Pharmaceuticals giant Pfizer (PFE) is set to report its Q1 earnings on May 5. The stock is up over 7% in the year-to-date as investors get excited about its drug pipeline tackling obesity, cancer and cardiovascular disease.
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According to TipRanks’ Options tool, options traders expect about a 4.22% move in either direction in PFE stock in reaction to its Q1 results.
What Wall Street Expects
Wall Street expects Pfizer to report Q1 revenues of $13.82 billion, up from around $13.7 billion in the same period last year. Its earnings per share are expected to come in at $0.74, down from last year’s $0.92 per share.
Will PFE beat these expectations? As can be seen below, it has a strong track record in doing just that.
Key Issues Ahead of Earnings
The company reported full year 2025 adjusted diluted EPS of $3.22 versus $3.11 in 2024. It returned $9.8 billion to shareholders via dividends and invested $10.4 billion in internal R&D and $8.8 billion in business development.
In Q1, higher sales of products like cancer drug Padcev are expected to have boosted results alongside the RSV vaccine Abrysvo, which has likely gained from favorable net price and market share in the United States and abroad.
However, sales of some other key products like arthritis treatment Xeljanz are likely to have declined. Lower revenues from COVID products, Comirnaty and Paxlovid, are likely to have hurt top-line growth.
Pfizer plans to start 20 pivotal studies in 2026, including 10 for the ultra-long-acting obesity candidates added from the recent $7 billion Metsera acquisition. Pfizer is hoping that its recently launched and acquired products and a strong pipeline will help revive top-line growth toward the end of the decade.
However, it faces several challenges in the near term mainly declining sales of its COVID products due to lower vaccination rates and COVID infection rates.
Is PFE a Good Stock to Buy Now?
On TipRanks, PFE has a Moderate Buy consensus based on 8 Buy, 13 Hold and 2 Sell ratings. Its highest price target is $36. PFE stock’s consensus price target is $29.17, implying a 10.80% upside.
