UBS Pfizer Inc. (PFE.US): In-Line Quarter, Higher Confidence in Revenue Durability 2029+ from Tafamidis Settlements
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UBS notes that Pfizer delivered an in-line financial performance for the second quarter of 2026, successfully meeting the Street's expectations. The pharmaceutical giant reported core earnings per share of USD 0.68 and total revenues of USD 13.3 billion, both precisely matching consensus estimates. However, the report emphasizes that the most significant development of the quarter revolves around enhanced long-term revenue visibility.
Specifically, the recently finalized patent litigation settlement surrounding Tafamidis effectively eliminates a major source of revenue uncertainty extending into 2029 and beyond. This crucial resolution has substantially bolstered corporate management's confidence regarding the long-term sustainability of the company's revenue trajectory, removing a persistent overhang that previously constrained investor sentiment.
During the quarter, declining revenues from COVID-19-related products were meaningfully offset by an 8% year-over-year growth in non-COVID franchise revenues. The oncology division delivered a particularly robust performance, posting a 12% revenue increase driven primarily by solid demand for Xtandi and Ibrance. Management explicitly reaffirmed its full-year 2026 financial guidance, projecting core EPS between USD 2.45 and USD 2.65, alongside total revenues ranging from USD 61 billion to USD 64 billion. Pfizer plans to execute USD 5 billion in share repurchases throughout 2026. UBS maintains its Buy rating with a target price of USD 35.
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