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
