Pfizer (PFE) AI Stock Analysis

• Market Cap: $155.62B
• Dividend Yield: 6.65%
• Average Volume (3M): 48.18M
• Price to Earnings (P/E): 20.1
• 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: 5,685,707,500
• 10 Day Avg. Volume: 37,254,330
• 30 Day Avg. Volume: 48,175,844
• PEG Ratio: -4.31
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 10.04
• 1Y Price Target: $28.62
• Price Target Upside: 7.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $30.00 ▲(12.57% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is driven primarily by solid—but not accelerating—financial performance (strong margins but declining revenue and weaker free-cash-flow trend). Technicals are supportive with price above major moving averages and positive MACD. Valuation is helped by a reasonable P/E and high dividend yield. Earnings call factors are constructive on guidance and productivity, but tempered by COVID decline, LOE headwinds, and impairment-related volatility.

Positive Factors

Margin and operational efficiency

High gross margin and sustained operating margins reflect durable manufacturing and pricing advantages across key products. This margin headroom supports funding of R&D, acquisitions, and dividends while absorbing product mix shifts, enhancing long-term resilience despite revenue cyclicality.

Obesity pipeline progress

Positive Phase 2b PF‑3944 data and planned pivotal programs signal a structurally attractive entry into the high-growth obesity market. Monthly dosing differentiation and advancing Phase 3 plans can produce a multi-year revenue stream and diversify Pfizer’s portfolio beyond legacy franchises.

Capital allocation and reinvestment

Consistent large-scale dividends combined with substantial R&D and business-development spending shows disciplined capital allocation. This balance sustains shareholder returns while fueling pipeline expansion and inorganic growth, supporting medium-term earnings durability and strategic positioning.

Negative Factors

Free cash flow deterioration

A marked decline in free cash flow growth and weakened cash conversion reduce financial flexibility for capex, acquisitions, and dividends. If the trend persists over the next 2–3 quarters, it can constrain reinvestment and elevate reliance on external financing for strategic initiatives.

Loss‑of‑exclusivity (LOE) headwinds

Anticipated LOE-driven revenue compression is a structural near‑term headwind that erodes core sales and margin contribution. Over 2026–2028 this pressure can materially slow top-line growth and force reprioritization of resources toward newer assets, impacting medium-term revenue visibility.

Impairments and GAAP volatility

Large non‑cash impairments indicate portfolio reprioritization and that prior investments failed to meet expectations. This raises execution risk around pipeline forecasting and creates GAAP earnings volatility, complicating long‑term earnings quality and investor visibility into sustainable profits.

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

Strong gross margin (71.19%) and healthy EBIT/EBITDA margins support operating strength, but negatives include declining revenue (-1.64%), reduced net margin (15.64%), weaker ROE (10.91%), and falling free cash flow growth (-16.58%), which temper the overall financial profile.

Income Statement

Pfizer's income statement reflects a strong gross profit margin of 71.19% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 15.64% from previous highs, suggesting increased expenses or reduced revenue. The revenue growth rate is negative at -1.64%, indicating a decline in sales compared to the previous period. Despite this, the EBIT and EBITDA margins remain healthy at 23.05% and 33.72%, respectively, showcasing operational efficiency.

Balance Sheet

Pfizer maintains a moderate debt-to-equity ratio of 0.66, reflecting a balanced approach to leveraging. The return on equity is 10.91%, which, while positive, has decreased from previous years, indicating reduced profitability relative to shareholder equity. The equity ratio stands at 44.45%, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement shows a decline in free cash flow growth at -16.58%, which could impact future investments and shareholder returns. The operating cash flow to net income ratio is 0.36, indicating that operating cash flow covers net income adequately. The free cash flow to net income ratio is 0.79, suggesting that a substantial portion of net income is converted into free cash flow, though this has decreased from previous 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	0.00	213.40B	226.50B	197.21B	181.48B
Cash, Cash Equivalents and Short-Term Investments	0.00	20.48B	12.69B	22.73B	31.07B
Total Debt	0.00	66.99B	70.84B	34.86B	37.00B
Total Liabilities	-93.10B	124.90B	137.21B	101.29B	104.01B
Stockholders Equity	93.10B	88.20B	89.01B	95.66B	77.20B
Cash Flow
Free Cash Flow	0.00	9.84B	4.79B	26.03B	29.87B
Operating Cash Flow	0.00	12.74B	8.70B	29.27B	32.58B
Investing Cash Flow	0.00	2.65B	-32.28B	-15.78B	-22.55B
Financing Cash Flow	0.00	-17.14B	26.07B	-14.83B	-9.82B

Pfizer Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.65
• 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 Neutral. The current price of 26.65 is below the 20-day moving average (MA) of 26.75, above the 50-day MA of 25.69, and above the 200-day MA of 24.15, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 34.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PFE.

Pfizer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	78 Outperform	$301.96B	16.71	―	3.12%	1.59%	58.02%
NVS	77 Outperform	$312.45B	22.81	31.14%	2.87%	11.53%	-15.21%
PFE	73 Outperform	$155.62B	20.13	―	6.65%	4.44%	128.96%
JNJ	73 Outperform	$590.40B	22.20	35.03%	2.50%	6.05%	―
AMGN	71 Outperform	$204.70B	26.69	106.10%	3.00%	11.03%	65.22%
ABBV	60 Neutral	$404.24B	95.96	9999.00%	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.

Pfizer Completes $5 Billion Public Offering

On November 21, 2025, Pfizer Inc. completed a significant public offering of various notes totaling $5 billion, with maturities ranging from 2027 to 2065. This financial move, conducted under a shelf registration statement, involved major financial institutions as underwriters and is expected to impact Pfizer’s financial strategy and market positioning.

The most recent analyst rating on (PFE) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Pfizer stock, see the PFE Stock Forecast page.

Pfizer Completes Acquisition of Metsera for $7 Billion

On November 13, 2025, Pfizer completed its acquisition of Metsera, Inc., a Delaware-based company, for approximately $7.0 billion. The acquisition includes contingent value rights for additional payments tied to the achievement of specific milestones related to Metsera’s GLP-1 receptor antagonist and amylin analog therapies, potentially impacting Pfizer’s strategic positioning in the pharmaceutical industry.

The most recent analyst rating on (PFE) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Pfizer stock, see the PFE Stock Forecast page.