AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Patent protection limits direct generic substitution, while Padcev's differentiated mechanism and reported share gains support a current product advantage. These benefits are product-specific, and collaboration economics are shared.
durability · 1/4 · Protection is finite, patent challenges are active and management anticipates unfavorable exclusivity expirations over the next few years. Missing expiry schedules prevent a reliable duration estimate.
customer dependency · 2/4 · Recurring substantial product revenues and Padcev uptake provide indirect evidence of continuing treatment demand. Adult vaccine share erosion demonstrates that dependence is uneven; the passages establish no broad switching-cost advantage.
erosion resilience · 2/4 · Padcev gains and higher first-half Biopharma revenue demonstrate some portfolio offset to declining products. Realized vaccine share erosion, government pricing and anticipated exclusivity losses limit resilience; segment earnings did not grow with revenue.
Pricing power38
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · Observed outcomes show weak pricing: Ibrance had lower U.S. net pricing, and Medicare Part D redesign reduced 2025 revenue by approximately $1 billion. Product growth does not establish price increases.
retention · 2/4 · Product revenues, reported higher Ibrance demand and Padcev share gains indicate continuing demand indirectly. Vaccine share erosion and sharp COVID-19 product revenue declines make retention mixed; no customer retention rate is inferred.
margin resilience · 2/4 · Biopharma maintained substantial earnings despite pricing constraints, but first-half earnings declined as revenue rose and consolidated cost of sales increased as a share of revenue. Royalty-estimate effects and foreign exchange explain part of the deterioration, limiting attribution to pricing.
contractual freedom · 1/4 · Mandatory manufacturer discounts and the government-set Eliquis price effective January 2026 materially restrict pricing discretion. The passages do not establish unrestricted terms across the remaining portfolio.
Predictability60
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 30.00
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 9.78
Financial strength18
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 12.29
- netDebtEbitGrade
- 0.00
- interestCoverageGrade
- 25.59
- currentRatioGrade
- 32.79
- Debt / FCF (x)
- 7.14
- Net debt / operating income (x)
- 6.25
- Current ratio (x)
- 1.16
Capital allocation78
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 5.39
- 3-year average dilution (%)
- 0.44
- 3-year average SBC / revenue (%)
- 1.23
- cashConversionGrade
- 100.00
Management44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 1/4 · Actual expense reductions and lower reported debt provide some favorable evidence. However, large historical inventory write-offs and further 2026 intangible impairments indicate fragile allocation outcomes alongside substantial debt. The Seagen purchase price documents spending, not a demonstrated return; anticipated savings are not realized results.
incentive alignment · 2/4 · Disclosed incentives incorporate revenue, income, cash flow and long-term shareholder return. Excluding certain acquired IPR&D expenses from incentive results weakens accountability for investment costs, and 54.7% advisory support indicates substantial shareholder dissatisfaction. Ownership and realized-pay coverage remain incomplete.
execution · 2/4 · Padcev share gains, realized administrative expense reductions and manufacturing continuity demonstrate operating execution. Vaccine share erosion and significant impairments show uneven outcomes. This assessment uses operating results indirectly rather than accepting management's general performance claims.
governance · 2/4 · An independent auditor found effective financial reporting controls, and disclosed Audit Committee and Lead Independent Director responsibilities provide oversight mechanisms. Low compensation-vote support tempers the assessment; these disclosures do not demonstrate exceptional board effectiveness.
Evidence
Generic Products. Generic pharmaceutical manufacturers pose one of the biggest competitive challenges to our branded small molecule products because they can market a competing version of our product after the expiration or loss of our patent protection, or exclusivity, and often charge much less.
Business—Competition—Generic Products · Filed 26/02/2026
•Padcev (enfortumab vedotin-ejfv) is a first-in-class ADC that is directed to Nectin-4, a protein located on the surface of cells and highly expressed in bladder cancer, that is being co-developed and jointly commercialized with Astellas.
Business—Collaboration agreements—Padcev · Filed 26/02/2026
$ 648 $ 534 21 Growth primarily driven by increased market share in first-line locally advanced or metastatic urothelial cancer (la/mUC), as well as launch uptake in the cisplatin-ineligible indication for muscle-invasive bladder cancer, partially offset by a one-time favorable impact associated with transition to a wholesaler distribution model in the U.S.
MD&A—Product revenue discussion—Padcev · Filed 04/08/2026
We fund between 50% and 60% of all development costs depending on the study, and profits and losses are shared equally except in certain countries where we commercialize Eliquis and pay a percentage of net sales to BMS.
Business—Collaboration agreements—Eliquis economics · Filed 26/02/2026
Other Revenue Information Significant Revenues by Product The following provides additional revenue information for several of our major products: (MILLIONS) Three Months Ended Six Months Ended PRODUCT PRIMARY INDICATION OR CLASS June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 TOTAL REVENUES $ 15,034 $ 14,653 $ 29,484 $ 28,367 GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA)(a) $ 14,661 $ 14,305 $ 28,822 $ 27,746 Primary Care $ 5,503 $ 5,535 $ 11,046 $ 11,226 Eliquis(b) Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 2,425 2,003 4,591 3,926 Prevnar family Active immunization to prevent pneumonia, invasive disease and otitis media caused by Streptococcus pneumoniae 1,337 1,383 3,027 3,043 Nurtec ODT/Vydura Acute treatment of migraine and prevention of episodic migraine 421 359 774 607 Comirnaty Active immunization to prevent COVID-19 261 381 493 945 Abrysvo Active immunization to prevent RSV infection 208 143 388 274 FSME-IMMUN/TicoVac Active immunization to prevent tick-borne encephalitis disease 132 109 213 172 Paxlovid COVID-19 in certain high-risk patients 21 427 207 918 All other Primary Care Various 699 731 1,353 1,340 Oncology $ 4,165 $ 4,034 $ 7,991 $ 7,528 Ibrance HR-positive/HER2-negative metastatic breast cancer and first-line maintenance treatment for adults with HR+, HER2+ locally advanced or metastatic breast cancer 1,058 1,049 2,066 2,026 Padcev Locally advanced or metastatic urothelial cancer and cisplatin-ineligible/decline MIBC 667 542 1,258 967 Xtandi(c) mCRPC, nmCRPC, mCSPC, nmCSPC 534 566 978 1,023 Lorbrena ALK-positive metastatic NSCLC 354 251 659 473 31 PFIZER INC.
Note 13C—Significant revenues by product · Filed 04/08/2026
Our vaccines have and may continue to face competition, including from the introduction of alternative vaccines or “next-generation” vaccines prior to or after the expiration of their patents, which may adversely affect our future results.
Business—Competition—Vaccines · Filed 26/02/2026
patents that are discussed below, patent rights to certain of our products or those of our collaboration/licensing partners are being challenged in various other jurisdictions.
Notes—Patent litigation outside the United States · Filed 04/08/2026
$ 748 $ 860 (13) QTD and YTD declines primarily driven by: •lower vaccination rates in the pediatric and adult indications in the U.S., as well as market share erosion for the adult indication in the U.S., partially offset by: •growth in certain international markets primarily driven by continued increased demand in both the adult and pediatric indications.
MD&A—Vaccine revenue discussion—Demand and adult market-share erosion · Filed 04/08/2026
Given the anticipated unfavorable impact from patent-based or regulatory exclusivity expiries over the next few years, we expect leverage to remain around current levels, or modestly higher, through this transition period.
MD&A—Capital allocation—Expected exclusivity expirations and leverage · Filed 04/08/2026
Further, our revenues will be adversely affected by the termination or expiration of collaboration and co-promotion agreements that we have entered into and that we may enter into from time to time.
Risk Factors—Collaboration and co-promotion agreements · Filed 26/02/2026
We continue to monitor and evaluate the implementation of the IRA, including the Medicare Drug Price Negotiation Program (MDPNP) and its government-set Maximum Fair Price (MFP) which became effective for Eliquis on January 1, 2026.
MD&A—Operating environment—Government-set Eliquis pricing · Filed 04/08/2026
The IRA also made significant changes to the Medicare Part D benefit design (IRA Medicare Part D Redesign), which took effect beginning in 2025 and negatively impacted our 2025 revenues by approximately $1 billion.
Business—Government regulation and price constraints—Realized Medicare Part D impact · Filed 26/02/2026
and developed markets and a favorable adjustment of rebate accruals for international markets related to prior periods, offset by lower net price in the U.S.
MD&A—Ibrance—Year-to-date demand and lower U.S. net price · Filed 04/08/2026
Costs and Expenses Three Months Ended Six Months Ended (MILLIONS) June 28, 2026 June 29, 2025 % Change June 28, 2026 June 29, 2025 % Change Cost of sales $ 4,092 $ 3,778 8 $ 7,640 $ 6,624 15 Percentage of Total revenues 27.2 % 25.8 % 25.9 % 23.4 % Selling, informational and administrative expenses 3,411 3,415 — 6,372 6,446 (1) Research and development expenses 2,809 2,482 13 5,299 4,685 13 Acquired in-process research and development expenses 16 2 * 153 11 * Amortization of intangible assets 1,185 1,211 (2) 2,368 2,421 (2) Restructuring charges and certain acquisition-related costs 457 (18) * 557 660 (16) Other (income)/deductions—net 3,716 739 * 4,577 1,692 * Second Quarter of 2026 vs.
MD&A—Costs and expenses · Filed 04/08/2026
The increase in Cost of sales as a percentage of revenues in the first six months of 2026 was primarily due to the non-recurrence of a favorable revision of our estimate of accrued royalties in the first quarter of 2025, and an unfavorable impact of foreign exchange.
MD&A—Cost of sales—Royalty estimate and foreign exchange effects · Filed 04/08/2026
Specifically, this program requires manufacturers to provide a 10% discount on branded prescriptions in the initial coverage phase and a 20% discount in the catastrophic phase.
Business—Government regulation—Mandatory manufacturer discounts · Filed 26/02/2026
The total fair value of the consideration transferred was $44.2 billion ($43.4 billion, net of cash acquired).
Note 2—Seagen acquisition consideration · Filed 26/02/2026
In 2023, Biopharma earnings included approximately $6.2 billion of inventory write-offs and related charges to Cost of sales mainly due to lower-than-expected demand for our COVID-19 products.
Segment reporting—2023 COVID-19 inventory write-offs · Filed 26/02/2026
Additional information about the intangible assets that were impaired during 2026 follows: Six Months Ended Fair Value(a) June 28, 2026 (MILLIONS) Amount Level 1 Level 2 Level 3 Impairment IPR&D(b) $ 5,600 $ — $ — $ 5,600 $ 3,800 Developed technology rights(b) — — — — 525 Total $ 5,600 $ — $ — $ 5,600 $ 4,325 (a)The fair value amount reflects the remaining fair value for the asset that has been impaired as of the date of impairment, as this asset is not measured at fair value on a recurring basis.
Notes—2026 intangible asset impairments · Filed 04/08/2026
Selling, informational and administrative expenses decreased $74 million in the first six months of 2026, primarily reflecting: •lower spending of $130 million in corporate enabling functions; and •a decrease of $100 million in marketing and promotional spend on various products from more targeted investments and ongoing productivity improvements, partially offset by: •a $90 million unfavorable impact of foreign exchange; and •an increase of $70 million in implementation costs associated with our cost realignment program.
MD&A—Realized selling, informational and administrative expense reductions · Filed 04/08/2026
AND SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED BALANCE SHEETS (MILLIONS) June 28, 2026 December 31, 2025 (Unaudited) Assets Cash and cash equivalents $ 976 $ 1,142 Short-term investments 10,723 12,454 Trade accounts receivable, net of allowance for doubtful accounts: 2026—$423; 2025—$427 12,490 11,874 Inventories 9,945 10,654 Current tax assets 3,702 3,967 Other current assets 3,522 2,808 Total current assets 41,358 42,898 Long-term investments 1,559 1,621 Property, plant and equipment, net of accumulated depreciation: 2026—$18,104; 2025—$17,386 19,029 19,317 Identifiable intangible assets, net 47,053 53,731 Goodwill 71,419 71,264 Noncurrent deferred tax assets and other noncurrent tax assets 10,774 9,699 Other noncurrent assets 9,939 9,631 Total assets $ 201,131 $ 208,160 Liabilities and Equity Short-term borrowings, including current portion of long-term debt: 2026—$2,605; 2025—$2,997 $ 2,699 $ 3,154 Trade accounts payable 4,581 5,240 Dividends payable 2,451 2,445 Income taxes payable 653 3,103 Accrued compensation and related items 2,554 3,610 Other current liabilities 19,709 19,432 Total current liabilities 32,646 36,984 Long-term debt 60,495 61,641 Pension and postretirement benefit obligations 1,937 2,041 Noncurrent deferred tax liabilities 1,964 2,401 Other taxes payable 3,816 3,591 Other noncurrent liabilities 14,780 14,725 Total liabilities 115,639 121,385 Commitments and Contingencies Common stock 482 481 Additional paid-in capital 95,033 94,469 Treasury stock (115,194) (115,015) Retained earnings 112,087 114,610 Accumulated other comprehensive loss (7,218) (8,069) Total Pfizer Inc.
Condensed consolidated balance sheets—Debt and liquidity · Filed 04/08/2026
40% Total Revenue 40% Adjusted Net Income 20% Cash Flow from Operations Up to +/- 25 Percentage Points based on performance against Pipeline goals Adjust +/- depending on the Committee’s evaluation of other qualitative factors à à à Plan Funding Capped at 200% (1)Includes budgeted foreign exchange rates, business development activity (e.g., acquisitions or divestitures), planned increases in the pricing of our medicines, planned capital allocation activities, such as share repurchases and dividend payments (share repurchases in excess of budgeted amounts are removed from the calculation of the financial results for GPP purposes), and/or other operational factors (e.g., losses of exclusivity), as well as certain other qualitative criteria.
Executive Compensation—2025 annual incentive funding metrics and adjustments · Filed 12/03/2026
Any expenses for acquired IPR&D are included in our non-GAAP Adjusted results but we exclude certain of these expenses for our financial results for annual incentive compensation purposes.
MD&A—Adjusted results—Acquired IPR&D exclusions for incentive compensation · Filed 04/08/2026
2025 Advisory Vote on Executive Compensation Our executive compensation program received majority shareholder support and was approved, on an advisory basis, by 54.7% of the votes cast at the 2025 Annual Meeting, which was considerably lower than the support received in previous years.
Executive Compensation—2025 advisory vote outcome · Filed 12/03/2026
We have not seen a significant disruption of our supply chain in the first six months of 2026 and through the date of filing of this Form 10-Q, and all of our manufacturing sites globally have continued to operate at or near normal levels.
MD&A—Product supply—Actual manufacturing continuity · Filed 04/08/2026
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Independent auditor opinion—Effective internal control over financial reporting · Filed 26/02/2026
ROLE OF THE LEAD INDEPENDENT DIRECTOR The role of Lead Independent Director is governed by a Board-approved charter and entails a specific mandate, substantial authority, and clearly articulated responsibilities, including, but not limited to: presiding at all meetings of the Board at which the Chairman and CEO is not present, including executive sessions of the independent Directors; calling meetings of independent Directors; leading the annual evaluation of the Chairman and CEO; and functioning as a liaison between the Chairman and CEO and the independent Directors.
Governance—Lead Independent Director authority · Filed 12/03/2026
2026 Proxy Statement Pfizer 21 Governance BOARD COMMITTEES The Audit Committee Chair: Suzanne Nora Johnson The Committee’s primary responsibilities include: •the appointment, compensation, retention and oversight of our independent registered public accounting firm (the firm); •reviewing and discussing with the firm, Internal Audit and management, the adequacy and effectiveness of internal control over financial reporting; •reviewing and consulting with management, Internal Audit and the firm on matters related to the annual audit, the published financial statements, earnings releases and the accounting principles applied; •reviewing reports from management relating to the status of compliance with laws, regulations and internal procedures and policies; •reviewing and approving, based on discussion with the Chief Financial Officer, the appointment, replacement or dismissal of the Chief Internal Auditor and reviewing, with the Chief Financial Officer, the performance of the Chief Internal Auditor; and •overseeing the company’s ERM program, and reviewing and discussing with management the company’s policies with respect to risk assessment and risk management, including with respect to information security and technology risks (including cybersecurity).
Governance—Audit Committee responsibilities · Filed 12/03/2026
We believe our acquisition of Seagen will strengthen our oncology capabilities by allowing us to combine Seagen’s ADC technology with the resources and scale of the Pfizer enterprise and to advance more potential breakthroughs to patients with cancer.
Note 2—Management expectation for Seagen acquisition benefits · Filed 26/02/2026
Pfizer previously announced that it remains on track to deliver anticipated net cost savings of approximately $5.7 billion by the end of 2026 and, with the additional anticipated savings, Pfizer now expects total net cost savings of approximately $6.7 billion from the Realigning our Cost Base Program through 2029.
Subsequent restructuring disclosure—Anticipated cost savings · Filed 04/08/2026
and European-based pharmaceutical companies, which are: AbbVie Inc., Amgen Inc., AstraZeneca PLC, Bristol-Myers Squibb Company, Eli Lilly and Company, GSK plc, Johnson & Johnson, Merck & Co., Inc., Novartis AG, Novo Nordisk, Roche Holding AG and Sanofi, the S&P 500 Index and the NYSE Arca Pharmaceutical Index (DRG index).
Share performance graph—Pharmaceutical peer group · Filed 26/02/2026
See Notes 3 and 4. The following provides Biopharma reportable segment information regularly provided to the CODM: Three Months Ended Six Months Ended (MILLIONS) June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 Biopharma reportable segment: Biopharma total revenues $ 14,661 $ 14,305 $ 28,822 $ 27,746 Less: Cost of sales 3,188 3,075 6,222 5,389 Selling, informational and administrative expenses 2,344 2,343 4,475 4,529 Research and development expenses 2,376 2,109 4,513 4,050 Acquired in-process research and development expenses 16 2 153 11 Other (income)/deductions––net (151) (115) (267) (193) Biopharma earnings $ 6,887 $ 6,891 $ 13,725 $ 13,960 B.
Note 13—Biopharma segment revenues, expenses and earnings · Filed 04/08/2026
In accordance with this philosophy, our executive compensation program delivers a significant portion of the total compensation opportunity for each of our executives (including the NEOs) as long-term compensation directly tied to Pfizer’s total shareholder return and other performance factors that measure our progress against our strategic goals and operating plans, as well as individual performance.
Executive Compensation—Long-term compensation tied to shareholder return and performance · Filed 12/03/2026
