Pfizer Inc.

Solid Q2 2026 performance; guidance raised (revenue up, EPS reaffirmed) - Reported Q2 revenue: $15B, +1% YoY operationally (and +5% excluding COVID). Adjusted EPS: $0.77, exceeding expectations. - 9 of last 10 quarters beat revenue consensus and 10/10 quarters beat adjusted EPS. - Full-year 2026 revenue guidance raised by $0.5B at midpoint to $60.5B–$62.5B. - Adjusted diluted EPS guidance reaffirmed: $2.80–$3.00, but includes an ~$0.10 headwind from Innovent Biologics (recorded as acquired in-process R&D expense in 3Q upon $650M upfront payment).

COVID headwinds remain the main downside driver; management assumes seasonal timing - Guidance update reflects revised COVID-19 expectations ~ $4B down from $5B earlier; low infection levels are expected to persist. - COVID usage risk persists (e.g., Paxlovid utilization limited by low incidence). - COMIRNATY sales assumed to occur toward year-end (vaccination season); international COVID has meaningful government-contract secured portions.

Cost discipline + productivity programs are a major lever; additional savings expanded - Management expects strong gross margin (mid-70s range; Q2 adjusted gross margin: 76%) and continued operating margin strength (Q2 adjusted operating margin 35%). - Productivity/cost programs expanded: - Already on track to deliver most of ~$7.2B net cost savings by end-2026. - New outlook: +~$2.5B additional net cost savings from 2027–2029 (incremental expansion). - Manufacturing optimization next phase: ~$1.5B additional net cost savings (with realization starting in 2027). - Total net cost savings now ~ $9.7B through 2029. - Dividend commitment reiterated: maintain and over time grow the dividend.