Pfizer Fourth-quarter results released on Tuesday beat expectations even as demand for Covid products fell, while Reaffirms its modest 2026 guidance That unnerved investors in December.

The pharmaceutical giant is seeking long-term investments in its pipeline, including its $10 billion acquisition of obesity biotech company Metserain response to declining sales of new coronavirus products and declining sales of older drugs. On Tuesday, Pfizer demonstrated the promise of the investment while also reporting interim data showing Metsera’s obesity shot can be taken once a month and achieve stable weight loss.

Additionally, Pfizer is on track to reduce costs by approximately $7.7 billion by the end of 2027 as part of two separate initiatives.

Here’s how the company’s fourth-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):

• Earnings per share: Adjusted 66 cents, expected 57 cents
• income: US$17.56 billion, expected US$16.95 billion

Pfizer reported fourth-quarter revenue of $17.56 billion, down about 1% from the same period last year. This is mainly due to lower demand for its COVID-19 vaccine and antiviral drug Paxlovid.

The company had a net loss of $1.65 billion, or 29 cents per share. This compares with net income of $410 million, or 7 cents per share, in the same period last year.

Excluding certain items, including restructuring charges and costs related to intangible assets, the company earned 66 cents per share in the quarter.

Pfizer expects adjusted profit in 2026 to be between $2.80 and $3 per share, with total revenue between $59.5 billion and $62.5 billion. Compared with 2025 revenue, these sales will be essentially flat.

Pfizer previously said the bleak revenue outlook was partly due to lower sales of its COVID-19 vaccine and antiviral drug Paxlovid, with sales expected to fall by about $1.5 billion year-on-year to $5 billion.

The company also noted that it expects sales to decline by another $1.5 billion year-over-year due to the loss of market exclusivity for certain products. Some blockbuster drugs, such as the company’s pneumonia vaccine Prevnar, are facing more competition from rivals.

In December, Pfizer Chief Financial Officer Dave Denton tell investors The company’s 2026 guidance also includes “price compression and margin compression” as it plans to offer “deeper discounts” in its Medicaid business, as Landmark drug pricing agreement Clash with President Donald Trump.

Under the agreement, Pfizer agreed to sell its existing drugs to Medicaid patients at the lowest prices offered by other developed countries and guarantee the same “most-favored-nation” pricing for its new drugs to Medicare, Medicaid and commercial payers. In return, the company will receive a three-year tariff exemption.

Pfizer’s Xeljanz and Xeljanz XR, which treat rheumatoid arthritis and other inflammatory diseases, selected The third round of medical insurance drug price negotiations will be held in January. The new negotiated prices will take effect in 2028.