Pfizer Inc. (PFE) FY2025 10-K and Q2 FY2026 10-Q Summary

Business

From the FY2025 Form 10-K, accession 0000078003-26-000026.

Pfizer is a research-based global biopharmaceutical company that discovers, develops, manufactures, markets, sells and distributes prescription medicines and vaccines in approximately 200 countries and territories. Most of its revenues come from the manufacture and sale of biopharmaceutical products. Total revenues were $62.6 billion in 2025, of which $25.5 billion, 41%, came from operations outside the U.S. (39% in 2024, 53% in 2023). Twelve products each generated more than $1 billion of revenue in 2025 and together accounted for 65% of total revenues; Eliquis alone was 13%. Revenues exceeded $500 million in each of 12 countries outside the U.S. in 2025, and China was the largest non-U.S. market at 5% of total revenues. The company was incorporated in Delaware on June 2, 1942.

Segments. In 2025 Pfizer managed commercial operations through three operating segments, Biopharma, Pfizer CentreOne (PC1) and Pfizer Ignite, with Biopharma the only reportable segment. Biopharma is the innovative, science-based biopharmaceutical business. PC1 is the contract development and manufacturing organization and a supplier of specialty active pharmaceutical ingredients. Pfizer Ignite, which sold R&D services to biotech companies, was discontinued in 2025 and is being wound down; beginning in the first quarter of 2026 the structure consists of two operating segments, Biopharma and PC1, with Biopharma again the only reportable segment.

Commercial structure. Effective January 1, 2026 the Biopharma commercial organization comprises Pfizer U.S. Commercial, Pfizer International Commercial, and a new Global Hospital and Biosimilars organization, into which certain off-patent branded and generic sterile injectables and biosimilars were transitioned out of the Specialty Care and Oncology portfolios.

Portfolio. Primary Care spans internal medicine and cardiovascular metabolic disease (Eliquis and brands past exclusivity), migraine (Nurtec ODT/Vydura, Zavzpret), the all-ages vaccine portfolio (the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba) and Paxlovid for COVID-19. Specialty Care spans inflammation and immunology (Xeljanz, Enbrel outside the U.S. and Canada, Cibinqo, Litfulo, Eucrisa, Velsipity), rare disease including amyloidosis, hemophilia and endocrine disease (the Vyndaqel family, Genotropin, BeneFIX, Xyntha, Somavert, Ngenla, Hympavzi) and certain anti-infectives and immunoglobulins (Zavicefta outside the U.S. and Canada, Octagam, Panzyga). Oncology includes Ibrance, Xtandi, Padcev, Adcetris, Tivdak, Lorbrena, Braftovi/Mektovi, Talzenna, Tukysa and Elrexfio.

How the economics are shared. A material part of the portfolio runs through collaborations, so reported revenue is not the whole economics:

• Comirnaty, jointly developed and commercialized with BioNTech; development costs and commercialization gross profits are shared equally (excluding mainland China, Hong Kong, Macau and Taiwan, where Pfizer has no rights).
• Eliquis, jointly developed and commercialized with BMS; Pfizer funds 50%–60% of development costs depending on the study, and profits and losses are shared equally except in certain countries where Pfizer commercializes and pays BMS a percentage of net sales.
• Xtandi, with Astellas, which holds exclusive ex-U.S. rights; U.S. gross profits, losses and commercialization costs shared equally, with tiered royalties on international sales.
• Padcev, co-developed and jointly commercialized with Astellas; Pfizer records U.S. net sales and handles U.S. distribution, with costs and profits shared; ex-U.S., Pfizer has North and South America and Astellas the rest of the world, with profit-sharing and royalty mechanisms intended to approximate an equal split.
• Adcetris (Takeda), Tivdak (Genmab), Orgovyx (SMPS), territory splits with royalty or profit-share arrangements.

Revenues from these arrangements are generally reported in Alliance revenues, except where Pfizer sells directly and except for most Comirnaty and Padcev revenue, which sits in Product revenues.

Exclusivity. Pfizer states plainly that it anticipates a significant reduction of revenue from patent-based or regulatory exclusivity expiries from 2026 through 2030, with the rate of reduction expected to accelerate. The Eliquis position is the most consequential: in the U.S., Pfizer and BMS settled with a number of generic filers permitting launch of a generic on April 1, 2028, and after resolving litigation against three remaining generics in Pfizer's favor those parties cannot launch until the 2031 expiry of the formulation patent. Both the composition-of-matter patent expiring November 2026 and the 2031 formulation patent may face future challenge; if the formulation patent were held invalid or not infringed on appeal, settled generics could launch on November 21, 2026, and if both patents fell, launch could be immediate. The apixaban basic patent and associated SPC were invalidated in the U.K. Elsewhere, Vyndaqel's Japanese polyneuropathy patent expires August 2026 (Vynmac has Japanese regulatory exclusivity to March 2029), and interim patent-term extensions are in place or pending for Xtandi and Mektovi.

Pricing and the U.S. government. In September 2025 Pfizer announced a voluntary agreement with the Trump Administration to make certain U.S. drug prices more comparable to those in other developed countries, and to participate in the TrumpRx.gov platform, where most of its primary care treatments and some specialty brands are offered at discounts averaging 50% and ranging as high as 85%. The agreement also provided a three-year grace period from Section 232 tariffs conditioned on further U.S. manufacturing investment. Separately, under the Inflation Reduction Act, CMS selected Eliquis in the first Medicare price-negotiation cohort (Maximum Fair Price effective January 1, 2026), Ibrance and Xtandi for prices effective January 1, 2027, and Xeljanz on January 27, 2026 for prices effective January 1, 2028. The IRA Medicare Part D redesign reduced 2025 revenues by approximately $1 billion, with no material incremental impact expected in 2026 against that baseline.

Strategy. Pfizer's stated 2026 priorities are to maximize the value of key transactions, deliver on critical R&D milestones, invest to maximize post-2028 growth, and scale AI across the business. Capital allocation rests on three pillars: reinvesting in the business, maintaining and over the long term growing the dividend, and the potential to resume share repurchases after de-levering.

Risk factors

From the FY2025 Form 10-K, accession 0000078003-26-000026.

Loss of exclusivity and generic/biosimilar entry. The single dominant risk. Pfizer expects a significant revenue reduction from patent and regulatory exclusivity expiries across 2026–2030, accelerating over the next few years, and its patents on best-selling products are repeatedly challenged. Generic competitors can launch "at risk" while litigation is pending; a finding of invalidity can end market exclusivity abruptly. In China, quality consistency evaluation and volume-based procurement continue to drive price cuts and volume loss on off-patent products.

Concentration. Twelve products were 65% of 2025 revenues and Eliquis alone 13%. Business development has also been concentrated by therapeutic area, the Metsera and Seagen acquisitions are large bets on obesity and oncology, both intensely competitive. A significant customer's difficulty, or continued consolidation of pharmacy chains, wholesalers and PBMs, is itself a revenue risk.

Pricing and reimbursement. Price controls, international reference pricing including most-favored-nation pricing, mandatory rebates, CMMI pilots (HHS issued proposed rules for mandatory pilots in December 2025), ACA subsidy and state Medicaid cuts, and further IRA selections could each lower revenue. Pfizer also flags risks in the MFN Agreement itself, unfavorable impacts to pricing and access, and effects on competitive positioning across global markets.

Managed care. Consolidated MCOs and PBMs increasingly place branded products on higher tiers or non-preferred status, demand rebates for formulary placement, direct patients to third-party assistance programs, and disallow manufacturer copay assistance from counting toward deductibles.

Development and regulatory approval. Candidates fail at every stage; endpoints, submission dates and launch dates can slip; the company notes increasing inconsistency and unexpected changes in FDA determinations tied to workforce reductions, personnel movement and policy change. Advisory-committee and recommendation risk is called out specifically: in January 2026 the CDC unilaterally reduced the number of immunizations routinely recommended for all children in the U.S., and Pfizer describes the vaccine landscape as becoming more challenging.

Post-approval data. Post-marketing studies can force label changes or loss of approval. The named case is Oxbryta, voluntarily withdrawn from all markets in September 2024; in October 2025 the EMA adopted a negative benefit-risk opinion recommending the marketing authorization remain suspended.

Research and development. Product lines must be replenished to offset exclusivity losses; costs of development keep rising; balancing current growth, investment for future growth and shareholder return is described by the company as a major challenge.

Global operations. Currency and interest-rate movement, trade tensions and tariffs, capital controls, emerging-market instability, and political or military conflict. In 2025, 41% of revenues came from international operations, including 21% from Europe and 12% from China, Japan and the rest of Asia Pacific.

Manufacturing and supply. Regulatory inspection failures, recalls, shortages and third-party manufacturer failures. The industry-wide nitrosamine review is ongoing; the 2021 Chantix recall over N-nitroso-varenicline is cited, with Chantix returning to market in 2025 after updated acceptable-intake guidance.

Collaborations and third parties. Heavy dependence on collaborators, contract research organizations and outsourced providers whose activities Pfizer does not control, with substantial upfront payments that can depress earnings or cash flow.

Business development, leverage and integration. Transactions may fail to deliver anticipated revenue or synergies; Pfizer financed portions of the Seagen and Metsera acquisitions with long-term debt plus short-term borrowings, and notes the debt reduces operating and financial flexibility and could pressure credit ratings.

Intangible assets and goodwill. IPR&D of approximately $21.8 billion at December 31, 2025 is called out as high-risk and most exposed to impairment, alongside newly acquired or recently impaired indefinite-lived brand assets, where even small declines in outlook can force a charge.

Cost control and unusual events. Risk that the enterprise-wide cost realignment and manufacturing optimization programs fail to deliver projected benefits, with loss of accumulated knowledge, morale damage and key-employee attrition during transitions.

Legal matters. Patent litigation, product liability, consumer fraud, off-label promotion, securities, antitrust, environmental and tax proceedings, plus government investigations that can bring criminal and civil fines, corporate integrity or deferred prosecution agreements, and reputational harm.

Intellectual property and technology. Failure to obtain or maintain protection; third-party infringement claims with treble damages for willful infringement; heavy reliance on IT and cloud systems that are the target of frequent, increasingly sophisticated cyber-attacks, including adversarial AI techniques. For the fiscal year ended December 31, 2025 Pfizer reported no cybersecurity incidents that materially affected, or were reasonably likely to materially affect, the company.

AI. Regulatory frameworks for AI remain uncertain; outputs can be false, misleading or non-reproducible; performance can degrade; anticipated cost savings from AI, automation and digital enablement may not be realized in the expected amounts or timeframes.

COVID-19 products, pandemics, climate and market risk. Comirnaty and Paxlovid demand is endemic, seasonal and hard to forecast; equity investment fair-value changes flow through net income; pension plans carry investment and discount-rate volatility; physical and transitional climate risks touch both Pfizer's operations and its supply chain.

Management's discussion, fiscal 2025

From the FY2025 Form 10-K, accession 0000078003-26-000026.

Headline. Total revenues of $62.6 billion, down 2% against 2024; net cash flow from operations of $11.7 billion, down 8%; reported diluted EPS of $1.36, down 3%; adjusted diluted EPS (a non-GAAP measure) of $3.22, up 4%.

Revenue. Total revenues fell $1.0 billion from $63.6 billion, an operational decline of $1.3 billion (2%) partly offset by $247 million of favorable foreign exchange. The operational decline was driven by COVID-19 products, partly offset by growth in the Vyndaqel family, Eliquis, Padcev, Lorbrena, Abrysvo and oncology biosimilars. Among the larger movers on an operational basis: Eliquis up 7%, Prevnar family up 1%, Vyndaqel family up 16%, Xtandi up 8%, Padcev up 22%, Nurtec ODT/Vydura up 13%, Abrysvo up 36%, Ibrance down 6%, Xeljanz down 7%, Comirnaty down 20% and Paxlovid down 59%.

Costs and charges. Income from continuing operations before taxes fell $503 million to $7.5 billion from $8.0 billion. Research and development expenses decreased $385 million, driven by a $490 million net reduction from pipeline focus and optimization initiatives including expanded digital capabilities, plus lower compensation-related expense. Acquired in-process R&D expenses rose $1.5 billion, driven by a $1.35 billion charge on an in-licensing agreement with 3SBio and $150 million on an agreement with YaoPharma. Amortization of intangible assets fell $413 million. Other (income)/deductions, net moved $2.3 billion unfavorably, driven by $1.6 billion of higher intangible asset impairments, a $1.1 billion swing to net losses on equity securities, the non-recurrence of $945 million of realized gains on the partial Haleon sale in 2024, and $490 million of higher legal charges; offsets included an $832 million favorable pension and postretirement swing, $478 million of lower net interest expense on reduced commercial paper, and the non-recurrence of a $420 million charge tied to the discontinued DMD program.

Cost programs. The Realigning Our Cost Base program, launched in the fourth quarter of 2023 and twice expanded in 2025, was expected to deliver approximately $5.7 billion of total net cost savings through 2026, $5.1 billion achieved through 2025 with roughly $600 million remaining, primarily in SI&A. Pfizer first set that $5.7 billion target in April 2025 on a through-2027 horizon and now expects it to be complete by the end of 2026. A further approximately $500 million of savings from pipeline focus and optimization initiatives is being reinvested into R&D programs by the end of 2026. The first phase of the Manufacturing Optimization program, launched in the second quarter of 2024, was on track for approximately $1.5 billion of net cost savings by the end of 2027, with about $600 million realized by year-end 2025. Pfizer expects about $1 billion of annual synergies from Seagen by the end of 2026 (about $800 million achieved by year-end 2025, one-time costs about $1.7 billion) and about $600 million of annual synergies from Metsera by the end of 2026 (one-time costs about $700 million, incurred primarily 2025 through 2027). Management states that long-term improvement in gross margin remains a key focus over the next few years.

Cash flow. Investing activity reflected $6.9 billion of cash paid for Metsera net of cash acquired and $0.7 billion lower Haleon proceeds than in 2024, partly offset by a $3.8 billion increase in net proceeds from short-term investments. Financing reflected $9.7 billion of long-term debt issuance proceeds and a $1.9 billion decrease in net short-term repayments, against a $4.5 billion increase in long-term debt repayments.

Balance sheet and capital allocation. Pfizer's long-term debt is rated A2 by Moody's and A by S&P, both stable. On December 12, 2025 the board declared a first-quarter 2026 dividend of $0.43 per share, payable March 6, 2026, the 349th consecutive quarterly dividend. The remaining share-purchase authorization was $3.3 billion at December 31, 2025, with no repurchases during 2025. Pfizer sold its remaining Haleon stake for $6.3 billion in the first quarter of 2025 and, in January 2026, announced an agreement to sell its ViiV investment for $1.9 billion subject to regulatory clearances. The eighth and final TCJA repatriation tax payment of $2.6 billion was due April 15, 2026. Other commitments totaled $5.0 billion ($1.6 billion within twelve months), and Pfizer expected to spend approximately $2.5 billion on property, plant and equipment in 2026.

Operating environment. Pfizer flagged the U.S. Supreme Court's February 2026 decision on executive authority to impose tariffs under the International Emergency Economic Powers Act as not expected to be material to its consolidated financial statements, while noting it does not reach the Section 232 pharmaceutical investigation. On COVID-19, it expected 2026 Comirnaty commercial-market share and revenue phasing similar to 2025, concentrated in the second half, while acknowledging vaccination rates could continue to decline on further recommendation changes, with that expectation already built into 2026 guidance. Paxlovid revenues were likewise expected to skew to the second half and to move with infection rates, with lower demand built into guidance.

Current quarter, Q2 2026 (quarter ended June 28, 2026)

From the Form 10-Q for the quarter ended June 28, 2026, accession 0000078003-26-000095, and the second-quarter earnings release furnished on Form 8-K, accession 0000078003-26-000094.

Revenue. Total revenues rose $381 million, or 3%, to $15.0 billion from $14.7 billion, an operational increase of $164 million (1%) plus $217 million of favorable foreign exchange. Excluding Comirnaty and Paxlovid, revenues grew 5% operationally; revenues of launched and acquired products grew 18% operationally. For the first six months, total revenues rose $1.1 billion, or 4%, to $29.5 billion, an operational increase of 2% and 6% excluding the COVID-19 products. By segment for the quarter, Biopharma was $14,661 million (up 2%) and Pfizer CentreOne $373 million (up 7%); U.S. revenue was flat at $8,857 million while international rose 7% to $6,177 million.

Product detail for the quarter (worldwide, with operational growth): Eliquis $2,425 million, up 19%, on higher U.S. net price from lower rebates and channel mix plus higher global demand, against generic entry and price erosion in certain international markets; Vyndaqel family $1,762 million, up 8%; Prevnar family $1,337 million, down 4%, on lower U.S. pediatric and adult vaccination rates and adult market-share erosion; Ibrance $1,058 million, flat; Padcev $667 million, up 23%, on first-line la/mUC share and launch uptake in cisplatin-ineligible MIBC; Xtandi $534 million, down 6% on lower U.S. net price; Nurtec ODT/Vydura $421 million, up 17%; Lorbrena $354 million, up 37%; Comirnaty $261 million, down 34%, with U.S. revenue of $38 million against $176 million, reflecting a narrower vaccination recommendation; Abrysvo $208 million, up 43%; and Paxlovid $21 million, down 95%, with no U.S. revenue against $328 million a year earlier.

Earnings. The quarter produced a loss from continuing operations before taxes of $653 million, against income of $3.0 billion a year earlier. Reported net loss was $248 million and reported loss per share $(0.04), against net income of $2,910 million and diluted EPS of $0.51. Adjusted income was $4,440 million and adjusted diluted EPS $0.77, essentially flat against $4,434 million and $0.78. For the six months, reported net income was $2,440 million ($0.43 per diluted share) against $5,877 million ($1.03), and adjusted diluted EPS was $1.52 against $1.69, down 10%.

What drove the swing. Other (income)/deductions, net moved $3.0 billion unfavorably in the quarter to a $3,716 million deduction. Within it: $4,325 million of intangible asset impairments, composed of $3.8 billion against IPR&D tied to the Phase 3 study of sigvotatug vedotin in second-line metastatic non-squamous NSCLC after unfavorable clinical trial results, and $525 million against Oxbryta (voxelotor) developed technology rights after July 2026 engagement with the FDA established no viable pathway to return the product to the U.S. market; $842 million of charges for certain legal matters; and $255 million from changes in the fair value of contingent consideration. Offsetting these was a $1,870 million net gain on the sale of the ViiV investment. Restructuring charges and certain acquisition-related costs were $457 million against a $18 million credit a year earlier. Research and development expenses rose $327 million in the quarter and $614 million in the six months, driven by roughly $240 million and $420 million respectively of anticipated spending on certain oncology and obesity candidates. Selling, informational and administrative expenses were roughly flat in the quarter and down $74 million in the six months. The effective tax rate was 62.4% for the quarter (a $407 million benefit on a pre-tax loss) and 2.1% for the six months.

Cash and capital. Operating cash flow for the six months was $3,450 million against $1,753 million. Investing provided $2,891 million against $7,225 million, the decline reflecting the non-recurrence of $6.3 billion of Haleon proceeds partly offset by $1.9 billion from the ViiV sale. Financing used $6,519 million against $8,423 million. Pfizer invested $5.3 billion in internal R&D and approximately $170 million in business development transactions in the first half, and returned $4.9 billion to shareholders as dividends ($0.86 per share). Dividends of $0.43 per share were declared in April 2026 (paid June 12, 2026) and in June 2026 (payable September 1, 2026). No repurchases have been made in 2026 and the remaining authorization stands at $3.3 billion, with guidance assuming none for the year. Pfizer had a $7.0 billion committed revolving credit facility maturing October 2030 plus $226 million of additional lines of credit, essentially all unused. Ratings remained P-1/A2 (Moody's) and A-1/A (S&P), both stable. Management notes that given the anticipated unfavorable impact from exclusivity expiries over the next few years, leverage is expected to remain around current levels, or modestly higher, through the transition.

Deals and arrangements in the period. Metsera, acquired November 13, 2025, was recorded at total consideration fair value of $8.0 billion ($7.8 billion net of cash acquired), $65.60 per share in cash plus a contingent value right of up to $20.65 per share (up to $2.3 billion) across three milestones: $4.60 per share on the Phase 3 start of the MET-097i plus MET-233i combination, $6.40 per share on FDA approval of monthly MET-097i monotherapy and $9.65 per share on FDA approval of the monthly combination. Provisionally recorded were $7.9 billion of IPR&D intangibles, $2.1 billion of goodwill, $1.6 billion of net deferred tax liabilities and $643 million of assumed contingent consideration; the allocation is not final. In February 2026 Pfizer and Sciwind Biosciences announced a commercialization collaboration giving Pfizer exclusive rights to the GLP-1 receptor agonist ecnoglutide in Mainland China, with Sciwind eligible for up to $495 million in upfront, regulatory and sales milestones. On March 31, 2026, which fell in Pfizer's second fiscal quarter of 2026 (the first quarter having ended March 29, 2026), Pfizer completed the exit of its 11.7% ViiV investment for $1.875 billion in cash; the resulting gain is therefore a second-quarter item. In May 2026 Pfizer signed a global licensing and collaboration agreement with Innovent covering 12 early-stage and de novo cancer medicines, antibody-drug conjugates with novel payloads and multi-specific antibodies, with a $650 million upfront payment, up to $9.85 billion in development, regulatory and commercial milestones, up to double-digit royalties, and U.S./U.K./EU profit sharing on four co-developed programs. In June 2026 Pfizer entered a development funding arrangement with Abingworth for up to $300 million across 2026–2029 to co-fund development of a specified treatment, with up to $180 million of approval-based and up to $420 million of sales-based milestones payable to Abingworth and mid-single-digit royalties subject to an annual cap.

Guidance. Pfizer raised full-year 2026 revenue guidance by $500 million at the midpoint to a range of $60.5 to $62.5 billion, from $59.5 to $62.5 billion, reflecting approximately $1.5 billion of better-than-expected non-COVID performance against a cut in expected COVID-19 product revenue to approximately $4 billion from approximately $5 billion. Adjusted diluted EPS guidance was reaffirmed at $2.80 to $3.00, absorbing an approximately $0.10 impact from a $650 million acquired IPR&D charge for the Innovent agreement to be recorded in the third quarter. Adjusted SI&A expense guidance is $12.5 to $13.5 billion, adjusted R&D $10.5 to $11.5 billion, and the effective tax rate on adjusted income approximately 15.0%, assuming roughly 5.74 billion diluted weighted-average shares and no repurchases.

Exclusivity and policy in the period. Pfizer now expects an unfavorable 2026 revenue impact from patent-based or regulatory exclusivity expiries of approximately $1.1 billion. On the IRA, the Eliquis Maximum Fair Price took effect January 1, 2026 and negotiated prices for Ibrance and Xtandi are effective in 2027; for Xeljanz, CMS determined that bona fide marketing of a generic still exists, so no Maximum Fair Price will be finalized or take effect. On trade, the U.S. Government announced Section 232 tariffs on imported patented pharmaceuticals and their ingredients on April 2, 2026, with duties up to 100% and exemptions for onshoring commitments.

Pipeline in the period. Approvals since the 10-K include Veppanu (vepdegestrant) in ER+/HER2-, ESR1-mutated advanced or metastatic breast cancer (U.S., May 2026, commercialization rights subsequently out-licensed by Arvinas and Pfizer to Rigel Pharmaceuticals); Hympavzi in inhibitor patients (EU May 2026, U.S. June 2026) and in pediatric patients 6 to under 12 (U.S., June 2026); Braftovi with cetuximab and FOLFOX in first-line BRAF V600E mCRC (EU, June 2026); Ibrance in HR+/HER2+ maintenance (U.S., June 2026); and Padcev with pembrolizumab in perioperative MIBC (EU, June 2026). In June 2026 the Phase 3 SigVie-002 study of sigvotatug vedotin in previously treated advanced non-squamous NSCLC missed its primary endpoint of a statistically significant overall survival improvement against docetaxel, the trigger for the $3.8 billion impairment. Enrollment in osivelotor studies resumed in the first quarter of 2026 after the FDA permitted initiation outside sub-Saharan Africa.

Subsequent events

Post-period developments disclosed in the Form 10-Q for the quarter ended June 28, 2026, accession 0000078003-26-000095, and the earnings release furnished on Form 8-K, accession 0000078003-26-000094. The quarter ended June 28, 2026; the report was filed August 4, 2026.

• Innovent collaboration closed July 10, 2026. The global licensing and collaboration agreement with Innovent Biologics, Inc., signed in May 2026 and covering 12 early-stage and de novo cancer medicines, closed after quarter end. Its terms and its third-quarter accounting effect are described above.

• Additional cost-program savings announced in the third quarter of 2026. Under the Realigning Our Cost Base program, Pfizer announced $1.0 billion of additional anticipated net cost savings from further productivity enhancements across commercial, R&D and enabling functions, to be realized in SI&A from 2027 through 2029, with approximately $2.0 billion of one-time costs through 2029 (of which $800 million relates to Biopharma). Total expected net savings from that program rise to approximately $6.7 billion through 2029, and total expected program costs to approximately $7.3 billion. Under the Manufacturing Optimization program, Pfizer announced the next phase, network structure changes, product portfolio enhancements and additional operational efficiencies, expected to deliver approximately $1.5 billion of additional savings through 2029, some beginning in 2027, with one-time costs of approximately $4.0 billion (roughly 60% non-cash accelerated depreciation and write-downs, 40% cash severance, implementation and exit costs) incurred through 2029. Total expected savings from that program rise to approximately $3.0 billion, against total expected costs of approximately $5.4 billion. Together the announcements represent approximately $2.5 billion of additional anticipated savings to be realized from 2027 through 2029.

• Section 232 tariffs and the final U.S. Government agreements. The Section 232 tariffs announced April 2, 2026 on imported patented pharmaceuticals and their ingredients became effective for Pfizer on July 31, 2026. Pfizer reached final binding agreements with the U.S. Government ratifying the arrangements first announced in September 2025, voluntarily committing to measures to bring certain U.S. drug prices closer to those in other developed countries, to allow U.S. patients to buy certain medicines at significant discounts, and to invest further in U.S. manufacturing. Under those agreements, the applicable Section 232 tariff rate for Pfizer products is zero until January 20, 2029.

• Oxbryta withdrawn in the U.S. In July 2026 Pfizer engaged with the FDA on its assessment of the voxelotor data and it was determined there is no viable pathway to return Oxbryta to the U.S. market. Consistent with the FDA's recommendation, on July 31, 2026 Pfizer notified the FDA that it is voluntarily withdrawing the Oxbryta new drug applications.

• New Comirnaty patent litigation. In July 2026 Translate Bio, Inc., Translate Bio MA, Inc., Sanofi Vaccines US Inc. and VaxServe, Inc. filed a complaint in the U.S. District Court for the District of New Jersey against Pfizer and Pharmacia & Upjohn Co. LLC alleging that Comirnaty infringes eight U.S. patents, seeking unspecified monetary damages. This adds to the Comirnaty patent action the GSK Group brought in the U.S. District Court for the District of Delaware in April 2024 and expanded in August 2024, which alleges infringement of eight U.S. patents and remains pending.

• Promosome patent case decided in Pfizer's favor. In July 2026 the Unified Patent Court, Local Division Munich, issued a decision finding the Promosome LLC patent not infringed and invalid. Promosome had sued in January 2025 alleging that Comirnaty infringed a European patent in force only in France, Germany and Sweden.

• Post-period regulatory actions. Padcev with pembrolizumab was approved in the U.S. in July 2026 as neoadjuvant treatment continued after cystectomy as adjuvant treatment for MIBC. The Comirnaty 2026-2027 formula (JN.1) was approved in the EU in July 2026 for individuals 6 months and older. The FDA accepted a filing in July 2026 for Talzenna in combination with Xtandi in DNA damage repair-deficient mCSPC.

• Dividend. The $0.43 per share dividend declared in June 2026 was payable September 1, 2026 to shareholders of record at the close of business on July 24, 2026.