Pfizer (PFE) AI Stock Analysis

• Market Cap: $152.45B
• Dividend Yield: 6.65%
• Average Volume (3M): 45.35M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.42
• Revenue Growth: 4.44%
• EPS Growth: 128.96%
• Country: US
• Employees: 81,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.66
• Shares Outstanding: 5,686,267,600
• 10 Day Avg. Volume: 37,971,219
• 30 Day Avg. Volume: 45,354,248
• PEG Ratio: -4.31
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 15.59
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 3.50
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 13.03
• 1Y Price Target: $28.87
• Price Target Upside: 7.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 21
• EPS Forecast (FY): 2.96
• Revenue Forecast (FY): $61.18B

• Rating: 64 Neutral
• Price Target: $29.00 ▲(8.17% Upside)
• Action: Downgraded Date: 02/27/26
• Date: Action: Downgraded 02/27/26

The score is primarily constrained by only mid-level financial performance (volatile revenues, lower cash flow than prior peaks, and elevated leverage). Offsetting this, technicals are constructive with price above key moving averages and positive MACD, and shareholder yield is attractive. Earnings-call commentary is moderately positive on guidance and productivity/pipeline progress, but tempered by COVID and LOE headwinds plus GAAP volatility.

Positive Factors

Regulatory approval expands oncology franchise

The FDA approval of encorafenib in combination regimens converts an accelerated approval into a full, tradable commercial indication for metastatic BRAF V600E colorectal cancer, enlarging Pfizer’s oncology addressable market, strengthening durable revenue streams and commercial presence in a high‑unmet area.

New launches and acquisitions driving revenue

A $10.2B contribution from recent launches and acquisitions with ~14% operational growth provides structural diversification away from legacy products, demonstrating Pfizer’s ability to integrate BD and scale new assets into sustainable revenue pools over the medium term.

Margin expansion and productivity programs

Sustained gross margin expansion and targeted productivity savings reflect structural improvements in operational leverage. Delivering multi‑year manufacturing and cost realignment savings supports margin durability, funds reinvestment into R&D, and improves cash conversion over the next several years.

Negative Factors

Elevated leverage versus prior years

Leverage materially increased from 2021–2022 levels, leaving less financial flexibility. Higher debt burdens raise interest and refinancing risk, constrain M&A or buyback optionality if earnings soften, and reduce the company’s cushion against operational or portfolio shocks over the medium term.

Free cash flow well below peak

Material decline in free cash flow versus prior peak years limits the pace of reinvestment, BD activity, and shareholder returns without raising leverage. Persistently lower cash conversion reduces resilience to LOE or trial setbacks and raises sensitivity to margin or revenue volatility.

COVID decline, LOE and impairments create headwinds

Simultaneous COVID revenue normalization, sizeable impairments and imminent LOE compress near‑term top line and produce GAAP volatility. These structural headwinds reduce visible earnings power, pressure cash generation, and require sustained offsetting growth from new launches and pipeline success.

Pfizer Business Overview & Revenue Model

Company Description

Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic and women's health under the Premarin family and Eliquis brands; biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands; and sterile injectable and anti-infective medicines, and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands. The company also provides medicines and vaccines in various therapeutic areas, such as pneumococcal disease, meningococcal disease, tick-borne encephalitis, and COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands; biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands; and amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands. In addition, the company is involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as disease control and prevention centers. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Akcea Therapeutics, Inc; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

How the Company Makes Money

Pfizer primarily generates revenue through the sale of prescription pharmaceuticals and vaccines. The company’s revenue model is supported by a diverse range of products across multiple therapeutic areas, allowing it to capitalize on various market segments. Key revenue streams include sales of patented drugs, which often command higher prices until they face generic competition, and sales of vaccines, particularly during public health emergencies or vaccination campaigns. Significant partnerships, such as the collaboration with BioNTech for the development of the COVID-19 vaccine, have also contributed to Pfizer's earnings, enhancing its market share and expanding its product offerings. Additionally, Pfizer invests heavily in research and development to innovate and bring new therapies to market, which further drives revenue growth.

Pfizer Financial Statement Overview

Summary

Financials show recovery from the 2023 trough (net income and gross margin improved, and free cash flow remains positive), but overall quality is held back by volatile/declining revenues versus recent years, materially lower cash generation than the 2021–2022 peak, and higher leverage (debt-to-equity ~0.70) that reduces flexibility if profitability softens.

Income Statement

Profitability rebounded meaningfully after the 2023 trough: net income improved from about $2.1B (2023) to ~$8.0B (2024) and ~$7.8B (2025), with stronger gross margins (rising to ~70% in 2025). However, the top line remains volatile, including a sharp revenue decline in 2025 (down ~33%) following the post-2022 normalization, and overall earnings power is still well below the 2021–2022 peak period.

Balance Sheet

The balance sheet is sizable with equity around $93.1B (2025) supporting the business, but leverage is elevated versus the company’s 2021–2022 profile: debt is ~$64.8B (2025) and debt-to-equity is ~0.70 (higher than ~0.36 in 2022). Returns on equity have recovered (to ~8–9% in 2024–2025) but remain modest relative to the peak years, leaving less cushion if profitability softens again.

Cash Flow

Cash generation is positive but clearly below prior highs. Operating cash flow was ~$11.7B (2025) and free cash flow ~$9.1B, down from the 2021–2022 run-rate (free cash flow near ~$26–30B). Free cash flow covers a solid portion of earnings (about ~0.78x in 2025), but free cash flow declined year over year in 2025 and operating cash flow as a share of revenue remains relatively low versus earlier periods.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	62.58B	63.63B	59.55B	100.33B	81.29B
Gross Profit	44.01B	41.85B	30.34B	62.09B	46.88B
EBITDA	15.10B	18.13B	9.56B	41.03B	30.79B
Net Income	7.77B	8.02B	2.13B	31.36B	22.15B
Balance Sheet
Total Assets	208.16B	213.40B	226.50B	197.21B	181.48B
Cash, Cash Equivalents and Short-Term Investments	13.60B	20.48B	12.69B	22.73B	31.07B
Total Debt	67.42B	66.99B	70.84B	34.86B	37.00B
Total Liabilities	121.39B	124.90B	137.21B	101.29B	104.01B
Stockholders Equity	86.48B	88.20B	89.01B	95.66B	77.20B
Cash Flow
Free Cash Flow	9.08B	9.84B	4.79B	26.03B	29.87B
Operating Cash Flow	11.71B	12.74B	8.70B	29.27B	32.58B
Investing Cash Flow	-1.35B	2.65B	-32.28B	-15.78B	-22.55B
Financing Cash Flow	-10.30B	-17.14B	26.07B	-14.83B	-9.82B

Pfizer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFE, the sentiment is Positive. The current price of 26.81 is below the 20-day moving average (MA) of 27.13, above the 50-day MA of 26.12, and above the 200-day MA of 24.45, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFE.

Pfizer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVS	77 Outperform	$306.84B	19.02	32.80%	2.87%	11.53%	-15.21%
JNJ	73 Outperform	$579.34B	18.81	33.78%	2.50%	6.05%	―
AMGN	71 Outperform	$203.21B	22.84	96.65%	3.00%	11.03%	65.22%
MRK	68 Neutral	$289.54B	14.46	36.19%	3.12%	1.59%	58.02%
PFE	64 Neutral	$152.45B	18.21	8.67%	6.65%	4.44%	128.96%
ABBV	63 Neutral	$402.17B	96.82	-361.58%	2.87%	7.40%	-53.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Pfizer Corporate Events

Pfizer Revises 2025 Revenue Guidance to $62 Billion

On December 16, 2025, Pfizer announced its financial guidance for the full year 2026, while revising its 2025 revenue guidance to approximately $62.0 billion. The company expects 2026 revenues to range between $59.5 and $62.5 billion, with a decrease in COVID-19 product revenues and impacts from loss of exclusivity on certain products. Pfizer anticipates continued investment in its pipeline and acquired assets to fuel long-term growth, with adjusted diluted EPS for 2026 projected between $2.80 and $3.00. The financial outlook reflects Pfizer’s strategic focus on innovative medicines and vaccines, aiming to create long-term value for shareholders.

The most recent analyst rating on (PFE) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Pfizer stock, see the PFE Stock Forecast page.