Document: SEC Filing

Company: Pfizer Inc.
Ticker: PFE
CIK: 78003
Form Type: 10-Q
Filing Date: 2026-05-05
Accession Number: 0000078003-26-000054
Source: 10-Q_2026-05-05_0000078003-26-000054.txt

---

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
10-Q

☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
March 29, 2026

OR
☐

TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
COMMISSION FILE NUMBER

1-3619
----
PFIZER INC
.

(Exact name of registrant as specified in its charter)
Delaware 13-5315170
(State of Incorporation) (I.R.S. Employer Identification No.)

66 Hudson Boulevard East
,
New York
,
New York
  
10001-2192

(Address of principal executive offices)  (zip code)
(
212
)
733-2323

(Registrant’s telephone number including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.05 par value PFE New York Stock Exchange
1.000% Notes due 2027 PFE/27 New York Stock Exchange
2.875% Notes due 2029 PFE/29 New York Stock Exchange
3.250% Notes due 2032 PFE/32 New York Stock Exchange
3.875% Notes due 2037 PFE/37A New York Stock Exchange
4.250% Notes due 2045 PFE/45 New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large Accelerated filer

x
              Accelerated filer
☐
                Non-accelerated filer  
☐
          Smaller reporting company  
☐
    Emerging growth company  
☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No x

At April 29, 2026,

5,699,444,169
shares of the issuer’s voting common stock were outstanding.
TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION Page
Item 1.
Financial Statements
Condensed Consolidated Statements of Operations 5
Condensed Consolidated Statements of Comprehensive Income 6
Condensed Consolidated Balance Sheets 7
Condensed Consolidated Statements of Equity 8
Condensed Consolidated Statements of Cash Flows 9
Notes to Condensed Consolidated Financial Statements 10
Item 2.
Management ’ s Discussion and Analysis of Financial Condition and Results of Operations 32
Item 3.
Quantitative and Qualitative Disclosures About Market Risk 46
Item 4.
Controls and Procedures 46
PART II.  OTHER INFORMATION
Item 1.
Legal Proceedings 46
Item 1A.
Risk Factors 46
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds 46
Item 3.
Defaults Upon Senior Securities N/A
Item 4.
Mine Safety Disclosures N/A
Item 5.
Other Information 46
Item 6 .
Exhibits 47
Signature 47
N/A = Not Applicable

2
DEFINED TERMS

Unless the context requires otherwise, references to “Pfizer,” “the Company,” “we,” “us” or “our” in this Form 10-Q (defined below) refer to Pfizer Inc. and its subsidiaries. Pfizer’s fiscal quarter-end for subsidiaries operating outside the U.S. is as of and for the three months ended February 22, 2026 and February 23, 2025, and for U.S. subsidiaries is as of and for the three months ended March 29, 2026 and March 30, 2025. References to “Notes” in this Form 10-Q are to the Notes to the Condensed or Consolidated Financial Statements in this Form 10-Q or in our 2025 Form 10-K. We also have used several other terms in this Form 10-Q, most of which are explained or defined below:
* Indicates calculation not meaningful or results are greater than 100%
2025 Form 10-K Annual Report on Form 10-K for the fiscal year ended December 31, 2025
340B Program 340B Drug Pricing Program
3SBio 3SBio, Inc. and its subsidiaries Shenyang Sunshine Pharmaceutical Co., Ltd. and 3S Guojian Pharmaceutical (Shanghai) Co., Ltd.
AI artificial intelligence
ALK anaplastic lymphoma kinase
Alliance revenues Revenues from alliance agreements under which we co-promote products discovered or developed by other companies or us
Astellas Astellas Pharma Inc., Astellas US LLC and Astellas Pharma US, Inc.
ATTR-CM transthyretin amyloid cardiomyopathy
BioNTech BioNTech SE
Biopharma Global Biopharmaceuticals Business
BMS Bristol-Myers Squibb Company
BOD Board of Directors
CODM Chief Operating Decision Maker
Comirnaty Unless otherwise noted, refers to, as applicable, the current formulation of Comirnaty (COVID-19 Vaccine, mRNA) 2025-2026 Formula as well as all prior authorized or approved formulations of the vaccine, which was first authorized in the U.S. during December 2020 pursuant to an EUA
COVID-19 novel coronavirus disease of 2019
Developed Markets Includes, but is not limited to, the following markets: Western Europe, Japan, Central Europe, Canada, Nordic countries, Australia, certain Eastern European countries, South Korea and New Zealand
EMA European Medicines Agency
Emerging Markets Includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Eastern Europe (excluding the Balkans and certain other countries), Africa, Turkey and the Middle East
EPS earnings per share
EU European Union
EUA emergency use authorization
Exchange Act Securities Exchange Act of 1934, as amended
FASB Financial Accounting Standards Board
FDA U.S. Food and Drug Administration
Form 10-Q This Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2026
GAAP U.S. Generally Accepted Accounting Principles
GILTI (NCTI) Global Intangible Low-Taxed Income (renamed Net Controlled Foreign Corporation (CFC) Tested Income (NCTI) for taxable years starting after December 31, 2025)
GSK GSK plc
Haleon Haleon plc
Hospira Hospira, Inc.
HRR homologous recombination repair
IPR&D in-process research and development
IRA Inflation Reduction Act of 2022
IRS U.S. Internal Revenue Service
JV joint venture
King King Pharmaceuticals LLC (formerly King Pharmaceuticals, Inc.)
mCC metastatic cervical cancer
mCRC metastatic colorectal cancer
mCRPC metastatic castration-resistant prostate cancer
mCSPC metastatic castration-sensitive prostate cancer
MD&A Management’s Discussion and Analysis of Financial Condition and Results of Operations
MDL Multi-District Litigation
Medicare Part D a prescription drug coverage program for people with Medicare
Metsera Metsera, Inc.
Moody’s Moody’s Ratings (formerly Moody’s Investors Service)
mRNA messenger ribonucleic acid
nmCRPC non-metastatic castration-resistant prostate cancer
nmCSPC non-metastatic castration-sensitive prostate cancer

3
NSCLC non-small cell lung cancer
OBBBA One Big Beautiful Bill Act
ODT oral disintegrating tablet
OTC over-the-counter
Paxlovid (a) an oral COVID-19 treatment (nirmatrelvir tablets and ritonavir tablets)
PC1 Pfizer CentreOne
Pharmacia Pharmacia LLC (formerly Pharmacia Corporation)
Prevnar family Includes Prevnar 20/Prevenar 20 (pediatric and adult) and Prevnar 13/Prevenar 13 (pediatric and adult)
PsA psoriatic arthritis
RA rheumatoid arthritis
R&D research and development
RSV respiratory syncytial virus
S&P S&P Global (formerly Standard & Poor’s)
Sciwind Biosciences Hangzhou Sciwind Biosciences Co., Ltd.
Seagen Seagen Inc. and its subsidiaries
SEC U.S. Securities and Exchange Commission
SI&A Selling, informational and administrative expenses
Takeda Takeda Pharmaceutical Company Limited
Tax Cuts and Jobs Act or TCJA Legislation commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017
UC ulcerative colitis
U.K. United Kingdom
U.S. United States
ViiV ViiV Healthcare Limited
Vyndaqel family Includes Vyndaqel, Vyndamax and Vynmac
Wyeth Wyeth LLC (formerly Wyeth)
YaoPharma YaoPharma Co., Ltd.

(a)
Paxlovid has not been approved, but has been authorized for emergency use by the FDA under an EUA for the treatment of mild-to-moderate COVID-19 in pediatric patients (12 years of age and older weighing at least 40 kg) who are at high risk for progression to severe COVID-19, including hospitalization or death. The emergency use of Paxlovid is only authorized for the duration of the declaration that circumstances exist justifying the authorization of emergency use of the medical product during the COVID-19 pandemic under Section 564(b)(1) of the U.S. Federal Food, Drug and Cosmetics Act, 21 U.S.C. § 360bbb-3(b)(1) unless the declaration is terminated or authorization revoked sooner. Please see the EUA Fact Sheet at
www.covid19oralrx.com.
This Form 10-Q includes discussion of certain clinical studies relating to various in-line products and/or product candidates. These studies typically are part of a larger body of clinical data relating to such products or product candidates, and the discussion herein should be considered in the context of the larger body of data. In addition, clinical trial data are subject to differing interpretations, and, even when we view data as sufficient to support the safety and/or efficacy of a product candidate or a new indication for an in-line product, regulatory authorities may not share our views and may require additional data or may deny approval altogether.
Some amounts in this Form 10-Q may not add due to rounding. All percentages have been calculated using unrounded amounts. All trademarks mentioned are the property of their owners.
The information contained on our website, our Facebook, Instagram, YouTube and LinkedIn pages or our X accounts, or any third-party website, is not incorporated by reference into this Form 10-Q.
Certain of the products and product candidates discussed in this Form 10-Q are being co-researched, co-developed and/or co-promoted in collaboration with other companies for which Pfizer’s rights vary by market or are the subject of agreements pursuant to which Pfizer has commercialization rights in certain markets.
4
PART I.  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
(MILLIONS, EXCEPT PER SHARE DATA) March 29, 2026 March 30, 2025
Revenues:
Product revenues $ 11,715 $ 11,294
Alliance revenues 2,339 2,113
Royalty revenues 396 308
Total revenues 14,451 13,715
Costs and expenses:
Cost of sales (a) 3,548 2,845
Selling, informational and administrative expenses (a) 2,961 3,031
Research and development expenses (a) 2,490 2,203
Acquired in-process research and development expenses 137 9
Amortization of intangible assets 1,183 1,211
Restructuring charges and certain acquisition-related costs 100 678
Other (income)/deductions––net 861 953
Income from continuing operations before provision/(benefit) for taxes on income 3,170 2,785
Provision/(benefit) for taxes on income 461 ( 189 )
Income from continuing operations 2,709 2,973
Discontinued operations––net of tax ( 13 ) —
Net income before allocation to noncontrolling interests 2,696 2,973
Less: Net income attributable to noncontrolling interests 8 6
Net income attributable to Pfizer Inc. common shareholders $ 2,687 $ 2,967
Earnings per common share––basic :
Income from continuing operations attributable to Pfizer Inc. common shareholders $ 0.48 $ 0.52
Discontinued operations––net of tax — —
Net income attributable to Pfizer Inc. common shareholders $ 0.47 $ 0.52
Earnings per common share––diluted :
Income from continuing operations attributable to Pfizer Inc. common shareholders $ 0.47 $ 0.52
Discontinued operations––net of tax — —
Net income attributable to Pfizer Inc. common shareholders $ 0.47 $ 0.52
Weighted-average shares––basic 5,691 5,675
Weighted-average shares––diluted 5,731 5,710

(a)

Exclusive of amortization of intangible assets.
See Accompanying Notes.
5
PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Net income before allocation to noncontrolling interests $ 2,696 $ 2,973
Foreign currency translation adjustments, net 923 ( 557 )
Unrealized holding gains/(losses) on derivative financial instruments, net ( 36 ) ( 123 )
Reclassification adjustments for (gains)/losses included in net income (a) 9 ( 313 )
( 27 ) ( 436 )
Unrealized holding gains/(losses) on available-for-sale securities, net 38 ( 31 )
Reclassification adjustments for (gains)/losses included in net income (b) 21 155
60 124
Reclassification adjustments related to amortization of prior service costs and other, net ( 7 ) ( 30 )
Reclassification adjustments related to curtailments of prior service costs and other, net ( 5 ) ( 33 )
( 12 ) ( 64 )
Other comprehensive income/(loss), before tax 944 ( 932 )
Tax provision/(benefit) on other comprehensive income/(loss) 81 ( 191 )
Other comprehensive income/(loss) before allocation to noncontrolling interests $ 863 $ ( 741 )
Comprehensive income/(loss) before allocation to noncontrolling interests $ 3,559 $ 2,232
Less: Comprehensive income/(loss) attributable to noncontrolling interests 5 4
Comprehensive income/(loss) attributable to Pfizer Inc. $ 3,554 $ 2,229

(a)
Reclassified into
Other
(
income
)
/deductions—net
and
Cost of sales.
See
Note 7E
.
(b)
Reclassified into
Other
(
income
)
/deductions—net.
See Accompanying Notes.
6
PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(MILLIONS) March 29, 2026 December 31, 2025
(Unaudited)
Assets
Cash and cash equivalents $ 1,703 $ 1,142
Short-term investments 11,372 12,454
Trade accounts receivable, net of allowance for doubtful accounts: 2026—$ 425 ; 2025—$ 427 12,585 11,874
Inventories 10,667 10,654
Current tax assets 3,588 3,967
Other current assets 2,908 2,808
Total current assets 42,822 42,898
Long-term investments 1,626 1,621
Property, plant and equipment, net of accumulated depreciation: 2026—$ 17,803 ; 2025—$ 17,386 19,402 19,317
Identifiable intangible assets, net 52,559 53,731
Goodwill 71,409 71,264
Noncurrent deferred tax assets and other noncurrent tax assets 9,965 9,699
Other noncurrent assets 9,834 9,631
Total assets $ 207,618 $ 208,160
Liabilities and Equity
Short-term borrowings, including current portion of long-term debt: 2026—$ 3,861 ; 2025—$ 2,997 $ 3,890 $ 3,154
Trade accounts payable 4,506 5,240
Dividends payable — 2,445
Income taxes payable 3,130 3,103
Accrued compensation and related items 2,715 3,610
Other current liabilities 20,108 19,432
Total current liabilities 34,348 36,984
Long-term debt 60,565 61,641
Pension and postretirement benefit obligations 1,984 2,041
Noncurrent deferred tax liabilities 2,412 2,401
Other taxes payable 3,705 3,591
Other noncurrent liabilities 14,200 14,725
Total liabilities 117,214 121,385
Commitments and Contingencies
Common stock 482 481
Additional paid-in capital 94,773 94,469
Treasury stock ( 115,190 ) ( 115,015 )
Retained earnings 117,238 114,610
Accumulated other comprehensive loss ( 7,203 ) ( 8,069 )
Total Pfizer Inc. shareholders’ equity 90,101 86,476
Equity attributable to noncontrolling interests 303 299
Total equity 90,404 86,775
Total liabilities and equity $ 207,618 $ 208,160

See Accompanying Notes.
7
PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
PFIZER INC. SHAREHOLDERS
Common Stock Treasury Stock
(MILLIONS, EXCEPT PER SHARE DATA) Shares Par Value Add’l Paid-In Capital Shares Cost Retained Earnings Accum. Other Comp. Loss Share- holders’ Equity Non-controlling interests Total Equity
Balance, January 1, 2026 9,621 $ 481 $ 94,469 ( 3,935 ) $ ( 115,015 ) $ 114,610 $ ( 8,069 ) $ 86,476 $ 299 $ 86,775
Net income 2,687 2,687 8 2,696
Other comprehensive income/(loss), net of tax 867 867 ( 4 ) 863
Cash dividends declared, per share: $ —
Common stock — — —
Share-based payment transactions 20 1 304 ( 7 ) ( 176 ) ( 60 ) 70 70
Other — — — 1 — 1 — 1
Balance, March 29, 2026 9,641 $ 482 $ 94,773 ( 3,942 ) $ ( 115,190 ) $ 117,238 $ ( 7,203 ) $ 90,101 $ 303 $ 90,404
PFIZER INC. SHAREHOLDERS
Common Stock Treasury Stock
(MILLIONS, EXCEPT PER SHARE DATA) Shares Par Value Add’l Paid-In Capital Shares Cost Retained Earnings Accum. Other Comp. Loss Share- holders’ Equity Non-controlling interests Total Equity
Balance, January 1, 2025 9,593 $ 480 $ 93,603 ( 3,926 ) $ ( 114,763 ) $ 116,725 $ ( 7,842 ) $ 88,203 $ 294 $ 88,497
Net income 2,967 2,967 6 2,973
Other comprehensive income/(loss), net of tax ( 738 ) ( 738 ) ( 3 ) ( 741 )
Cash dividends declared, per share: $ —
Common stock — — —
Share-based payment transactions 27 1 252 ( 9 ) ( 245 ) ( 103 ) ( 94 ) ( 94 )
Other — — — 1 1 2 2
Balance, March 30, 2025 9,620 $ 481 $ 93,856 ( 3,935 ) $ ( 115,008 ) $ 119,590 $ ( 8,581 ) $ 90,338 $ 299 $ 90,637

See Accompanying Notes.
8
PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Operating Activities
Net income before allocation to noncontrolling interests $ 2,696 $ 2,973
Discontinued operations—net of tax ( 13 ) —
Net income from continuing operations before allocation to noncontrolling interests 2,709 2,973
Adjustments to reconcile net income from continuing operations before allocation to noncontrolling interests to net cash provided by/(used in) operating activities:
Depreciation and amortization 1,613 1,618
Asset write-offs and impairments 32 344
Deferred taxes ( 12 ) ( 663 )
Share-based compensation expense 272 170
Benefit plan contributions in excess of expense/income ( 173 ) ( 229 )
Other adjustments, net ( 93 ) 40
Other changes in assets and liabilities, net of acquisitions and divestitures ( 1,732 ) ( 1,919 )
Net cash provided by/(used in) operating activities 2,615 2,335
Investing Activities
Purchases of property, plant and equipment ( 436 ) ( 564 )
Purchases of short-term investments ( 2,569 ) ( 2,823 )
Proceeds from redemptions/sales of short-term investments 4,576 3,955
Net (purchases of)/proceeds from redemptions/sales of short-term investments with original maturities of three months or less ( 792 ) ( 3,852 )
Purchases of long-term investments ( 104 ) ( 134 )
Proceeds from redemptions/sales of long-term investments 88 82
Proceeds from sales of investment in Haleon — 6,311
Other investing activities, net 22 300
Net cash provided by/(used in) investing activities 785 3,274
Financing Activities
Payments on short-term borrowings — ( 2,048 )
Net (payments on)/proceeds from short-term borrowings with original maturities of three months or less ( 127 ) ( 386 )
Cash dividends paid ( 2,445 ) ( 2,437 )
Other financing activities, net ( 284 ) ( 356 )
Net cash provided by/(used in) financing activities ( 2,856 ) ( 5,227 )
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents 19 ( 7 )
Net increase/(decrease) in cash and cash equivalents and restricted cash and cash equivalents 563 375
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period 1,197 1,107
Cash and cash equivalents and restricted cash and cash equivalents, at end of period $ 1,760 $ 1,481
Supplemental Cash Flow Information
Cash paid during the period for:
Income taxes $ 72 $ 152
Interest paid 293 353
Interest rate hedges 62 74

See Accompanying Notes.
9
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 1.
Basis of Presentation and Significant Accounting Policies
A.
Basis of Presentation
We prepared these condensed consolidated financial statements in conformity with U.S. GAAP, consistent in all material respects with those applied in our 2025 Form 10-K. As permitted under the SEC requirements for interim reporting, certain footnotes or other financial information have been condensed or omitted.
These financial statements include all normal and recurring adjustments that are considered necessary for the fair statement of results for the interim periods presented. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our 2025 Form 10-K
.
Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be representative of those for the full year.
Pfizer’s fiscal quarter-end for subsidiaries operating outside the U.S. is as of and for the three months ended February 22, 2026 and February 23, 2025, and for U.S. subsidiaries is as of and for the three months ended March 29, 2026 and March 30, 2025.
We manage our commercial operations through
two
operating segments, each led by a single manager: Biopharma and PC1. Biopharma is the only reportable segment. See
Note 13A
.
B. Revenues and Trade Accounts Receivable
Deductions from Revenues–– Our accruals for Medicare, Medicaid and related state program and performance-based contract rebates, chargebacks, sales allowances and sales returns and cash discounts are as follows:
(MILLIONS) March 29, 2026 December 31, 2025
Reserve against Trade accounts receivable, net of allowance for doubtful accounts $ 1,699 $ 1,803
Other current liabilities :
Accrued rebates 8,846 7,909
Other accruals 718 750
Other noncurrent liabilities 287 1,204
Total accrued rebates and other sales-related accruals $ 11,550 $ 11,666

Trade Accounts Receivable––
Trade accounts receivable are stated at their net realizable value. The allowance for credit losses reflects our best estimate of expected credit losses of the receivables portfolio determined on the basis of historical experience, current information, and forecasts of future economic conditions. In developing the estimate for expected credit losses, trade accounts receivables are segmented into pools of assets depending on market, delinquency status, and customer type (high risk versus low risk and government versus non-government), and reserve percentages are established for each pool of trade accounts receivables.
In determining the reserve percentages for each pool of trade accounts receivables, we considered our historical experience with certain customers and customer types, regulatory and legal environments, country and political risk, and other relevant current and future forecasted macroeconomic factors. When management becomes aware of certain customer-specific factors that impact credit risk, specific allowances for these known troubled accounts are recorded.
During the three months ended March 29, 2026 and March 30, 2025, additions to the allowance for credit losses, write-offs and recoveries of customer receivables were not material to our condensed consolidated financial statements.
For additional information on our trade accounts receivable, see
Note 1G
in our 2025 Form 10-K.
Note 2.
Acquisition, In-Licensing Arrangement and Sale of Investment
A. Acquisition
Metsera––
On November 13, 2025, we acquired Metsera, a clinical-stage biopharmaceutical company accelerating the next generation of medicines for obesity and cardiometabolic diseases, for $
65.60
per share in cash plus a contingent value right (CVR) of up to $
20.65
per share in potential additional payments (up to $
2.3
billion) tied to the achievement of
three
specified milestones: $
4.60
per share following the Phase 3 clinical trial start of Metsera’s injectable GLP-1 receptor antagonist MET-097i+amylin analog MET-233i combination, $
6.40
per share following FDA approval of Metsera’s monthly MET-097i monotherapy and $
9.65
per share following FDA approval of Metsera’s monthly MET-097i+MET-233i combination. The total fair value of the consideration transferred was $
8.0
billion ($
7.8
billion net of cash acquired), which includes the fair value of $
632
million for the noncash CVRs and $
475
million for employee stock awards related to pre-acquisition service.
10
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

In connection with this business combination, we provisionally recorded: (i) $
8.0
billion of
identifiable intangible assets, net,
consisting of IPR&D, (ii) $
2.0
billion of Goodwill, (iii) $
1.6
billion of net deferred tax liabilities, and (iv) $
672
million of contingent consideration liability assumed from Metsera. Goodwill, which resulted primarily from the recognition of deferred tax liabilities, is related to our Biopharma segment and is not deductible for tax purposes. The contingent consideration liability was recorded at fair value and relates to Metsera’s 2023 acquisition of Zihipp Ltd (Zihipp). As a part of that transaction, the former Zihipp shareholders are entitled to future potential development, regulatory and commercialization milestone payments, along with low-single digit royalties on net product sales on the MET-097i and MET-233i product candidates. The allocation of the consideration transferred to the assets acquired and liabilities assumed has not yet been finalized.
B. In-Licensing Arrangement
In-Licensing Arrangement with Sciwind Biosciences
––In February 2026, Pfizer and Sciwind Biosciences announced a strategic commercialization collaboration in which Pfizer obtained exclusive commercialization rights for Sciwind Biosciences’ glucagon-like peptide 1 (GLP-1) receptor agonist ecnoglutide in Mainland China. Sciwind Biosciences remains the Marketing Authorization Holder and is responsible for R&D, registration, manufacturing and supply of the product. Sciwind Biosciences is eligible to receive an aggregate of up to $
495
million in upfront, regulatory and sales milestone payments.
C. Sale of Investment
ViiV
––On March 31, 2026, which fell in our second fiscal quarter of 2026, Pfizer completed the exit of its
11.7
% investment in ViiV (carrying value of
zero
) and received $
1.875
billion in cash proceeds. See
Note 2C
in our 2025 Form 10-K.
Note 3.
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives
A. Realigning Our Cost Base Program
In the fourth quarter of 2023, we announced that we launched a multi-year, enterprise-wide cost realignment program that aims to realign our costs with our longer-term revenue expectations. In the second quarter of 2025, we identified additional productivity opportunities to further reduce costs primarily in SI&A, driven in large part by enhanced digital enablement, including automation and AI, and simplification of business processes.
We expect costs associated with these components of the program to be incurred through 2027 and to total approximately $
4.7
 billion, representing primarily cash expenditures for severance, implementation, exit, and digital enablement costs, as well as non-cash asset write downs of which $
3.1
 billion is associated with our Biopharma segment.
Additionally, in connection with our efforts to simplify the structure and sharpen the focus of our R&D organization, in the first quarter of 2025, we expanded this program after having identified additional opportunities to drive improvements in productivity and operational efficiencies through enhanced digital enablement, including automation and AI, and simplification of business processes. We expect costs to implement these initiatives to be incurred through 2026 and to total approximately $
600
 million, primarily representing cash expenditures for severance, digital enablement and implementation, all of which is associated with our Biopharma segment. The majority of these costs were recorded in 2025, with cash outlays expected primarily through 2026.
We expect costs associated with all the components of this program to total approximately $
5.3
 billion of which $
3.7
 billion is associated with the Biopharma segment.
From the start of this program through March 29, 2026, we incurred total costs of $
4.3
 billion, of which $
3.3
billion is associated with our Biopharma segment (including $
2.9
billion of restructuring charges).
B. Manufacturing Optimization Program
In the second quarter of 2024, we announced that we launched a multi-year, multi-phased program to reduce our costs of goods sold, which includes operational efficiencies, network structure changes, and product portfolio enhancements. The first phase of this program is primarily focused on operational efficiencies, and we expect costs for this first phase to total approximately $
1.4
 billion, primarily representing cash expenditures for severance and implementation costs, all of which is associated with our Biopharma segment. From the start of this program through March 29, 2026, we incurred costs of $
1.1
billion (including $
853
 million of restructuring charges). These costs were recorded primarily through 2025, with cash outlays expected primarily through 2026.
11
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

C. Key Activities
The following summarizes costs and credits for acquisitions and cost-reduction/productivity initiatives:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Restructuring charges/(credits):
Employee terminations $ 15 $ 384
Asset impairments 28 173
Exit costs 6 64
Restructuring charges/(credits) (a) 49 621
Integration costs and other (b) 51 57
Restructuring charges and certain acquisition-related costs 100 678
Net periodic benefit costs/(credits) recorded in Other ( income ) /deductions––net 3 ( 59 )
Additional depreciation––asset restructuring recorded in Cost of sales (c) 3 4
Implementation costs recorded in our condensed consolidated statements of operations as follows (d) :
Cost of sales 15 20
Selling, informational and administrative expenses 36 6
Research and development expenses 38 24
Total implementation costs 89 50
Total costs associated with acquisitions and cost-reduction/productivity initiatives $ 195 $ 673

(a)
Primarily represents cost-reduction initiatives. Amounts associated with our Biopharma segment: (i) charges of $
31
 million for the three months ended March 29, 2026 (including charges of $
47
 million for our Realigning our Cost Base Program and credits of $
22
million for our Manufacturing Optimization Program) and (ii) charges of $
617
million for the three months ended March 30, 2025 (including charges of $
587
 million for our Realigning our Cost Base Program and credits of $
4
million for our Manufacturing Optimization Program).
(b)
Represents external, incremental costs directly related to integrating acquired businesses, such as expenditures for consulting and the integration of systems and processes, and certain other qualifying costs.
(c)
Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions.
(d)
Represents incremental costs directly related to implementing our non-acquisition-related cost-reduction/productivity initiatives.
The following summarizes the components and changes in restructuring accruals:
(MILLIONS) Employee Termination Costs Asset Impairment Charges Exit Costs Accrual
Balance, December 31, 2025 (a) $ 1,783 $ — $ 127 $ 1,910
Provision 15 28 6 49
Utilization and other (b) ( 330 ) ( 28 ) ( 12 ) ( 371 )
Balance, March 29, 2026 (c) $ 1,467 $ — $ 121 $ 1,588

(a)
Included in
Other current liabilities
($
1.4
billion) and
Other noncurrent liabilities
($
466
million).
(b)
Other activity includes adjustments for foreign currency translation that are not material to our condensed consolidated financial statements.
(c)
Included in
Other current liabilities
($
1.2
billion) and
Other noncurrent liabilities
($
431
million).
12
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 4.
Other (Income)/Deductions—Net
Components of Other ( income ) /deductions––net include:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Interest income $ ( 115 ) $ ( 143 )
Interest expense 668 654
Net interest expense 554 511
Net (gains)/losses recognized during the period on equity securities 9 370
Net periodic benefit costs/(credits) other than service costs ( 72 ) ( 158 )
Certain legal matters, net (a) 191 142
Certain asset impairments (b) — 224
Changes in fair value of contingent consideration liabilities (c) 295 8
Other, net ( 116 ) ( 144 )
Other ( income ) /deductions––net $ 861 $ 953

(a)
The amount for the first quarter of 2026 primarily includes certain product liability expenses related to products discontinued and/or divested by Pfizer. The amount for the first quarter of 2025 included certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer.
(b)
The amount for the first quarter of 2025 primarily represented an intangible asset impairment charge associated with our Biopharma segment of $
210
million for a Phase 2 indefinite-lived out-licensed asset that was discontinued by our out-licensing partner.
(c)
See
Notes 1D
and
16D
in our 2025 Form 10-K and
N
ote
7A
.
Note 5.
Tax Matters
A. Taxes on Income from Continuing Operations
Our effective tax rate for continuing operations was
14.6
% for the first quarter of 2026, compared to (
6.8
)% for the first quarter of 2025. The increase in the effective tax rate for the first quarter of 2026, compared to the first quarter of 2025, was primarily due to an unfavorable change in the jurisdictional mix of earnings, and non-recurrence of favorable global income tax resolutions.
We elected, with the filing of our 2018 U.S. Federal Consolidated Income Tax Return, to pay our initial estimated $
15
billion repatriation tax liability on accumulated post-1986 foreign earnings (Transition Tax liability) over eight years through 2026. The eighth and final annual installment was paid by its April 15, 2026 due date and was reported in current
Income taxes payable
as of March 29, 2026. Our obligations may vary due to the availability of attributes such as foreign tax and other credit carryforwards or carrybacks.
See
Note 5A
in our 2025 Form 10-K for information on our income taxes paid (net of refunds received).
B. Tax Contingencies
We are subject to income tax in many jurisdictions, and a certain degree of estimation is required in recording the assets and liabilities related to income taxes. All of our tax positions are subject to audit by the local taxing authorities in each tax jurisdiction. These tax audits can involve complex issues, interpretations and judgments and the resolution of matters may span multiple years, particularly if subject to negotiation or litigation.
The U.S. is one of our major tax jurisdictions, and we are regularly audited by the IRS. Tax years 2019-2022 are under audit. Tax years 2023-2026 are open but not under audit. All other tax years are closed. In addition to the open audit years in the U.S., we have open audit years and certain related audits, appeals and investigations in certain major international tax jurisdictions dating back to 2016.
See
Note 5D
in our 2025 Form 10-K.
13
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

C. Tax Provision/
(
Benefit
)
on Other Comprehensive Income/
(
Loss
)
Components of Tax provision/ ( benefit ) on other comprehensive income/ ( loss ) include:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Foreign currency translation adjustments, net (a) $ 76 $ ( 102 )
Unrealized holding gains/(losses) on derivative financial instruments, net ( 5 ) ( 34 )
Reclassification adjustments for (gains)/losses included in net income 6 ( 55 )
— ( 89 )
Unrealized holding gains/(losses) on available-for-sale securities, net 5 ( 4 )
Reclassification adjustments for (gains)/losses included in net income 3 19
7 15
Reclassification adjustments related to amortization of prior service costs and other, net ( 2 ) ( 7 )
Reclassification adjustments related to curtailments of prior service costs and other, net ( 1 ) ( 9 )
( 3 ) ( 16 )
Tax provision/ ( benefit ) on other comprehensive income/ ( loss ) $ 81 $ ( 191 )

(a)
Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that are expected to be held indefinitely.
Note 6.
Accumulated Other Comprehensive Loss, Excluding Noncontrolling Interests
The following summarizes the changes, net of tax, in Accumulated other comprehensive loss :
Net Unrealized Gains/(Losses) Benefit Plans
(MILLIONS) Foreign Currency Translation Adjustments (a) Derivative Financial Instruments Available-For-Sale Securities Prior Service (Costs)/Credits and Other Accumulated Other Comprehensive Income/(Loss)
Balance, January 1, 2026 $ ( 7,796 ) $ ( 321 ) $ ( 28 ) $ 75 $ ( 8,069 )
Other comprehensive income/(loss) (b) 851 ( 27 ) 52 ( 9 ) 867
Balance, March 29, 2026 $ ( 6,944 ) $ ( 348 ) $ 24 $ 66 $ ( 7,203 )

(a)
Amounts do not include foreign currency translation adjustments attributable to noncontrolling interests.
(b)
Foreign currency translation adjustments include net gains/(losses) related to the impact of our net investment hedging program.
14
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 7.
Financial Instruments
A. Fair Value Measurements
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy:
March 29, 2026 December 31, 2025
(MILLIONS) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Financial assets:
Short-term investments
Equity securities with readily determinable fair value (a) $ 1,865 $ — $ 1,865 $ — $ 2,596 $ — $ 2,596 $ —
Available-for-sale debt securities:
Government and agency—non-U.S. 3,888 — 3,888 — 4,859 — 4,859 —
Government and agency—U.S. 2,935 — 2,935 — 3,030 — 3,030 —
Corporate and other 1,366 — 1,366 — 1,294 — 1,294 —
8,189 — 8,189 — 9,183 — 9,183 —
Total short-term investments 10,054 — 10,054 — 11,779 — 11,779 —
Other current assets
Derivative assets:
Interest rate contracts 6 — 6 — — — — —
Foreign exchange contracts 498 — 498 — 416 — 416 —
Total other current assets 504 — 504 — 416 — 416 —
Long-term investments
Equity securities with readily determinable fair values (b) 653 653 — — 642 642 — —
Available-for-sale debt securities:
Government and agency—non-U.S. — — — — 1 — 1 —
Corporate and other — — — — — — — —
— — — — 1 — 1 —
Total long-term investments 653 653 — — 642 642 1 —
Other noncurrent assets
Derivative assets:
Interest rate contracts 27 — 27 — 52 — 52 —
Foreign exchange contracts 128 — 128 — 64 — 64 —
Total derivative assets 155 — 155 — 116 — 116 —
Insurance contracts (c) 950 — 950 — 999 — 999 —
Total other noncurrent assets 1,105 — 1,105 — 1,115 — 1,115 —
Total assets $ 12,315 $ 653 $ 11,663 $ — $ 13,953 $ 642 $ 13,311 $ —
Financial liabilities:
Other current liabilities
Derivative liabilities:
Interest rate contracts $ 1 $ — $ 1 $ — $ 16 $ — $ 16 $ —
Foreign exchange contracts 283 — 283 — 412 — 412 —
Contingent consideration liabilities (d) 95 — — 95 95 — — 95
Total other current liabilities 379 — 284 95 523 — 428 95
Other noncurrent liabilities
Derivative liabilities:
Interest rate contracts 275 — 275 — 215 — 215 —
Foreign exchange contracts 807 — 807 — 815 — 815 —
Contingent consideration liabilities (d) 1,946 — — 1,946 1,695 — — 1,695
Total other noncurrent liabilities 3,027 — 1,081 1,946 2,725 — 1,030 1,695
Total liabilities $ 3,406 $ — $ 1,365 $ 2,041 $ 3,248 $ — $ 1,458 $ 1,790

(a)
Includes money market funds primarily invested in U.S. Treasury and government debt.
(b)
Long-term equity securities of $
147
million as of March 29, 2026 and $
146
million as of December 31, 2025 were held in restricted trusts for U.S. non-qualified employee benefit plans.
(c)
Includes life insurance policies held in restricted trusts for U.S. non-qualified employee benefit plans. The underlying invested assets in these contracts are marketable securities, which are carried at fair value, with changes in fair value recognized in
Other (income)/deductions—net
(see
Note 4
).
(d)
Includes the fair value of contingent consideration associated with the acquisition of Metsera and certain prior business combinations. Fair value is estimated by using a probability-weighted discounted cash flow approach (see
Notes 1D
and
16D
in our 2025 Form 10-K and
N
ote 2A
for additional information on contingent consideration liabilities).
15
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

The following provides the changes in our contingent consideration liabilities valued using significant unobservable inputs:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Fair value, beginning $ 1,790 $ 517
Changes in estimated fair value (a) 295 8
Additions — —
Settlements and other ( 45 ) ( 48 )
Transfer into/(out of) Level 3 — —
Fair value, ending $ 2,041 $ 477

(a)
Reported in
Other (income)/deductions
––
net
. See
Note 4
.
The amount in the first quarter of 2026 is primarily related to our acquisition of Metsera.
Financial Assets and Liabilities Not Measured at Fair Value on a Recurring Basis––
The carrying value of Long-term debt, excluding the current portion, was $
61
 billion as of March 29, 2026 and $
62
 billion as of December 31, 2025. The estimated fair value of such debt, using a market approach and Level 2 inputs, was $
58
 billion as of March 29, 2026 and $
60
 billion as of December 31, 2025.
The differences between the estimated fair values and carrying values of held-to-maturity debt securities, private equity securities, long-term receivables and short-term borrowings not measured at fair value on a recurring basis were not significant as of March 29, 2026 and December 31, 2025. The fair value measurements of our held-to-maturity debt securities and short-term borrowings are based on Level 2 inputs. The fair value measurements of our long-term receivables and private equity securities are based on Level 3 inputs.
B. Investments
Total Short-Term and Long-Term Investments
The following summarizes our investments by classification type:
(MILLIONS) March 29, 2026 December 31, 2025
Short-term investments
Equity securities with readily determinable fair values $ 1,865 $ 2,596
Available-for-sale debt securities 8,189 9,183
Held-to-maturity debt securities 1,318 675
Total Short-term investments $ 11,372 $ 12,454
Long-term investments
Equity securities with readily determinable fair values (a) $ 653 $ 642
Available-for-sale debt securities — 1
Held-to-maturity debt securities 47 48
Private equity securities at cost (a) 688 696
Equity-method investments 237 235
Total Long-term investments $ 1,626 $ 1,621

(a)
Represent investments in the life sciences sector
.
Debt Securities
Our investment portfolio consists of investment-grade debt securities issued across diverse governments, corporate and financial institutions:
March 29, 2026 December 31, 2025
Gross Unrealized Maturities (in Years) Gross Unrealized
(MILLIONS) Amortized Cost Gains Losses Fair Value Within 1 Over 1 to 5 Over 5 Amortized Cost Gains Losses Fair Value
Available-for-sale debt securities
Government and agency –– non-U.S. $ 3,860 $ 29 $ ( 2 ) $ 3,888 $ 3,888 $ — $ — $ 4,890 $ 3 $ ( 34 ) $ 4,859
Government and agency––U.S. 2,935 — — 2,935 2,935 — — 3,030 — — 3,030
Corporate and other 1,366 — — 1,366 1,366 — — 1,295 — ( 1 ) 1,294
Held-to-maturity debt securities
Corporate, time deposits and other 756 — — 756 710 9 37 487 — — 487
Government and agency –– non-U.S. 610 — — 610 608 — 1 236 — — 236
Total debt securities $ 9,526 $ 29 $ ( 2 ) $ 9,554 $ 9,507 $ 10 $ 38 $ 9,938 $ 3 $ ( 35 ) $ 9,906

16
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Any expected credit losses to these portfolios would be immaterial to our financial statements.
Equity Securities
The following presents the calculation of the portion of unrealized (gains)/losses that relates to equity securities, excluding equity-method investments, held at the reporting date:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Net (gains)/losses recognized during the period on equity securities (a) $ 9 $ 370
Less: Net (gains)/losses recognized during the period on equity securities sold during the period ( 6 ) ( 924 )
Net unrealized (gains)/losses during the reporting period on equity securities still held at the reporting date $ 15 $ 1,295

(a)
Reported in
Other
(
income
)
/deductions
––
net.
See
Note 4
.
Included in net unrealized (gains)/losses are observable price changes on equity securities without readily determinable fair values. As of March 29, 2026, there were cumulative impairments and downward adjustments of $
444
million and upward adjustments of $
225
million. Impairments, downward and upward adjustments were not material to our operations in the first quarters of 2026 and 2025.
C. Short-Term Borrowings
Short-term borrowings include:
(MILLIONS) March 29, 2026 December 31, 2025
Current portion of long-term debt, principal amount $ 3,864 $ 3,000
Other short-term borrowings, principal amount (a) 29 157
Total short-term borrowings, principal amount 3,893 3,157
Net unamortized discounts, premiums and debt issuance costs ( 3 ) ( 3 )
Total Short-term borrowings, including current portion of long-term debt , carried at historical proceeds, as adjusted $ 3,890 $ 3,154

(a)
Primarily includes cash collateral. See

Note 7F
.
D. Long-Term Debt
The following summarizes the aggregate principal amount of our senior unsecured long-term debt, and adjustments to report our aggregate long-term debt:
(MILLIONS) March 29, 2026 December 31, 2025
Total long-term debt, principal amount $ 60,313 $ 61,293
Net fair value adjustments related to hedging and purchase accounting 726 834
Net unamortized discounts, premiums and debt issuance costs ( 473 ) ( 486 )
Total long-term debt, carried at historical proceeds, as adjusted $ 60,565 $ 61,641

E. Derivative Financial Instruments and Hedging Activities
Foreign Exchange Risk––
A significant portion of our revenues, earnings and net investments in foreign affiliates is exposed to changes in foreign exchange rates. Where foreign exchange risk is not offset by other exposures, we manage our foreign exchange risk principally through the use of derivative financial instruments and foreign currency debt. These financial instruments serve to mitigate the impact on net income as a result of remeasurement into another currency, or against the impact of translation into U.S. dollars of certain foreign exchange-denominated transactions.
The derivative financial instruments primarily hedge or offset exposures in the euro, U.K. pound, Chinese renminbi, Japanese yen, Canadian dollar, and Swedish krona, and include a portion of our forecasted foreign exchange-denominated intercompany inventory sales hedged up to
two years
. We may also seek to protect against possible declines in the net investments of our foreign business entities.
Interest Rate Risk––
Our interest-bearing investments and borrowings are subject to interest rate risk. Depending on market conditions, we may change the profile of our outstanding debt or investments by entering into derivative financial instruments like interest rate swaps, either to hedge or offset the exposure to changes in the fair value of hedged items with fixed interest
17
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

rates, or to convert variable rate debt or investments to fixed rates. The derivative financial instruments primarily hedge U.S. dollar fixed-rate debt.
The following summarizes the fair value of the derivative financial instruments and notional amounts:
March 29, 2026 December 31, 2025
Fair Value Fair Value
(MILLIONS) Notional Asset Liability Notional Asset Liability
Derivatives designated as hedging instruments :
Foreign exchange contracts (a) $ 23,593 $ 517 $ 942 $ 22,984 $ 325 $ 1,066
Interest rate contracts 7,995 33 276 6,750 52 230
550 1,218 377 1,296
Derivatives not designated as hedging instruments :
Foreign exchange contracts $ 17,134 109 147 $ 22,777 155 162
Total $ 659 $ 1,365 $ 532 $ 1,458

(a)
The notional amount of outstanding foreign exchange contracts hedging our intercompany forecasted inventory sales was $
4.9
 billion as of March 29, 2026 and $
5.0
 billion as of December 31, 2025.
The following summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk exposures:
Gains/(Losses) Recognized in OID (a) Gains/(Losses) Recognized in OCI (a) Gains/(Losses) Reclassified from OCI into OID and COS (a)
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025
Derivative Financial Instruments in Cash Flow Hedge Relationships:
Interest rate contracts $ — $ — $ — $ — $ — $ 2
Foreign exchange contracts (b) — — ( 48 ) ( 138 ) ( 21 ) 295
Amount excluded from effectiveness testing and amortized into earnings (c) — — 12 15 12 16
Derivative Financial Instruments in Fair Value Hedge Relationships:
Interest rate contracts ( 85 ) 142 — — — —
Hedged item 85 ( 142 ) — — — —
Derivative Financial Instruments in Net Investment Hedge Relationships:
Foreign exchange contracts — — 240 ( 437 ) — —
Amount excluded from effectiveness testing and amortized into earnings (c) — — 47 75 53 41
Non-Derivative Financial Instruments in Net Investment Hedge Relationships (d) :
Foreign currency short-term borrowings — — 18 — — —
Foreign currency long-term debt — — ( 2 ) ( 31 ) — —
Derivative Financial Instruments Not Designated as Hedges:
Foreign exchange contracts ( 13 ) ( 31 ) — — — —
$ ( 13 ) $ ( 31 ) $ 267 $ ( 517 ) $ 44 $ 354

(a)
OID = Other (income)/deductions—net, included in
Other
(
income
)
/deductions—net
in the condensed consolidated statements of operations
.
COS = Cost of Sales, included in
Cost of sales
in the condensed consolidated statements of operations. OCI = Other comprehensive income/(loss), included in the condensed consolidated statements of comprehensive income/(loss)
.
(b)
The amounts reclassified from OCI into COS were a net loss of $
14
million in the first quarter of 2026 and a net gain of $
62
million in the first quarter of 2025. The remaining amounts were reclassified from OCI into OID. Based on quarter-end foreign exchange rates that are subject to change, we expect to reclassify a pre-tax loss of $
9
million within the next 12 months into income
.
The maximum length of time over which we are hedging our exposure to the variability in future foreign exchange cash flows is approximately
17
years and relates to foreign currency debt.
(c)
The amounts reclassified from OCI were reclassified into OID.
(d)
Long-term debt includes foreign currency borrowings, which are used in net investment hedges; the related carrying values as of March 29, 2026 and December 31, 2025 were $
863
million and $
879
million, respectively.
18
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

The following summarizes cumulative basis adjustments to our long-term debt in fair value hedges:
March 29, 2026 December 31, 2025
Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount Cumulative Amount of Fair Value Hedging Adjustment Increase/(Decrease) to Carrying Amount
(MILLIONS) Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships Carrying Amount of Hedged Assets/Liabilities (a) Active Hedging Relationships Discontinued Hedging Relationships
Long-term debt $ 8,429 $ ( 248 ) $ 803 $ 7,110 $ ( 163 ) $ 821

(a)
Carrying amounts exclude the cumulative amount of fair value hedging adjustments.
F. Credit Risk
A significant portion of our trade accounts receivable balances are due from wholesalers and governments. For additional information on our trade accounts receivables with significant customers, see
Note 17C
in our 2025 Form 10-K.
As of March 29, 2026, the largest investment exposures in our portfolio consisted primarily of U.S. government money market funds, as well as sovereign debt instruments issued by the U.S., the U.K., France, Sweden, and Japan.
With respect to our derivative financial instrument agreements with financial institutions, we do not expect to incur a significant loss from failure of any counterparty. Derivative financial instruments are executed under International Swaps and Derivatives Association master agreements with credit-support annexes that contain zero threshold provisions requiring collateral to be exchanged daily depending on levels of exposure. As a result, there are no significant concentrations of credit risk with any individual financial institution. As of March 29, 2026, the aggregate fair value of these derivative financial instruments that are in a net payable position was $
1.1
 billion, for which we have posted collateral of $
1.2
billion

with a corresponding amount reported in
Short-term investments
. As of March 29, 2026, the aggregate fair value of our derivative financial instruments that are in a net receivable position was $
41
 million, for which we have received collateral of $
29
 million with a corresponding amount reported in
Short-term borrowings, including current portion of long-term debt.

Note 8.
Other Financial Information
A.
Inventories
The following summarizes the components of Inventories :
(MILLIONS) March 29, 2026 December 31, 2025
Finished goods $ 4,031 $ 4,113
Work-in-process 5,713 5,634
Raw materials and supplies 923 907
Inventories $ 10,667 $ 10,654
Noncurrent inventories not included above (a) $ 2,462 $ 2,370

(a)
Included in
Other noncurrent assets
. Based on our current estimates and assumptions, there are no recoverability issues for these amounts.
B. Supplier Finance Program Obligation
We maintain voluntary supply chain finance agreements with several participating financial institutions. Under these agreements, participating suppliers may voluntarily elect to sell their accounts receivable with Pfizer to these financial institutions. As of March 29, 2026 and December 31, 2025, respectively, $
518
 million and $
574
 million of our trade payables to suppliers who participate in these financing arrangements were outstanding.
19
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 9.
Identifiable Intangible Assets, Net and Goodwill
A. Identifiable Intangible Assets
The following summarizes the components of Identifiable intangible assets :
March 29, 2026 December 31, 2025
(MILLIONS) Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, Net Gross Carrying Amount Accumulated Amortization Identifiable Intangible Assets, Net
Finite-lived intangible assets
Developed technology rights (a) $ 101,396 $ ( 71,491 ) $ 29,905 $ 100,630 $ ( 70,172 ) $ 30,458
Brands 1,035 ( 1,035 ) — 1,035 ( 1,035 ) —
Licensing agreements and other 2,350 ( 1,336 ) 1,013 2,341 ( 1,289 ) 1,052
104,780 ( 73,862 ) 30,918 104,006 ( 72,496 ) 31,510
Indefinite-lived intangible assets
IPR&D (a) 21,180 21,180 21,760 21,760
Licensing agreements and other 460 460 460 460
21,641 21,641 22,221 22,221
Identifiable intangible assets $ 126,421 $ ( 73,862 ) $ 52,559 $ 126,227 $ ( 72,496 ) $ 53,731

(a)
The gross carrying amounts reflect a transfer of
$
580
 million from
IPR&D to developed technology rights for Tukysa (tucatinib)
.
B. Goodwill
As a result of the organizational changes to the commercial structure within the Biopharma operating segment effective in the first quarter of 2026 (see
Note 13A
), our goodwill is required to be reallocated amongst impacted reporting units. The reallocation of goodwill is a complex process that requires, among other things, determination of the fair value of each reporting unit under our old and new organizational structure and the portions being transferred. The reallocation will be completed in the current fiscal year. All goodwill continues to be assigned within the Biopharma reportable segment.
Note 10.
Pension and Postretirement Benefit Plans
The following summarizes the components of net periodic benefit cost/(credit):
Pension Plans
U.S. International Postretirement Plans
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025
Service cost $ — $ — $ 24 $ 24 $ 4 $ 4
Interest cost 127 133 75 70 7 6
Expected return on plan assets ( 188 ) ( 184 ) ( 82 ) ( 79 ) ( 16 ) ( 14 )
Amortization of prior service cost/(credit) — — 1 1 ( 8 ) ( 32 )
Actuarial (gains)/losses — — 8 — — —
Curtailments — — 3 ( 9 ) ( 5 ) ( 50 )
Special termination benefits — — 5 — — —
Net periodic benefit cost/(credit) reported in income $ ( 60 ) $ ( 51 ) $ 34 $ 8 $ ( 18 ) $ ( 85 )

The components of net periodic benefit cost/(credit) other than the service cost component are primarily included in
Other (income)/deductions––net
(see
Note 4
).
For the three months ended March 29, 2026, we contributed $
63
million to our U.S. Pension Plans and $
68
million to our International Pension Plans from our general assets, which include direct employer benefit payments.

20
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 11.
Earnings Per Common Share Attributable to Pfizer Inc. Common Shareholders
The following presents the detailed calculation of EPS:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
EPS Numerator
Income from continuing operations attributable to Pfizer Inc. common shareholders $ 2,701 $ 2,967
Discontinued operations––net of tax ( 13 ) —
Net income attributable to Pfizer Inc. common shareholders $ 2,687 $ 2,967
EPS Denominator
Weighted-average number of common shares outstanding––Basic 5,691 5,675
Common-share equivalents 40 36
Weighted-average number of common shares outstanding––Diluted 5,731 5,710
Anti-dilutive common stock equivalents (a) 11 17

(a)
These common stock equivalents were outstanding for the periods presented, but were not included in the computation of diluted EPS for those periods because their inclusion would have had an anti-dilutive effect.
Note 12.
Contingencies and Certain Commitments
We and certain of our subsidiaries are subject to numerous contingencies arising in the ordinary course of business, including tax and legal contingencies, guarantees and indemnifications. The following outlines our legal contingencies, guarantees and indemnifications. For a discussion of our tax contingencies, see
Note 5B
.
A. Legal Proceedings
Our legal contingencies include, but are not limited to, the following:
•
Patent litigation, which typically involves challenges to the coverage and/or validity of patents on various products, processes or dosage forms. An adverse outcome could result in loss of patent protection for a product, a significant loss of revenues from a product or impairment of the value of associated assets. We are the plaintiff in the majority of these actions.
•
Product liability and other product-related litigation related to current or former products, which can include personal injury, consumer fraud, off-label promotion, securities, antitrust and breach of contract claims, among others, and often involves highly complex issues relating to medical causation, label warnings and reliance on those warnings, scientific evidence and findings, actual, provable injury and other matters.
•
Commercial and other asserted or unasserted matters, which can include acquisition-, licensing-, intellectual property-, collaboration- or co-promotion-related and product-pricing claims and environmental claims and proceedings, and can involve complexities that will vary from matter to matter.
•
Government investigations, which often are related to the extensive regulation of pharmaceutical companies by national, state and local government agencies in the U.S. and in other jurisdictions.
Certain of these contingencies could result in increased expenses and/or losses, including damages, royalty payments, fines and/or civil penalties, which could be substantial, and/or criminal charges.
We believe that our claims and defenses in matters in which we are a defendant are substantial, but litigation is inherently unpredictable and excessive verdicts do occur. We do not believe that any of these matters will have a material adverse effect on our financial position. However, we could incur judgments, enter into settlements or revise our expectations regarding the outcome of matters, which could have a material adverse effect on our results of operations and/or our cash flows in the period in which the amounts are accrued or paid.
We have accrued for losses that are both probable and reasonably estimable. Substantially all of our contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex. Consequently, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessments, which result from a complex series of judgments about future events and uncertainties, are based on estimates and assumptions that have been deemed reasonable by management, but that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change those estimates and assumptions.
Amounts recorded for legal and environmental contingencies can result from a complex series of judgments about future events and uncertainties and can rely heavily on estimates and assumptions. For proceedings under environmental laws to which a
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PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

governmental authority is a party, we have adopted a disclosure threshold of $
1
million in potential or actual governmental monetary sanctions.
The principal pending matters to which we are a party are discussed below. In determining whether a pending matter is a principal matter, we consider both quantitative and qualitative factors to assess materiality, such as, among others, the amount of damages and the nature of other relief sought, if specified; our view of the merits of the claims and of the strength of our defenses; whether the action purports to be, or is, a class action and, if not certified, our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; whether related actions have been transferred to multidistrict litigation; any experience that we or, to our knowledge, other companies have had in similar proceedings; whether disclosure of the action would be important to a reader of our financial statements, including whether disclosure might change a reader’s judgment about our financial statements in light of all of the information that is available to the reader; the potential impact of the proceeding on our reputation; and the extent of public interest in the matter. In addition, with respect to patent matters in which we are the plaintiff, we consider, among other things, the financial significance of the product protected by the patent(s) at issue. Some of the matters discussed below include those which management believes that the likelihood of possible loss in excess of amounts accrued is remote.
A1. Legal Proceedings––Patent Litigation
We are involved in suits relating to our patents (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights), including but not limited to, those discussed below. We face claims by generic drug manufacturers that patents covering our products (or those of our collaboration/licensing partners to which we have licenses or co-promotion rights and to which we may or may not be a party), processes or dosage forms are invalid and/or do not cover the product of the generic drug manufacturer. Also, counterclaims, as well as various independent actions, have been filed alleging that our assertions of, or attempts to enforce, patent rights with respect to certain products constitute unfair competition and/or violations of antitrust laws. In addition to the challenges to the U.S. 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. Some of our collaboration or licensing partners face challenges to the validity of their patent rights in non-U.S. jurisdictions. For example, in April 2022, the U.K. High Court issued a judgment finding invalid a BMS patent related to Eliquis due to expire in 2026, and this judgment is now final. Additional challenges are pending in other jurisdictions. Adverse decisions in these matters could have a material adverse effect on our results of operations.

We are also party to patent damages suits in various jurisdictions pursuant to which generic drug manufacturers, payors, governments or other parties are seeking damages from us for allegedly causing delay of generic entry.
We also are often involved in other proceedings, such as
inter partes
review, post-grant review, re-examination or opposition proceedings, before the U.S. Patent and Trademark Office, the European Patent Office, or other foreign counterparts, as well as court proceedings relating to our intellectual property or the intellectual property rights of others, including challenges to such rights initiated by us. Also, if one of our patents (or one of our collaboration/licensing partner’s patents) is found to be invalid by such proceedings, generic or competitive products could be introduced into the market resulting in the erosion of sales of our existing products. For example, several of the patents in our pneumococcal vaccine portfolio have been challenged in
inter partes
review and post-grant review proceedings in the U.S. Patent and Trademark Office, as well as outside the U.S.

The invalidation of any of the patents in our pneumococcal portfolio could potentially allow additional competitor vaccines, if approved, to enter the marketplace earlier than anticipated. In the event that any of the patents are found valid and infringed, a competitor’s vaccine, if approved, might be prohibited from entering the market or a competitor might be required to pay us a royalty.
We are also subject to patent litigation pursuant to which one or more third parties seek damages and/or injunctive relief to compensate for alleged infringement of its patents by our commercial or other activities. If one of our marketed products (or a product of our collaboration/licensing partners to which we have licenses or co-promotion rights) is found to infringe valid patent rights of a third party, such third party may be awarded significant damages or royalty payments, or we may be prevented from further sales of that product. Such damages may be enhanced as much as three-fold if we or one of our subsidiaries is found to have willfully infringed valid patent rights of a third party.
Actions In Which We Are The Plaintiff
Vyndaqel-Vyndamax (tafamidis/tafamidis meglumine)
Beginning in June 2023, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of tafamidis capsules (61 mg) or tafamidis meglumine capsules (20 mg), challenging some or all of the patents listed in the FDA’s Orange Book for Vyndamax (tafamidis) and Vyndaqel (tafamidis meglumine). Scripps Research Institute (Scripps) owns the composition of matter patent and the method of treatment patents covering the products, and Pfizer is the exclusive licensee. Pfizer separately owns the crystalline form patent. Beginning in August 2023, we and Scripps brought
22
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

patent infringement actions against the generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the patents in suit. Pfizer is the sole plaintiff in actions that assert only the infringement and validity of the crystalline form patent. In March 2026, we settled the case involving Vyndaqel on terms not material to the Company. In April 2026, we settled
three
cases involving Vyndamax. Under the terms of the settlements, the generic companies will be permitted to launch generic versions of Vyndamax capsules on June 1, 2031, subject to the outcome of other litigation relating to Vyndamax. An additional patent infringement action involving Apotex Corp. relating to Vyndamax is ongoing in the U.S. District Court for the District of Delaware.
Oxbryta (voxelotor)
In January 2024, Zydus Pharmaceuticals (USA) Inc., Zydus Lifesciences Limited, and Zydus Worldwide DMCC (collectively, Zydus) and MSN Pharmaceuticals Inc. and MSN Laboratories Private Ltd. (collectively, MSN) separately notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of voxelotor tablets, challenging some of the patents listed in the FDA’s Orange Book for Oxbryta (voxelotor tablets in 300 mg and 500 mg strengths and/or for oral suspension) on non-infringement grounds. In March 2024, we filed patent infringement actions against both generic filers in the U.S. District Court for the District of Delaware, asserting the validity and infringement of the challenged patents. Zydus and MSN have not challenged our composition of matter patents or method of treatment patents for Oxbryta.
Nurtec (rimegepant)
In April 2024, Rubicon Research Private Limited, Teva Pharmaceuticals, Inc., Changzhou Pharmaceutical Factory, Natco Pharma Limited and Natco Pharma, Inc., MSN, Aurobindo Pharma Limited, Apitoria Pharma Private Limited and Aurobindo Pharma U.S.A. Inc. (collectively, Aurobindo) and Apotex Inc. and Apotex Corp. (collectively, Apotex) notified us that they had filed ANDAs with the FDA seeking approval to market generic versions of rimegepant orally disintegrating tablets, claiming noninfringement and/or challenging the validity of some or all of the patents listed in the FDA’s Orange Book for Nurtec (rimegepant orally disintegrating tablets Eq 75 mg base). In May 2024, we filed patent infringement actions against all the generic filers in the U.S. District Court for the District of Delaware.
Xtandi (enzalutamide)
Beginning in August 2024, several generic companies notified us and Astellas that they had filed ANDAs with the FDA seeking approval to market generic versions of Xtandi, challenging some or all of the patents listed in the FDA’s Orange Book for Xtandi. Beginning in August 2024, we and Astellas brought patent infringement actions against the generic filers in the U.S. District Court for the District of New Jersey, asserting the validity and infringement of the patents in suit.
Cibinqo (abrocitinib)
In March 2026, Micro Labs Limited and Micro Labs USA, Inc. (collectively, Micro Labs), Changzhou Pharmaceutical Factory (Changzhou), and Biocon Limited, Biocon Pharma Limited and Biocon Pharma, Inc. (collectively, Biocon) notified us that they filed ANDAs with the FDA seeking approval to market generic versions of abrocitinib and challenging all
three
patents listed in the Orange Book. In April 2026, we filed patent infringement actions against Micro Labs, Changzhou and Biocon in the U.S. District Court for the District of Delaware asserting the infringement and validity of the challenged patents.
Actions in Which We are the Defendant
Comirnaty (tozinameran)
In August 2022, ModernaTX, Inc. (ModernaTX) and Moderna US, Inc. (Moderna) sued Pfizer, BioNTech, BioNTech Manufacturing GmbH and BioNTech US Inc. in the U.S. District Court for the District of Massachusetts, alleging that Comirnaty infringes
three
U.S. patents. In its complaint, Moderna stated that it is seeking damages for alleged infringement occurring after March 7, 2022. In March 2024, the U.S. Patent Office Patent Trial & Appeal Board instituted a review of
two
of the
three
patents in suit. In March 2025, the U.S. Patent Office issued a decision holding that the
two
Moderna patents were invalid.
In August 2022, ModernaTX filed a patent infringement action in Germany against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, alleging that Comirnaty infringes
two
European patents. In March 2025, a German court found the asserted patents infringed; no decision on invalidity was rendered. In September 2022, ModernaTX filed patent infringement actions in the U.K. and in the Netherlands against Pfizer and certain subsidiary companies, as well as BioNTech and certain subsidiary companies, on the same
two
European patents. In its complaints, ModernaTX stated that it is seeking damages for alleged infringement occurring after March 7, 2022. In November 2023,
one
of the European patents was revoked by the European Patent Office and, in January 2026, that decision became final. In December 2023, the other European patent was declared invalid by a court in the Netherlands (the invalidity decision is limited to the Netherlands). In July 2024, the U.K. court revoked
one
patent, ruling that it was invalid, and held that the other patent was valid and infringed. In July 2025, the U.K. Court of Appeal affirmed the lower court ruling that the other patent is valid and infringed. ModernaTX has also filed additional patent infringement actions against Pfizer and BioNTech in certain other ex-U.S. jurisdictions.
23
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

In April 2023, Arbutus Biopharma Corporation (Arbutus) and Genevant Sciences GmbH (Genevant) filed a complaint in the U.S. District Court for the District of New Jersey against Pfizer and BioNTech alleging that Comirnaty and its manufacture infringe
five
U.S. patents, and seeking unspecified monetary damages.
In April 2024, GlaxoSmithKline Biologicals SA and GlaxoSmithKline LLC (collectively, GSK Group) sued Pfizer and Pharmacia & Upjohn Company LLC, BioNTech, BioNTech Manufacturing GmbH and BioNTech US Inc. in the U.S. District Court for the District of Delaware, alleging that Comirnaty infringes
five
U.S. patents and seeking unspecified money damages. In August 2024, GSK Group filed an amended complaint alleging that Comirnaty infringes
three
additional U.S. patents. In July 2025, GSK Group sued several Pfizer and BioNTech entities in Ireland, alleging that Comirnaty infringes
three
European patents. Also in July 2025, GSK Group sued several Pfizer and BioNTech entities in the Unified Patent Court, alleging that Comirnaty infringes
two
European patents, both of which are at issue in the Irish lawsuit. Additional patent infringement actions between GSK Group and Pfizer/BioNTech are ongoing in certain other ex-U.S. jurisdictions.
In January 2025, Promosome LLC filed a complaint in the Unified Patent Court, Local Division Munich, against Pfizer and BioNTech and certain of their subsidiaries alleging that Comirnaty infringes a European patent that is in force only in France, Germany and Sweden, and seeking unspecified monetary damages in connection with the manufacture and sale of Comirnaty in France, Germany and Sweden.
In January 2026, Bayer Cropscience LLC, Monsanto Company and Monsanto Technology, LLC filed a complaint in the U.S. District Court for the District of Delaware against Pfizer and BioNTech, BioNTech Manufacturing GmbH and BioNTech US Inc, alleging that Comirnaty infringes a U.S. patent issued in 2010 and seeking unspecified money damages.
Paxlovid
In June 2022, Enanta Pharmaceuticals, Inc. (Enanta) filed a complaint in the U.S. District Court for the District of Massachusetts against Pfizer alleging that the active ingredient in Paxlovid, nirmatrelvir, infringes a U.S.
patent issued in June 2022, and seeking unspecified monetary damages. In December

2024, the District Court issued an order granting Pfizer’s motion for summary judgment, finding Enanta’s patent invalid.
In August 2025, Enanta filed a patent infringement complaint in the Unified Patent Court, Local Division Munich, against Pfizer alleging that the active ingredient in Paxlovid, nirmatrelvir, infringes a European
patent issued in August 2025, and seeking unspecified monetary damages.
Matters Involving Pfizer and its Collaboration/Licensing Partners
Orgovyx (relugolix)
Beginning in January 2025, several generic companies notified us that they had filed ANDAs with the FDA seeking approval to sell a generic form of relugolix (Orgovyx), and challenging one or more patents listed in the FDA’s Orange Book for Orgovyx which are licensed to Pfizer. In March 2025, we, along with Sumitomo Pharma Switzerland GBBH, Sumitomo Pharma America, Inc., Takeda and Takeda Pharmaceuticals International AG jointly filed separate patent infringement actions in the U.S. District Court for the District of Delaware against the generic companies, asserting the infringement and validity of the patents in suit.
Eliquis (apixaban)
In December 2025, BMS and Pfizer filed a patent infringement action in the U.S. District Court for the District of Delaware against Azurity Pharmaceuticals, Inc. (Azurity), alleging that Azurity’s proposed generic apixaban product would infringe a formulation patent expiring in 2031.
A2. Legal Proceedings––Product Litigation
We are defendants in numerous cases, including but not limited to those discussed below, related to our pharmaceutical and other products. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss.
Asbestos
Numerous lawsuits against Pfizer and certain of its previously owned subsidiaries are pending in various federal and state courts seeking damages for alleged personal injury from exposure to products allegedly containing asbestos and other allegedly hazardous materials sold by Pfizer and certain of its previously owned subsidiaries.

In addition, between 1967 and 1982, Warner-Lambert owned American Optical Corporation (American Optical), which manufactured and sold respiratory protective devices and asbestos safety clothing. In connection with the sale of American Optical in 1982, Warner-Lambert agreed to indemnify the purchaser for certain liabilities, including certain asbestos-related and other claims. Warner-Lambert was acquired by Pfizer in 2000 and is a wholly owned subsidiary of Pfizer. Warner-Lambert is actively engaged in the defense of, and will continue to explore various means of resolving, these claims.
24
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

There also are a small number of lawsuits pending in various federal and state courts seeking damages for alleged exposure to asbestos in facilities owned or formerly owned by Pfizer or its subsidiaries.
Docetaxel
A number of lawsuits have been filed against Hospira and Pfizer in various federal and state courts alleging that plaintiffs who were treated with Docetaxel developed permanent hair loss. Hospira is a wholly-owned subsidiary that we acquired in September 2015. The significant majority of the cases also name other defendants, including the manufacturer of the branded product, Taxotere. Plaintiffs seek compensatory and punitive damages. Additional lawsuits have been filed in which plaintiffs allege they developed blocked tear ducts following their treatment with Docetaxel.
In 2016, the federal cases were transferred for coordinated pre-trial proceedings to an MDL in the U.S. District Court for the Eastern District of Louisiana. In 2022, the eye injury cases were transferred for coordinated pre-trial proceedings to an MDL in the U.S. District Court for the Eastern District of Louisiana. All of the hair loss and eye injury cases filed against Hospira and Pfizer have been dismissed with prejudice.
Zantac
A number of lawsuits have been filed against Pfizer in various federal and state courts alleging that plaintiffs developed various types of cancer, or face an increased risk of developing cancer, purportedly as a result of the ingestion of Zantac. The significant majority of these cases also name other defendants that have historically manufactured and/or sold Zantac. Pfizer has not sold Zantac since 2006, and only sold an OTC version of the product. In 2006, Pfizer sold the consumer business that included its Zantac OTC rights to Johnson & Johnson and transferred the assets and liabilities related to Zantac OTC to Johnson & Johnson in connection with the sale. Plaintiffs in these cases seek compensatory and punitive damages.
In February 2020, the federal actions were transferred for coordinated pre-trial proceedings to an MDL in the U.S. District Court for the Southern District of Florida (the Federal MDL Court). Plaintiffs in the MDL filed against Pfizer and many other defendants a master personal injury complaint, a consolidated consumer class action complaint alleging, among other things, claims under consumer protection statutes of all 50 states, and a medical monitoring complaint seeking to certify medical monitoring classes under the laws of 13 states. In December 2022, the Federal MDL Court granted defendants’ Daubert motions to exclude plaintiffs’ expert testimony and motion for summary judgment on general causation, which has resulted in the dismissal of all complaints in the litigation. Plaintiffs have appealed the Federal MDL Court’s rulings.
In addition, (i) Pfizer has received service of Canadian class action complaints naming Pfizer and other defendants, and seeking compensatory and punitive damages for personal injury and economic loss, allegedly arising from the defendants’ sale of Zantac in Canada; and (ii) the State of New Mexico and the Mayor and City Council of Baltimore separately filed civil actions against Pfizer and many other defendants in state courts, alleging various state statutory and common law claims in connection with the defendants’ alleged sale of Zantac in those jurisdictions. In April 2026, the Company reached agreements with the State of New Mexico and the Mayor and City Council of Baltimore on terms not material to Pfizer. In April 2021, a Judicial Council Coordinated Proceeding was created in the Superior Court of California in Alameda County to coordinate personal injury actions against Pfizer and other defendants filed in California state court. Coordinated proceedings have also been created in other state courts. The large majority of the state court cases have been filed in the Superior Court of Delaware in New Castle County.
Many of these Zantac-related cases have been outstanding for a number of years. From time to time, Pfizer has explored and will continue to explore opportunistic settlements of these matters. As of May 2026, Pfizer had settled, or entered into definitive agreements or agreements-in-principle to settle, subject to certain conditions, a substantial majority of the cases filed in state courts in which the plaintiff alleges use of a Pfizer product. The remaining unresolved state court cases continue in various state courts.
Chantix
Beginning in August 2021, a number of putative class actions have been filed against Pfizer in various U.S. federal courts following Pfizer’s voluntary recall of Chantix due to the presence of a nitrosamine, N-nitroso-varenicline. Plaintiffs assert that they suffered economic harm purportedly as a result of purchasing Chantix or generic varenicline medicines sold by Pfizer. Plaintiffs seek to represent nationwide and state-specific classes and seek various remedies, including damages and medical monitoring. In December 2022, the federal actions were transferred for coordinated pre-trial proceedings to an MDL in the U.S. District Court for the Southern District of New York. In March 2026, the parties reached an agreement in principle to resolve the litigation on terms not material to Pfizer. The agreement is subject to court approval.
Depo-Provera
A number of lawsuits have been filed against Pfizer and certain subsidiaries in various federal and state courts alleging that plaintiffs who used the injectable version of Depo-Provera (active ingredient medroxyprogesterone acetate, or MPA) for contraception developed meningioma. Some cases also name other defendants, including the manufacturers of generic versions
25
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

of injectable MPA for contraception. Plaintiffs assert claims against Pfizer relating to both Depo-Provera and generic MPA products, and seek compensatory and punitive damages. In February 2025, the federal cases were transferred for coordinated pre-trial proceedings to an MDL in the U.S. District Court for the Northern District of Florida. Also, in 2025, coordinated proceedings were established in several U.S. state jurisdictions, including California, Connecticut, Delaware, and New York.
A3. Legal Proceedings––Commercial and Other Matters
Monsanto-Related Matters
In 1997, Monsanto Company (Former Monsanto) contributed certain chemical manufacturing operations and facilities to a newly formed corporation, Solutia Inc. (Solutia), and spun off the shares of Solutia. In 2000, Former Monsanto merged with Pharmacia & Upjohn Company to form Pharmacia. Pharmacia then transferred its agricultural operations to a newly created subsidiary, named Monsanto Company (New Monsanto), which it spun off in a two-stage process that was completed in 2002. Pharmacia was acquired by Pfizer in 2003 and is a wholly owned subsidiary of Pfizer.
In connection with its spin-off that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities related to Pharmacia’s former agricultural business. New Monsanto has defended and/or is defending Pharmacia in connection with various claims and litigation arising out of, or related to, the agricultural business, and has been indemnifying Pharmacia when liability has been imposed or settlement has been reached regarding such claims and litigation.
In connection with its spin-off in 1997, Solutia assumed, and agreed to indemnify Pharmacia for, liabilities related to Former Monsanto’s chemical businesses. As the result of its reorganization under Chapter 11 of the U.S. Bankruptcy Code, Solutia’s indemnification obligations relating to Former Monsanto’s chemical businesses are primarily limited to sites that Solutia has owned or operated. In addition, in connection with its spin-off that was completed in 2002, New Monsanto assumed, and agreed to indemnify Pharmacia for, any liabilities primarily related to Former Monsanto’s chemical businesses, including, but not limited to, any such liabilities that Solutia assumed. Solutia’s and New Monsanto’s assumption of, and agreement to indemnify Pharmacia for, these liabilities apply to pending actions and any future actions related to Former Monsanto’s chemical businesses in which Pharmacia is named as a defendant, including, without limitation, actions asserting environmental claims, including alleged exposure to polychlorinated biphenyls. Solutia and/or New Monsanto are defending Pharmacia in connection with various claims and litigation arising out of, or related to, Former Monsanto’s chemical businesses, and have been indemnifying Pharmacia when liability has been imposed or settlement has been reached regarding such claims and litigation. In 2018, Bayer AG acquired Monsanto Company (New Monsanto), which is now a subsidiary of Bayer AG. Since the acquisition, New Monsanto has continued to defend and indemnify Pharmacia for these liabilities.
Environmental Matters
In 2009, as part of our acquisition of Wyeth, we assumed responsibility for environmental remediation at the Wyeth Holdings LLC (formerly known as Wyeth Holdings Corporation and American Cyanamid Company) discontinued industrial chemical facility in Bound Brook, New Jersey. Since that time, we have executed or have become a party to a number of administrative settlement agreements, orders on consent, and/or judicial consent decrees, with the U.S. Environmental Protection Agency, the New Jersey Department of Environmental Protection and/or federal and state natural resource trustees to perform remedial design, removal and remedial actions, and related environmental remediation activities, and to resolve alleged damages to natural resources, at the Bound Brook facility. We have accrued for the currently estimated costs of these activities.
We are also party to a number of other proceedings brought under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, and other state, local or foreign laws in which the primary relief sought is the cost of past and/or future remediation.
Contracts with Iraqi Ministry of Health
In 2017, a number of U.S. service members, civilians, and their families brought a complaint in the U.S. District Court for the District of Columbia against a number of pharmaceutical and medical devices companies, including Pfizer and certain of its subsidiaries, alleging that the defendants violated the U.S. Anti-Terrorism Act. The complaint alleges that the defendants provided funding for terrorist organizations through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health and seeks monetary relief. In July 2020, the District Court granted defendants’ motions to dismiss and dismissed all of plaintiffs’ claims. In January 2022, the Court of Appeals reversed the District Court’s decision. In June 2024, the U.S. Supreme Court issued an order granting certiorari, vacating the Court of Appeals’ decision, and remanding the case to the Court of Appeals. In January 2026, the Court of Appeals reversed the District Court’s decision and, in February 2026, the defendants filed a petition seeking reconsideration by the Court of Appeals, which was denied.
Allergan Complaint for Indemnity
In 2019, Pfizer was named as a defendant in a complaint, along with King, filed by Allergan Finance LLC (Allergan) in the Supreme Court of the State of New York, asserting claims for indemnity related to Kadian, which was owned for a short period
26
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

by King in 2008, prior to Pfizer’s acquisition of King in 2010. This suit was voluntarily discontinued without prejudice in January 2021.
Breach of Contract – Comirnaty
In 2023, Pfizer and BioNTech Manufacturing GmbH initiated separate formal proceedings against the Republic of Poland, the Republic of Romania and Hungary in Belgium’s Court of First Instance of Brussels
,
seeking to hold those countries to their commitments for COVID-19 vaccine orders, which were placed as part of their contracts signed in 2021. In April 2026, the Court of First Instance of Brussels issued a judgment in favor of Pfizer and BioNTech against the Republic of Poland and the Republic of Romania. The proceedings against Hungary are continuing separately.
A4. Legal Proceedings––Government Investigations
Like other multi-national pharmaceutical companies, we are subject to extensive regulation by government agencies in the U.S., other developed markets and multiple emerging markets in which we operate. Criminal charges, substantial fines and/or civil penalties, limitations on our ability to conduct business in applicable jurisdictions, corporate integrity or deferred prosecution agreements, as well as reputational harm and increased public interest in the matter could result from government investigations in the U.S. and other jurisdictions in which we do business. These matters often involve government requests for information on a voluntary basis or through subpoenas after which the government may seek additional information through follow-up requests or additional subpoenas. In addition, in a
qui tam
lawsuit in which the government declines to intervene, the relator may still pursue a suit for the recovery of civil damages and penalties on behalf of the government. Among the investigations by government agencies are the matters discussed below.
Greenstone Antitrust Litigation
In 2019 and 2020, Attorneys General of more than 50 states and territories filed
two
complaints in the U.S. District Court for the District of Connecticut against a number of pharmaceutical companies, including Pfizer and Greenstone—a former Pfizer subsidiary that sold generic drugs. As to Greenstone and Pfizer, the complaints allege anticompetitive conduct in violation of federal and state antitrust laws and state consumer protection laws. The State Attorney General complaints were initially transferred to an MDL in the U.S. District Court for the Eastern District of Pennsylvania for coordinated pre-trial proceedings but were transferred back to the District of Connecticut in April 2024. The Greenstone antitrust litigation also includes civil complaints filed in federal and state court by private and governmental plaintiffs against Pfizer, Greenstone, and a number of other defendants. These related civil lawsuits assert allegations that generally overlap with those asserted by the State Attorneys General. All of the related federal lawsuits are part of the MDL pending in Pennsylvania.
U.S. Department of Justice Inquiries relating to India Operations
In March 2020, we received an informal request from the U.S. Department of Justice’s Consumer Protection Branch seeking documents relating to our manufacturing operations in India, including at our former facility located at Irrungattukottai in India. In April 2020, we received a similar request from the U.S. Attorney’s Office for the SDNY regarding a civil investigation concerning operations at our facilities in India. We have produced records pursuant to these requests.
Zantac
––
State of New Mexico and Mayor and City Council of Baltimore Civil Actions
See
Legal Proceedings––Product Litigation––Zantac
above for information regarding civil actions separately filed by the State of New Mexico and the Mayor and City Council of Baltimore alleging various state statutory and common law claims in connection with the defendants’ alleged sale of Zantac in those jurisdictions.
B. Guarantees and Indemnifications
In the ordinary course of business and in connection with the sale of assets and businesses and other transactions, we often indemnify our counterparties against certain liabilities that may arise in connection with the transaction or that are related to events and activities prior to or following a transaction. If the indemnified party were to make a successful claim pursuant to the terms of the indemnification, we may be required to reimburse the loss. These indemnifications are generally subject to various restrictions and limitations. Historically, we have not paid significant amounts under these provisions and, as of March 29, 2026, the estimated fair value of these indemnification obligations is not material to Pfizer.
In addition, in connection with our entry into certain agreements and other transactions, our counterparties may be obligated to indemnify us. For example, our global agreement with BioNTech to co-develop a mRNA-based coronavirus vaccine program aimed at preventing COVID-19 infection includes certain indemnity provisions pursuant to which each of BioNTech and Pfizer has agreed to indemnify the other for certain liabilities that may arise in connection with certain third-party claims relating to Comirnaty.
See
Note 7D
in our 2025 Form 10-K for information on Pfizer Inc.’s guarantee of the debt issued by Pfizer Netherlands International Finance B.V. (a wholly-owned finance subsidiary of Pfizer) in May 2025 and the debt issued by Pfizer Investment
27
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Enterprises Pte. Ltd. (a wholly-owned finance subsidiary of Pfizer) in May 2023. We have also guaranteed the long-term debt of certain subsidiaries of Pfizer and certain companies that we acquired and that now are subsidiaries of Pfizer.
C. Contingent Consideration for Acquisitions
We may be required to make contingent consideration payments to sellers for certain prior Pfizer business combinations that are contingent on future events or outcomes. We also have assumed certain contingent consideration liabilities that were previously promised to sellers by a company subsequently acquired by Pfizer. See
Notes 1D
and
16D
in our 2025 Form 10-K and
Note
s
2A

and

7A
.
Note 13.
Segment, Geographic and Other Revenue Information
A. Segment Information
Beginning in the first quarter of 2026, we manage our commercial operations through
two
operating segments, each led by a single manager: Biopharma and PC1. This structure reflects our current operating model following the wind-down in 2025 of the Pfizer Ignite operating segment. Biopharma is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. PC1 is our contract development and manufacturing organization and a leading supplier of specialty active pharmaceutical ingredients. Biopharma is the only reportable segment. We regularly review our operating segments and the approach used by management to evaluate performance and allocate resources.
Within our Biopharma reportable segment, our commercial divisions market, sell and distribute our products, and global operating functions are responsible for the research, development, manufacturing and supply of our products. Each operating segment is supported by our global corporate enabling functions and other corporate functions. At the beginning of 2026, we made changes in our commercial organization, which included the transition of certain off-patent branded and generic sterile injectables and biosimilars primarily from the Specialty Care and Oncology product portfolios to a new Global Hospital and Biosimilars Division within our Biopharma reportable segment to support our continued focus on commercial execution. Effective January 1, 2026, the commercial structure within our Biopharma reportable segment is as follows:
•
Pfizer U.S. Commercial Division includes the U.S. commercial organization covering Pfizer’s entire product portfolio except for the Global Hospital and Biosimilars organization, as well as the Global Access & Value, Global Chief Marketing Office and Primary Care and Specialty Care U.S. Medical Affairs organizations.
•
Pfizer International Commercial Division includes the ex-U.S. commercial and medical affairs organizations covering Pfizer’s entire product portfolio in all international markets except for the Global Hospital and Biosimilars organization in certain international markets.
•
Global Hospital and Biosimilars Division includes the commercial organization covering Pfizer’s Hospital and Biosimilars product portfolio of off-patent branded and generic sterile injectables and biosimilars except in China, Hong Kong, and certain other international markets, which are part of the Pfizer International Commercial Division.
Other Business Activities and Reconciling Items––
Other business activities include the operating results of PC1 and our former operating segment, Pfizer Ignite, as well as certain pre-tax costs not allocated to our operating segment results, such as costs associated with corporate enabling functions and other corporate costs
.
Reconciling items include the following items, transactions and events that are not allocated to our operating segments: (i) all amortization of intangible assets; (ii) acquisition-related items; and (iii) certain significant items, representing substantive and/or unusual, and in some cases recurring, items that are evaluated on an individual basis by management and that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis.
Segment Assets––
We manage our assets on a total company basis, not by operating segment, as our operating assets are shared or commingled. Therefore, our CODM does not regularly review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Total assets were $
208
billion as of March 29, 2026 and $
208
billion as of December 31, 2025.
28
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Selected Statement of Operations Information
The following provides selected information by reportable segment:
Three Months Ended
Total Revenues Earnings (a) Depreciation and Amortization (b)
(MILLIONS) March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025
Reportable Segment:
Biopharma (c) $ 14,161 $ 13,441 $ 6,838 $ 7,069 $ 348 $ 331
Other business activities (d) 289 273 ( 1,668 ) ( 1,384 ) 78 74
Reconciling Items:
Amortization of intangible assets ( 1,183 ) ( 1,211 ) 1,183 1,211
Acquisition-related items ( 504 ) ( 282 ) — ( 1 )
Certain significant items (e) ( 312 ) ( 1,407 ) 3 4
$ 14,451 $ 13,715 $ 3,170 $ 2,785 $ 1,613 $ 1,618

(a)
Income from continuing operations before provision/
(
benefit
)
for taxes on income.
Effective in the third quarter of 2025, certain expenses for corporate affairs, which were previously reported in the operating results of corporate enabling functions, are reported in the operating results of our Biopharma reportable segment. In connection with this reporting change, we reclassified S
elling, informational and administrative expenses
of approximately $
36
million in the first quarter of 2025 from Other business activities to Biopharma to conform to the current period presentation.
(b)
Certain production facilities are shared. Depreciation is allocated based on estimates of physical production.
(c)
Biopharma’s earnings include dividend income from our investment in ViiV of $
82
 million in the first quarter of 2026 and $
39
 million in the first quarter of 2025 recorded in
Other
(in
come
)
/deductions––net.
Biopharma’s earnings in the first quarter of 2025 also reflected a credit to
Cost of Sales
representing a favorable revision of our estimate of accrued royalties.
(d)
Other business activities include revenues and costs associated with PC1 and our former operating segment, Pfizer Ignite, as well as costs that we do not allocate to our operating segments, per above.
(e)
Earnings in the first quarter of 2025 included, among other items restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $
666
 million (primarily recorded in
Restructuring charges and certain acquisition-related costs
). See
Note 3
.
The following provides Biopharma reportable segment information regularly provided to the CODM:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Biopharma reportable segment:
Biopharma total revenues $ 14,161 $ 13,441
Less:
Cost of sales 3,034 2,314
Selling, informational and administrative expenses 2,131 2,186
Research and development expenses 2,137 1,941
Acquired in-process research and development expenses 137 9
Other (income)/deductions––net ( 116 ) ( 78 )
Biopharma earnings $ 6,838 $ 7,069

B. Geographic Information
The following summarizes revenues by geographic area:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
United States $ 8,731 $ 8,374
International:
Developed Markets 3,426 3,178
Emerging Markets 2,293 2,163
Total revenues $ 14,451 $ 13,715

29
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

C. Other Revenue Information
Significant Revenues by Product
The following provides detailed revenue information for several of our major products:
(MILLIONS) Three Months Ended
PRODUCT PRIMARY INDICATION OR CLASS March 29, 2026 March 30, 2025
TOTAL REVENUES $ 14,451 $ 13,715
GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA) (a) $ 14,161 $ 13,441
Primary Care $ 5,542 $ 5,692
Eliquis (b) Nonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism 2,166 1,923
Prevnar family Active immunization to prevent pneumonia, invasive disease and otitis media caused by Streptococcus pneumoniae 1,690 1,660
Nurtec ODT/Vydura Acute treatment of migraine and prevention of episodic migraine 353 248
Comirnaty Active immunization to prevent COVID-19 232 565
Paxlovid COVID-19 in certain high-risk patients 186 491
Abrysvo Active immunization to prevent RSV infection 180 131
FSME-IMMUN/TicoVac Active immunization to prevent tick-borne encephalitis disease 81 63
All other Primary Care Various 654 609
Oncology $ 3,826 $ 3,494
Ibrance HR-positive/HER2-negative metastatic breast cancer 1,008 977
Padcev Locally advanced or metastatic urothelial cancer and cisplatin-ineligible/decline muscle invasive bladder cancer (MIBC) 591 426
Xtandi (c) mCRPC, nmCRPC, mCSPC, nmCSPC 444 458
Lorbrena ALK-positive metastatic NSCLC 305 222
Inlyta Advanced renal cell carcinoma 214 219
Adcetris (d) Certain lymphomas including classical Hodgkin lymphoma, T-cell lymphoma and relapsed/refractory diffuse large B-cell lymphoma 190 218
Braftovi/Mektovi Metastatic melanoma in patients with a BRAF V600E/K mutation and for metastatic NSCLC in patients with a BRAF V600E mutation; and, for Braftovi for the treatment of BRAF V600E - mutant mCRC, in combination with Erbitux ® (cetuximab) (e) (after prior therapy) or cetuximab and fluorouracil-based chemotherapy 174 136
Bosulif Philadelphia chromosome–positive chronic myelogenous leukemia 129 151
Tukysa Unresectable or metastatic HER2-positive breast cancer; RAS wild-type, HER2-positive unresectable or metastatic colorectal cancer 122 102
Orgovyx (f) Advanced prostate cancer 109 76
Elrexfio Relapsed or refractory multiple myeloma 80 60
Talzenna Treatment of BRCA gene-mutated, HER2-negative, inoperable or recurrent breast cancer; and, in combination with Xtandi (enzalutamide), of adult patients with HRR gene-mutated mCRPC 50 40
Tivdak Recurrent or mCC with disease progression on or after chemotherapy 33 33
All other Oncology Various 376 377
Specialty Care $ 2,939 $ 2,616
Vyndaqel family ATTR-CM and polyneuropathy 1,602 1,486
Xeljanz RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis 180 128
Zavicefta (Outside the U.S. and Canada) Bacterial infections 150 135
Enbrel (Outside the U.S. and Canada) RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis 138 140
Octagam Primary humoral immunodeficiency, chronic immune thrombocytopenic purpura in adults, and dermatomyositis in adults 122 88
Genotropin Replacement of human growth hormone 93 95
Cibinqo Atopic dermatitis 76 58
All other Specialty Care Various 579 486
Hospital and Biosimilars (a) $ 1,854 $ 1,639
Oncology biosimilars (g) Various 409 264
Sulperazon (Outside the U.S. and Canada) Bacterial infections 199 164
Inflectra Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis 182 153
Zithromax Bacterial infections 112 158
All other Hospital and Biosimilars Various 953 901
PFIZER CENTREONE (h) $ 289 $ 273

30
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

(MILLIONS) Three Months Ended
PRODUCT PRIMARY INDICATION OR CLASS March 29, 2026 March 30, 2025
BIOPHARMA (a) $ 14,161 $ 13,441
PFIZER U.S. COMMERCIAL DIVISION 7,686 7,572
PFIZER INTERNATIONAL COMMERCIAL DIVISION 5,233 4,849
GLOBAL HOSPITAL AND BIOSIMILARS DIVISION (i) 1,242 1,020
Total Alliance revenues included above $ 2,339 $ 2,113
Total Royalty revenues included above $ 396 $ 308

(a)
In the first quarter of 2026, we made changes in our commercial structure, which included the transition of certain off-patent branded and generic sterile injectables and biosimilars primarily from the Specialty Care and Oncology product portfolios to a new Hospital and Biosimilars product portfolio within our Biopharma reportable segment. See
Note 13A
above. We reclassified prior period amounts to conform to the current period presentation
.
(b)
Reflects alliance revenues and royalty revenues.
(c)
Primarily reflects alliance revenues and royalty revenues.
(d)
Reflects product revenues and royalty revenues.
(e)
Erbitux
®
is a registered trademark of ImClone LLC.
(f)
Reflects alliance revenues.
(g)
Biosimilars are highly similar versions of approved and authorized biological medicines. Oncology biosimilars primarily include Ruxience, Zirabev, Retacrit, Trazimera and Nivestym.
(h)
PC1 includes revenues from our contract manufacturing and our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with legacy Pfizer businesses/partnerships. Also includes revenues associated with the wind-down of our former Pfizer Ignite operating segment, which were not material in both periods presented. We reclassified prior period amounts to conform to the current period presentation.
(i)
See
Note 13A
above.
Remaining Performance Obligations––
Contracted revenue expected to be recognized from remaining performance obligations for firm orders in long-term contracts to supply Comirnaty and Paxlovid to our customers totaled approximately $
2.1
 billion and $
948
million, respectively, as of March 29, 2026, which includes amounts received in advance and deferred, as well as amounts that will be invoiced as we deliver these products to our customers in future periods. Of these amounts, current contract terms provide for expected delivery of product with contracted revenue primarily from 2026 through 2028, the timing of which may be renegotiated. Remaining performance obligations are based on foreign exchange rates as of the end of our fiscal first quarter of 2026 and exclude arrangements with an original expected contract duration of less than one year. Remaining performance obligations associated with contracts for other products and services were not significant as of March 29, 2026 or December 31, 2025.
Deferred Revenues––
Our deferred revenues primarily relate to advance payments received or receivable from various government or government sponsored customers for supply of Paxlovid and Comirnaty. The deferred revenues related to Paxlovid and Comirnaty totaled $
1.5
billion as of March 29, 2026, with $
646
million and $
816
million recorded in current liabilities and noncurrent liabilities, respectively. The deferred revenues related to Paxlovid and Comirnaty totaled $
1.5
billion as of December 31, 2025, with $
689
million and $
826
million recorded in current liabilities and noncurrent liabilities, respectively. The activity in Paxlovid and Comirnaty deferred revenues during the first three months of 2026 was primarily amounts recognized in
Product revenues
as we delivered the products to our customers. During the first quarter of 2026, we recognized revenue of approximately $
58
million that was included in the balance of Comirnaty and Paxlovid deferred revenues as of December 31, 2025. The Paxlovid and Comirnaty deferred revenues as of March 29, 2026 will be recognized in
Product revenues
proportionately as we transfer control of the products to our customers and satisfy our performance obligations under the contracts, with the amounts included in current liabilities expected to be recognized in
Product revenues
within the next 12 months, and the amounts included in noncurrent liabilities expected to be recognized in
Product revenues
primarily from 2027 through 2028. Deferred revenues associated with contracts for other products were not significant as of March 29, 2026 or December 31, 2025.
31
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
GENERAL
The following MD&A is intended to assist the reader in understanding our financial condition and results of operations, including an evaluation of the amounts and certainty of cash flows from operations and from outside sources, and is provided as a supplement to and should be read in conjunction with the condensed consolidated financial statements and related notes in
Item 1. Financial Statements

in this Form 10-Q.
References to operational variances pertain to period-over-period changes that exclude the impact of foreign exchange rates. Although foreign exchange rate changes are part of our business, they are not within our control and because they can mask positive or negative trends in the business, we believe presenting operational variances excluding these foreign exchange changes provides useful information to evaluate our results.
OVERVIEW OF OUR PERFORMANCE, OPERATING AND GLOBAL ECONOMIC ENVIRONMENT
Our Business
––Pfizer Inc. is a research-based, global biopharmaceutical company. We apply science and our global resources to bring therapies to people that extend and significantly improve their lives through the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide.
Segments
––Beginning in the first quarter of 2026, we manage our commercial operations through a global structure consisting of two operating segments: Biopharma and PC1. Biopharma is the only reportable segment. See
Note 13A
.
For additional information about our business, strategy and operating environment, see the
Item 1. Business
section and the
Overview of Our Performance, Operating Environment, Strategy and Outlook
section within MD&A of our 2025 Form 10-K.
Our Business Development Initiatives
––We are committed to strategically capitalizing on growth opportunities, primarily by advancing our own product pipeline and maximizing the value of our existing products, but also through various business development activities. For a description of the more significant recent transactions through February 26, 2026, the filing date of our 2025 Form 10-K, see
Note 2
in our 2025 Form 10-K. See
Note 2

for a discussion of our acquisition of Metsera in November 2025 and other recent business development initiatives.
Our First Quarter 2026 Performance
Total Revenues
––
Total revenues
increased $736 million, or 5%, in the first quarter of 2026 to $14.5 billion from $13.7 billion in the first quarter of 2025, reflecting an operational increase of $304 million, or 2%, as well as a favorable impact of foreign exchange of $431 million, or 3%. The operational increase was primarily driven by an increase in revenues for Padcev, Eliquis, Oncology biosimilars, Nurtec ODT/Vydura and several other products across categories, partially offset primarily by a decline in COVID-19 product revenues. Excluding contributions from Comirnaty and Paxlovid,
Total revenues
increased

7% operationally.
See the
Total Revenues by Geography
and
Total Revenues––Selected Product Discussion
sections within MD&A for more information, including a discussion of key drivers of our revenue performance for certain products.
Income from Continuing Operations Before Provision/(Benefit) for Taxes on Income
––The increase in
Income from continuing operations before provision/(benefit) for taxes on income
of $386 million to $3.2 billion in the first quarter of 2026 from $2.8 billion in the first quarter of 2025, was primarily due to (i) higher revenues and (ii) a decrease in
Restructuring charges and certain acquisition-related costs,
partially offset by (iii) increases in
Cost of sales
and
Research and development expenses.
See

the

Analysis of the Condensed Consolidated Statements of Operations
section within MD&A and
Notes

3
and
4
. For information on our tax provision and effective tax rate, see the
Provision/
(
Benefit
)
for Taxes on
Income
section within MD&A and
Note 5
.
Our Operating Environment
––We, like other businesses in our industry, are subject to certain industry-specific challenges. These include, among others, the topics listed below. See also the
Item 1. Business––Government Regulation and Price Constraints
and
Item 1A. Risk Factors
sections,

and the
Overview of Our Performance, Operating Environment, Strategy and Outlook
––
Our Operating Environment
section of the MD&A

of our 2025 Form 10-K.
Intellectual Property Rights and Collaboration/Licensing Rights
––The loss, expiration or invalidation of intellectual property rights, patent litigation settlements and judgments, and the expiration of co-promotion and licensing rights can have a material adverse effect on our revenues. We anticipate a significant reduction of revenue from patent-based or regulatory exclusivity expiries in 2026 through 2030 as several of our in-line products experience these expirations, with the rate of the reduction of revenues from patent-based or regulatory exclusivity expiries expected to significantly accelerate over the next few years. In
32
2026, we continue to expect an unfavorable revenue impact from patent-based or regulatory exclusivity expiries of approximately $1.5 billion.
For additional information on patent rights we consider most significant to our business as a whole, including U.S., major Europe and Japan basic product patent expiration years, see the
Item 1. Business––Patents and Other Intellectual Property Rights
section of our 2025 Form 10-K. For a discussion of recent developments with respect to patent litigation involving certain of our products, see
Note 12A1
.
Regulatory Environment/Pricing and Access––Government and Other Payor Group Pressures
––Pricing and access pressures from governments globally, as well as private third-party payors in the U.S., continue to impact our global operations. With respect to the U.S., we expect to see continued focus by the U.S. government and states on regulating drug pricing and access to medicine, including but not limited to, international reference pricing, including Most-Favored-Nation (MFN) drug pricing. 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 which became effective for Eliquis on January 1, 2026. Negotiated prices for Ibrance and Xtandi are expected to follow in 2027, with Xeljanz effective in 2028. The IRA also made significant changes to the Medicare Part D benefit design (IRA Medicare Part D Redesign), which took effect beginning in 2025. We do not expect a material, incremental impact from the IRA Medicare Part D Redesign in 2026 versus the baseline set in 2025. In addition, changes to the Medicaid Drug Rebate Program or the 340B Program, including legal or legislative developments at the federal or state level with respect to the 340B Program, could have a material impact on our business. See the
Item 1. Business
––
Pricing Pressures and Managed Care Organizations
and ––
Government Regulation and Price Constraints
and the
Item 1A. Risk Factors––Pricing and Reimbursement
sections, and the
Overview of Our Performance, Operating Environment, Strategy and Outlook––Our Operating Environment
section of the MD&A of our 2025 Form 10-K
.
Policy/Regulatory Environment
––New and potential policy, regulatory or other changes from the U.S. Presidential administration, Congress and states, including, among others, increased, decreased, withdrawn or new regulatory requirements, including changes in requirements for licensure, changes, delays or failure to receive recommendations, reimbursement and regulatory approvals and coverage for our vaccines and medicines could have a material adverse effect on our business, earnings, cash flows, liquidity and financial guidance.
Product Supply
––We periodically encounter supply delays, disruptions and shortages, including due to voluntary product recalls and natural or man-made disasters.
We have not seen a significant disruption of our supply chain in the first three 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. We continue to monitor potential supply chain impacts from geopolitical and trade developments. We do not anticipate the availability of raw materials to have a significant impact on our operations in 2026, but are monitoring potential supply chain disruptions as a result of ongoing geopolitical and trade negotiations, which could, among other things, impact costs. For information on risks related to product manufacturing, see the
Item 1A. Risk Factors––Product Manufacturing, Sales and Marketing Risks
section of our 2025 Form 10-K.
The Global Economic Environment
––In addition to the industry-specific factors discussed above, we, like other businesses of our size and global extent of activities, are exposed to economic cycles as well as broader geopolitical and regulatory developments. See the
Item 1A. Risk Factors—Global Operations
section of our 2025 Form 10-K, as well as the
Overview of Our Performance, Operating Environment, Strategy and Outlook
––
The Global Economic Environment
section of the MD&A of our 2025 Form 10-K.
Global Trade Environment
––Issued or future executive orders or other new or changes in laws, regulations or policies regarding tariffs or other trade or foreign policy, could have a material adverse effect on our business, earnings, cash flow, liquidity and financial guidance. While the U.S. Supreme Court’s February 2026 decision related to executive authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA) did not have a material impact on our consolidated financial statements, the regulatory landscape continues to evolve. Specifically, on April 2, 2026, the U.S. Government announced Section 232 tariffs on imported patented pharmaceuticals and their ingredients, up to a 100% duty to address national security concerns regarding supply chain reliance. These measures, featuring exemptions for commitments to onshore and invest in U.S. manufacturing, are set to phase in on July 31, 2026, and the application to Pfizer is subject to the final negotiation of our tariff agreement with the U.S. Government. We will continue to monitor developments and any potential impacts on our future financial results and business. For additional information on risks related to our global operations and changes in laws, see the
Item 1A. Risk Factors—Global Operations
and ––
Changes in Laws and Accounting Standards
sections of our 2025 Form 10-K.
33
SIGNIFICANT ACCOUNTING POLICIES AND APPLICATION OF CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
For a description of our significant accounting policies, see
Note 1
in our 2025 Form 10-K
.
Of these policies, the following are considered critical to an understanding of our consolidated financial statements as they require the application of the most subjective and the most complex judgments: Acquisitions (
Note 1D
); Fair Value (
Note 1E
); Revenues (
Note 1G
); Long-Lived Assets (
Note 1M
); Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives (
Note 1N
); Income Taxes (
Note 1Q
); Pension and Postretirement Benefit Plans (
Note 1R
); and Legal and Environmental Contingencies (
Note 1S
).
For a discussion about the critical accounting estimates and assumptions impacting our consolidated financial statements, see the
Significant Accounting Policies and Application of Critical Accounting Estimates and Assumptions
section within MD&A of our 2025 Form 10-K. See also
Note 1C
in our 2025 Form 10-K for a discussion about the risks associated with estimates and assumptions.
ANALYSIS OF THE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Total Revenues by Geography
The following presents worldwide Total revenues by geography:
Three Months Ended
Worldwide U.S. International World-wide U.S. Inter-national
(MILLIONS) March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 % Change
Operating segments:
Biopharma $ 14,161 $ 13,441 $ 8,626 $ 8,285 $ 5,535 $ 5,156 5 4 7
Pfizer CentreOne (a) 289 273 105 89 184 185 6 18 —
Total revenues $ 14,451 $ 13,715 $ 8,731 $ 8,374 $ 5,719 $ 5,341 5 4 7

(a)
Includes revenues associated with the wind-down of our former Pfizer Ignite operating segment, which were not material in both periods presented. We reclassified prior period amounts to conform to the current period presentation.
Product Revenue Deductions
––Our gross product revenues are subject to a variety of deductions, which generally are estimated and recorded in the same period that the revenues are recognized. These deductions represent estimates of the related obligations and, as such, knowledge and judgment are required when estimating the impact of these product revenue deductions on gross sales for a reporting period. Historically, adjustments to these estimates to reflect actual results or updated expectations, have not been material to our overall business and generally have been less than 1% of revenues. Product-specific rebates, however, can have a significant impact on year-over-year individual product revenue growth trends.
The following presents information about product revenue deductions:
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025
Medicare rebates $ 999 $ 1,068
Medicaid and related state program rebates 358 397
Performance-based contract rebates 1,663 1,612
Chargebacks 3,201 2,939
Sales allowances 1,713 1,781
Sales returns and cash discounts 325 335
Total $ 8,258 $ 8,133

Product revenue deductions are primarily a function of product sales volume, mix of products sold, contractual or legislative discounts and rebates.
For information on our accruals for product revenue deductions, including the balance sheet classification of these accruals, see
Note 1B
.
34
Total Revenues––Selected Product Discussion
Biopharma
(MILLIONS) Revenue % Change
Product Global Revenues Region March 29, 2026 March 30, 2025 Total Oper. Operational Results Commentary
Eliquis $2,166 Up 8% (operationally) U.S. $ 1,435 $ 1,299 10 Growth primarily driven by higher demand globally, partially offset by declines due to generic entry and price erosion in certain international markets.
Int’l. 731 624 17 4
Worldwide $ 2,166 $ 1,923 13 8
Prevnar family $1,690 Down 1% (operationally) U.S. $ 1,053 $ 1,170 (10) Decline 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 as well as favorable timing of deliveries.
Int’l. 637 491 30 21
Worldwide $ 1,690 $ 1,660 2 (1)
Vyndaqel family $1,602 Up 4% (operationally) U.S. $ 911 $ 986 (8) Growth primarily driven by: • strong demand with continuing uptake in patient diagnosis across international markets, as well as improved access in certain international markets, partially offset by: • decline in the U.S. primarily due to net price erosion as a result of new payer contracts, partially offset by continued market expansion.
Int’l. 691 499 38 26
Worldwide $ 1,602 $ 1,486 8 4
Ibrance $1,008 Down 1% (operationally) U.S. $ 632 $ 659 (4) Decline primarily driven by lower net price in the U.S. as well as unfavorable buying patterns, partially offset by higher demand in the U.S., a favorable adjustment of rebate accruals for international markets related to prior periods and timing of shipments in certain international markets.
Int’l. 376 318 18 7
Worldwide $ 1,008 $ 977 3 (1)
Padcev $591 Up 39% (operationally) U.S. $ 585 $ 419 40 Growth primarily driven by increased market share in first-line locally advanced or metastatic urothelial cancer (la/mUC), as well as contribution from launch momentum in the cisplatin-ineligible indication for muscle-invasive bladder cancer.
Int’l. 7 7 (7) (13)
Worldwide $ 591 $ 426 39 39
Xtandi $444 Down 3% (operationally) U.S. $ 444 $ 458 (3) Decline mainly driven by lower net price in the U.S., partially offset by higher demand.
Int’l. — — — —
Worldwide $ 444 $ 458 (3) (3)
Nurtec ODT/Vydura $353 Up 41% (operationally) U.S. $ 312 $ 228 37 Growth primarily driven by strong demand and one-time net price favorability in the U.S., as well as launch uptake in certain international markets.
Int’l. 41 20 99 87
Worldwide $ 353 $ 248 42 41
Lorbrena $305 Up 32% (operationally) U.S. $ 116 $ 92 26 Growth primarily driven by increased patient share in the first-line ALK+ metastatic NSCLC treatment setting in the U.S., China and certain other international markets.
Int’l. 190 130 46 37
Worldwide $ 305 $ 222 37 32
Comirnaty $232 Down 59% (operationally) U.S. $ 131 $ 229 (43) Decline primarily driven by lower contractual deliveries in certain international markets and a lower favorable adjustment to the returns provision, as well as lower utilization in the U.S. primarily resulting from a narrower recommendation for vaccination.
Int’l. 101 335 (70) (71)
Worldwide $ 232 $ 565 (59) (59)
Paxlovid $186 Down 63% (operationally) U.S. $ 135 $ 347 (61) Decline primarily driven by lower COVID-19 infections across U.S. and international markets and lower government purchases in certain international markets.
Int’l. 51 145 (65) (67)
Worldwide $ 186 $ 491 (62) (63)
Abrysvo $180 Up 31% (operationally) U.S. $ 84 $ 63 33 Growth primarily driven by: • a lower returns provision compared to the first quarter of 2025, partially offset by lower vaccination rates in the U.S; and • launch uptake in certain international markets, partially offset by: • unfavorable timing of deliveries for the maternal indication in certain international markets.
Int’l. 96 68 41 30
Worldwide $ 180 $ 131 37 31

    
35
Pfizer CentreOne
(MILLIONS) Revenue % Change
Operating Segment Global Revenues Region March 29, 2026 March 30, 2025 Total Oper. Operational Results Commentary
PC1 $289 Up 1% (operationally) U.S. $ 105 $ 89 18 Growth driven by higher manufacturing of third-party products under manufacturing and supply agreements and higher active pharmaceutical ingredient sales.
Int’l. 184 185 — (7)
Worldwide $ 289 $ 273 6 1

See the
Item 1. Business
—
Patents and Other Intellectual Property Rights
section of our 2025 Form 10-K for information regarding the expiration of various patent rights,
Note 12
for a discussion of recent developments concerning patent and product litigation relating to certain of the products discussed above and
Note 13C
for the primary indications or class of the selected products discussed above.
Costs and Expenses
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025 % Change
Cost of sales $ 3,548 $ 2,845 25
Percentage of Total revenues 24.6 % 20.7 %
Selling, informational and administrative expenses 2,961 3,031 (2)
Research and development expenses 2,490 2,203 13
Acquired in-process research and development expenses 137 9 *
Amortization of intangible assets 1,183 1,211 (2)
Restructuring charges and certain acquisition-related costs 100 678 (85)
Other (income)/deductions—net 861 953 (10)

First Quarter of 2026 vs. First Quarter of 2025
Cost of Sales
Cost of sales
increased $702 million in the first quarter of 2026, primarily due to the non-recurrence of a favorable revision of our estimate of accrued royalties in the first quarter of 2025 as well as a $285 million unfavorable impact of foreign exchange.
The increase in
Cost of sales
as a percentage of revenues in the first quarter of 2026 was primarily due to the factors mentioned above.
Certain of our vaccines, including Comirnaty, are subject to seasonality of demand, with a greater portion of revenues and related cost of sales anticipated in the fall and winter seasons.
Selling, Informational and Administrative Expenses
Selling, informational and administrative
expenses decreased $70 million in the first quarter of 2026, primarily reflecting:
•
a decrease of $100 million in marketing and promotional spend on various products from more targeted investments and ongoing productivity improvements; and
•
lower spending of $60 million in corporate enabling functions,
partially offset by:
•
a $60 million unfavorable impact of foreign exchange.
Research and Development Expenses
Research and development expenses
increased $287 million in the first quarter of 2026, driven primarily by an increase in spending of $180 million in certain oncology and obesity product candidates.
Acquired In-Process Research and Development Expenses
Acquired in-process research and development expenses
increased $128 million in the first quarter of 2026, reflecting upfront and milestone payments on certain in-licensing agreements.
Restructuring Charges and Other Costs Associated with Acquisitions and Cost-Reduction/Productivity Initiatives
Realigning Our Cost Base Program
––
This program is expected to deliver total net cost savings of approximately $5.7 billion through 2026. The total net cost savings are composed of net cost savings of $5.1 billion achieved through 2025, and the remaining anticipated savings of $600 million, primarily in SI&A, which are expected to be achieved by the end of 2026. In addition, we achieved cost savings of approximately $500 million from our pipeline focus and optimization initiatives including the expansion of our digital capabilities, with the savings expected to be reinvested in R&D programs by the end of 2026.
36
Manufacturing Optimization Program
––
The first phase of this multi-phased program is on track to deliver approximately $1.5 billion in net cost savings by the end of 2027, with approximately $1.3 billion of these net cost savings expected to be realized by the end of 2026.
Certain qualifying costs for these programs in all periods since inception were recorded and reflected as Certain Significant Items and excluded from our non-GAAP measure of Adjusted Income. See the
Non-GAAP Financial Measure: Adjusted Income
section within MD&A.
For a description of our programs, as well as the anticipated and actual costs, see
Not
e
s

3A

and

3B
.

The program savings discussed above may be rounded and represent approximations. In addition to these programs, we continuously monitor our operations for cost reduction and/or productivity opportunities, especially in light of patent-based and regulatory exclusivity expiries as well as the expiration of collaborative arrangements for various products. Long-term improvement in gross margin will remain a key focus for the Company over the next few years.
Metsera acquisition
––
In connection with our acquisition of Metsera, we are focusing our efforts on achieving an appropriate cost structure for the combined company. We expect to generate approximately $600 million of annual cost synergies, to be achieved by the end of 2026. The one-time costs to generate these synergies are expected to be approximately $700 million, incurred primarily from 2025 through 2027.
Other (Income)/Deductions—Net
The favorable period-over-period change of $92 million in the first quarter of 2026 was primarily driven by (i) lower net losses on equity securities, and (ii) the non-recurrence of intangible asset impairment charges recorded in the first quarter of 2025, partially offset by (iii) increases in fair value of our contingent consideration liabilities and (iv) lower net periodic benefit credits associated with pension and postretirement plans. See
Note
s
4

and

7A
.
Provision/(Benefit) for Taxes on Income
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025 % Change
Provision/ ( benefit ) for taxes on income $ 461 $ (189) *
Effective tax rate on continuing operations 14.6 % (6.8) %

For information about our effective tax rate and the events and circumstances contributing to the changes between periods, as well as details about discrete elements that impacted our tax provisions, see
Note 5
.
See
Note 5A
in our 2025 Form 10-K for information on our income taxes paid (net of refunds received).
Changes in Tax Laws––
Many countries outside the U.S. have enacted legislation for global minimum taxation resulting from the Organization for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting “Pillar 2” project. The provisions are generally effective for Pfizer since 2024, though significant details and guidance around the provisions are still pending. Income tax expense could be impacted as the legislation becomes effective in countries in which we do business, and such impact could be material to our results of operations. We continue to monitor pending OECD guidance and legislation enactment and implementation by individual countries.
On July 4, 2025, the OBBBA was enacted into law in the U.S. The OBBBA includes significant tax provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act and modifications to the U.S. international tax framework. Among the favorable business provisions are the permanent expensing for domestic R&D costs, permanent bonus depreciation, full expensing of qualified production property, and the reduction of the tax rate applicable to foreign earnings as GILTI (now NCTI) effective in fiscal years 2026 and thereafter from 13.125% to 12.6%. The legislation includes various effective dates, with certain provisions effective in 2025 and the rest in 2026.

We expect further guidance may be issued by the U.S. government with respect to certain OBBBA tax provisions.
See the
Provision/(Benefit) for Taxes on Income
section within the MD&A of our 2025 Form 10-K for more information.
PRODUCT DEVELOPMENTS
A comprehensive update of Pfizer’s development pipeline was published as of May 5, 2026 and is available at
www.pfizer.com/science/drug-product-pipeline
. It includes an overview of our research and a list of compounds in development with targeted indication and phase of development, as well as mechanism of action for some candidates in Phase 1 and all candidates from Phase 2 through registration.
This section provides information as of the date of this report about significant marketing application-related regulatory actions by, and filings submitted to and accepted by the FDA and the EMA since the filing of our Annual Report on Form 10-K for the year ended December 31, 2025.
37
Approvals:
PRODUCT INDICATION DATE/MARKET
Veppanu (vepdegestrant) (a) Treatment of adults with ER+/HER2-, ESR1-mutated advanced or metastatic breast cancer, as detected by an FDA-authorized test, with disease progression following at least one line of endocrine therapy May 2026 (U.S.)

(a)
Vepdegestrant is being developed in collaboration with Arvinas, Inc. In September 2025, Arvinas and Pfizer jointly agreed to out-license the commercialization rights to vepdegestrant to a third party. Together, the companies are on track to select a partner with the capabilities and expertise to maximize the commercial potential of vepdegestrant.
Regulatory Filings:

PRODUCT PROPOSED INDICATION DATE^/MARKET
Tukysa (tucatinib) Combination with trastuzumab and pertuzumab for maintenance treatment of adult patients with unresectable locally advanced or metastatic HER2+ breast cancer February 2026 (U.S.) April 2026 (EU)
Padcev (enfortumab vedotin-ejfv) (a) Combination with pembrolizumab as perioperative treatment for adult patients with muscle invasive bladder cancer April 2026 (U.S.)

^
    For the U.S., the filing date is the date on which the FDA accepted our submission. For the EU, the filing date is the date on which the EMA validated our submission.
(a)
Padcev is being jointly developed and commercialized with Astellas in the U.S. Outside the U.S., we have commercialization rights in all countries in North and South America, and Astellas has commercialization rights in the rest of the world.
The following provides updates in new drug candidates in late-stage development since the filing of our Annual Report on Form 10-K for the year-ended December 31, 2025:
CANDIDATE PROPOSED DISEASE AREA
PF-07872412 Pneumococcal disease - Pediatrics

In December 2024, the FDA issued a partial clinical hold for osivelotor, which prohibited Pfizer from enrolling new participants into osivelotor clinical studies. In 2025, the FDA concluded that initiation of osivelotor studies and enrollment may proceed outside of sub-Saharan Africa and for participants who have not relocated from sub-Saharan Africa. Enrollment of new participants began in the first quarter of 2026.
For additional information about our R&D organization, see
Note 13
and the
Item 1. Business
—
Research and Development
section of our 2025 Form 10-K. For additional information regarding certain collaboration arrangements, see the
Item 1. Business
—
Collaboration and Co-Promotion Agreements
section of our

2025 Form 10-K. For additional information about additional indications and new drug candidates in late-stage development and filings pending with certain regulatory authorities, see the
Product Developments
section within MD&A of our 2025 Form 10-K.
NON-GAAP FINANCIAL MEASURE: ADJUSTED INCOME
Adjusted income is an alternative measure of performance used by management to evaluate our overall performance as a supplement to our GAAP Reported performance measures. As such, we believe that investors’ understanding of our performance is enhanced by disclosing this measure. We use Adjusted income, certain components of Adjusted income and Adjusted diluted EPS to present the results of our major operations––the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide––prior to considering certain income statement elements as follows:
38
Measure Definition Relevance of Metrics to Our Business Performance
Adjusted income Net income attributable to Pfizer Inc. common shareholders (a) before the impact of amortization of intangible assets, certain acquisition-related items, discontinued operations and certain significant items • Provides investors useful information to: ◦ evaluate the normal recurring operational activities, and their components, on a comparable year-over-year basis ◦ assist in modeling expected future performance on a normalized basis • Provides investors insight into the way we manage our budgeting and forecasting, how we evaluate and manage our recurring operations and how we reward and compensate our senior management (b)
Adjusted cost of sales, Adjusted selling, informational and administrative expenses, Adjusted research and development expenses and Adjusted other (income)/deductions –– net Cost of sales, Selling, informational and administrative expenses, Research and development expenses and Other ( income ) /deductions––net (a) , each before the impact of amortization of intangible assets, certain acquisition-related items, discontinued operations and certain significant items, which are components of the Adjusted income measure
Adjusted diluted EPS EPS attributable to Pfizer Inc. common shareholders––diluted (a) before the impact of amortization of intangible assets, certain acquisition-related items, discontinued operations and certain significant items

(a)
Most directly comparable GAAP measure.
(b)
The short-term incentive plans for substantially all non-sales-force employees worldwide are funded from a pool based on our performance, measured in significant part versus three budgeted financial metrics, as well as performance against certain of our non-financial pipeline metrics, and may be further modified by our Compensation Committee’s assessment of other factors. One of the three financial metrics is Adjusted income (as defined for annual incentive compensation purposes), which accounts for 40% of the bonus pool funding tied to financial performance. 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. Additionally, the payout for performance share awards is determined in part by Adjusted diluted EPS, which is derived from Adjusted income.
Adjusted income and its components and Adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by GAAP and, therefore, are limited in their usefulness to investors. Because of their non-standardized definitions, they may not be comparable to the calculation of similar measures of other companies and are presented to permit investors to more fully understand how management assesses performance. A limitation of these measures is that they provide a view of our operations without including all events during a period, and do not provide a comparable view of our performance to peers. These measures are not, and should not be viewed as, substitutes for their most directly comparable GAAP measures of
Net income attributable to Pfizer Inc. common shareholders
, components of
Net income attributable to Pfizer Inc. common shareholders
and
EPS attributable to Pfizer Inc. common shareholders—diluted
, respectively.
We also recognize that, as internal measures of performance, these measures have limitations, and we do not restrict our performance-management process solely to these measures. We also use other tools designed to achieve the highest levels of performance. For example, our R&D organization has productivity targets, upon which its effectiveness is measured. In addition, total shareholder return, both on an absolute basis and relative to a publicly traded pharmaceutical index, plays a significant role in determining payouts under certain of our incentive compensation plans.
Adjusted Income and Adjusted Diluted EPS
Amortization of Intangible Assets
—Adjusted income excludes all amortization of intangible assets.
Acquisition-Related Items
—Adjusted income excludes certain acquisition-related items, which are composed of transaction, integration, restructuring charges and additional depreciation costs for business combinations because these costs are unique to each transaction and represent costs that were incurred to restructure and integrate businesses as a result of an acquisition. We have made no adjustments for resulting synergies. Acquisition-related items may include purchase accounting impacts such as the incremental charge to cost of sales from the sale of acquired inventory that was written up to fair value, depreciation related to the increase/decrease in fair value of acquired fixed assets, amortization related to the increase in fair value of acquired debt, and the fair value changes for contingent consideration.
Discontinued Operations
—Adjusted income excludes the results of discontinued operations, as well as any related gains or losses on the disposal of such operations. We believe that this presentation is meaningful to investors because, while we review our product portfolio for strategic fit with our operations, we do not build or run our business with the intent to discontinue parts of our business. Restatements due to discontinued operations do not impact compensation or change the Adjusted income measure for the compensation in respect of the restated periods, but are presented for consistency across all periods.
Certain Significant Items
—Adjusted income excludes certain significant items representing substantive and/or unusual items that are evaluated individually on a quantitative and qualitative basis. Certain significant items may be highly variable and
39
difficult to predict. Furthermore, in some cases it is reasonably possible that they could reoccur in future periods. For example, although major non-acquisition-related cost-reduction programs are specific to an event or goal with a defined term, we may have subsequent programs based on reorganizations of the business, cost productivity or in response to generic or biosimilar entry or economic conditions. Legal charges to resolve litigation are also related to specific cases, which are facts and circumstances specific and, in some cases, may also be the result of litigation matters at acquired companies that were inestimable, not probable or unresolved at the date of acquisition, or legal matters generally related to divested products or businesses. Gains and losses on equity securities and pension and postretirement actuarial remeasurement gains and losses have a very high degree of inherent market volatility, which we do not control and cannot predict with any level of certainty, and we do not believe including these gains and losses assists investors in understanding our business or is reflective of our core operations and business. Unusual items represent items that are not part of our ongoing business; items that, either as a result of their nature or size, we would not expect to occur as part of our normal business on a regular basis; items that would be non-recurring; or items that relate to products we no longer sell. See the
Reconciliations of GAAP Reported to Non-GAAP Adjusted information—Certain Line Items
below for a non-inclusive list of certain significant items and the
Non-GAAP Financial Measure: Adjusted Income
section within MD&A of our 2025 Form 10-K.
Reconciliations of GAAP Reported to Non-GAAP Adjusted Information––Certain Line Items
Three Months Ended March 29, 2026
Data presented will not (in all cases) aggregate to totals. (MILLIONS, EXCEPT PER SHARE DATA) Cost of sales (a) Selling, informational and administrative expenses (a) Other (income)/deductions––net (a) Net income attributable to Pfizer Inc. common shareholders (a), (b) Earnings per common share attributable to Pfizer Inc. common shareholders––diluted
GAAP Reported $ 3,548 $ 2,961 $ 861 $ 2,687 $ 0.47
Amortization of intangible assets — — — 1,183
Acquisition-related items (118) (6) (300) 504
Discontinued operations — — — 13
Certain significant items:
Restructuring charges/credits, inventory write-offs, implementation costs and additional depreciation—asset restructuring (c) (18) (36) — 126
Gains/losses on equity securities — — (9) 9
Actuarial valuation and other pension and postretirement plan gains/losses — — (11) 11
Other (e) (5) (4) (153) 166
Income tax provision—non-GAAP items (410)
Non-GAAP Adjusted $ 3,406 $ 2,915 $ 388 $ 4,290 $ 0.75

Three Months Ended March 30, 2025
Data presented will not (in all cases) aggregate to totals. (MILLIONS, EXCEPT PER SHARE DATA) Cost of sales (a) Selling, informational and administrative expenses (a) Other (income)/deductions––net (a) Net income attributable to Pfizer Inc. common shareholders (a), (b) Earnings per common share attributable to Pfizer Inc. common shareholders––diluted
GAAP Reported $ 2,845 $ 3,031 $ 953 $ 2,967 $ 0.52
Amortization of intangible assets — — — 1,211
Acquisition-related items (206) (1) (7) 282
Certain significant items:
Restructuring charges/credits and implementation costs and additional depreciation—asset restructuring (c) (24) (6) — 666
Certain asset impairments (d) — — (224) 224
Gains/losses on equity securities — — (370) 370
Actuarial valuation and other pension and postretirement plan gains/losses — — 59 (59)
Other (e) (23) (15) (166) 207
Income tax provision—non-GAAP items (630)
Non-GAAP Adjusted $ 2,593 $ 3,010 $ 246 $ 5,237 $ 0.92

(a)
Items that reconcile GAAP Reported to non-GAAP Adjusted balances are shown pre-tax. Our effective tax rates for GAAP Reported income from continuing operations were 14.6% for the three months ended March 29, 2026 and (6.8)% for the three months ended March 30, 2025. See
Note 5
. Our effective tax rates for non-GAAP Adjusted income were 16.9% for the three months ended March 29, 2026 and 7.8% for the three months ended March 30, 2025.
(b)
Includes reconciling amounts for
Research and development expenses
that are not material to our non-GAAP consolidated results of operations.
(c)
Includes employee termination costs, asset impairments and other exit costs related to our cost-reduction and productivity initiatives not associated with acquisitions. See
Note 3
.
40
(d)
See
Note 4
.
(e)
For the three months ended March 29, 2026, the total
Other
(
income
)
/deductions––net
adjustments of

$153 million primarily include charges of $147 million for certain legal matters, primarily representing certain product liability expenses related to products discontinued and/or divested by Pfizer. For the three months ended March 30, 2025, the total
Other
(
income
)
/deductions––net
adjustments of $166 million primarily included charges of $142 million for certain legal matters, representing certain product liability and other legal expenses related to products discontinued and/or divested by Pfizer.

ANALYSIS OF THE CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
(MILLIONS) March 29, 2026 March 30, 2025 Drivers of change
Cash provided by/(used in):
Operating activities $ 2,615 $ 2,335 The change was driven mainly by the timing of receipts and payments in the ordinary course of business and a change in net income adjusted for non-cash items.
Investing activities $ 785 $ 3,274 The change was driven mainly by non-recurrence of $6.3 billion proceeds from the sale of the remaining portion of our previous investment in Haleon, partially offset by a $3.9 billion increase in net proceeds from short-term investments.
Financing activities $ (2,856) $ (5,227) The change was driven mainly by a $2.3 billion decrease in net repayments of short-term borrowings.

ANALYSIS OF FINANCIAL CONDITION, LIQUIDITY, CAPITAL RESOURCES AND MARKET RISK
We believe that with our ongoing operating cash flows, together with our financial assets, access to capital markets, revolving credit agreement, and available lines of credit, we have and will maintain the ability to meet our liquidity needs to support ongoing operations, our capital allocation objectives, and our contractual and other obligations for the foreseeable future. For information about the sources and uses of our funds and capital resources, as well as our operating cash flows, see our
Condensed Consolidated Statements of Cash Flows
,
Condensed Consolidated Balance Sheets
,
Condensed Consolidated Statements of Equity
, and the
Analysis of the Condensed Consolidated Statements of Cash Flows
section within MD&A. For information on our money market funds, available-for sale-debt securities and long-term debt, see
Note 7
.
For information about our diverse sources of funds, off-balance sheet arrangements, contractual and other obligations, global economic conditions and market risk, see the
Analysis of Financial Condition, Liquidity, Capital Resources and Market Risk
section

within MD&A of our 2025 Form 10-K. For more information on guarantees and indemnifications, see
Note 12B
.
Credit Ratings
––The cost and availability of financing are influenced by credit ratings, and an increase or decrease in our credit rating could have a beneficial or adverse effect on financing. Our long-term debt is rated high-quality by both S&P and Moody’s.
As of the date of the filing of this Form 10-Q, the following ratings have been assigned to our commercial paper and senior unsecured long-term debt:
NAME OF RATING AGENCY Pfizer Short-Term Rating Pfizer Long-Term Rating Outlook/Watch
Moody’s P-1 A2 Stable Outlook
S&P A-1 A Stable Outlook

These ratings are not recommendations to buy, sell or hold securities and the ratings are subject to revision or withdrawal at any time by the rating organizations. Each rating should be evaluated independently of any other rating.
Debt Capacity––Lines of Credit
––As of the date of the filing of this Form 10-Q, we had access to a $7.0 billion committed U.S. revolving credit facility maturing in October 2030, which may be used for general corporate purposes including to support our global commercial paper borrowings. In addition to the U.S. revolving credit facility, our lenders have provided us an additional $228 million in lines of credit, essentially all expiring within one year. All lines of credit were unused as of the date of the filing of this Form 10-Q.
Capital Allocation Framework
––Our capital allocation framework is designed to enhance long-term shareholder value and is based on three core pillars: reinvesting in the business, maintaining and, over the long term, growing our dividend, and in the future, the potential to make share repurchases after de-levering our balance sheet. Over time, we expect to continue to de-lever in a prudent manner in order to maintain a balanced capital allocation strategy.
Dividends
––In April 2026, our BOD declared a dividend of $0.43 per share, payable on June 12, 2026, to shareholders of record at the close of business on May 8, 2026.
41
Common Stock Purchases
—As of March 29, 2026, our remaining share-purchase authorization was $3.3 billion, with no repurchases in the first three months of 2026. See
Note 12
in our 2025 Form 10-K for more information on our publicly announced share-purchase plan.
Sale of Investment
—On March 31, 2026, which fell in our second fiscal quarter of 2026, Pfizer completed the exit of its 11.7% investment in ViiV and received $1.875 billion in cash proceeds.
NEW ACCOUNTING STANDARDS
Recently Issued Accounting Standards, Not Adopted as of March 29, 2026
Standard/Description Effective Date Effect on the Financial Statements
In November 2024, the FASB issued final guidance which requires disaggregated disclosures of certain categories of expenses that are included in expense line items on the face of the income statement. The disclosures are required on an annual and interim basis. The guidance also requires the total amount of selling expenses to be disclosed and, on an annual basis, the definition of selling expenses. The guidance may be applied on a prospective or a retrospective basis. 2027 for annual reports and 2028 for interim reports. Early adoption is permitted. This new guidance will result in increased disclosures in the notes to our financial statements.
In September 2025, the FASB issued final guidance to modernize the accounting for internal use software costs. The guidance requires entities to start capitalizing eligible costs when (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The guidance can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis. January 1, 2028, with early adoption permitted. We are assessing the impact but currently do not expect this new guidance to have a material impact on our consolidated financial statements.

FORWARD-LOOKING INFORMATION AND FACTORS THAT MAY AFFECT FUTURE RESULTS
This Form 10-Q contains forward-looking statements. We also provide forward-looking statements in other materials we release to the public, as well as public oral statements. Given their forward-looking nature, these statements involve substantial risks, uncertainties and potentially inaccurate assumptions.
These statements may be identified by using words such as “will,” “may,” “could,” “likely,” “ongoing,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words and terms of similar meaning or by using future dates; however, the absence of the foregoing words or expressions does not mean that a statement is not forward-looking.
We include forward-looking information in our discussion of the following, among other topics:
•
our anticipated operating and financial performance, including financial guidance and projections;
•
reorganizations, business plans, strategy, goals and prospects;
•
expectations for our product pipeline (including products from completed or anticipated acquisitions), in-line products and product candidates, including anticipated regulatory submissions, data read-outs, study starts, approvals, launches, clinical development plans, discontinuations, clinical trial results and other developing data; revenue contribution and projections; pricing and reimbursement; market dynamics, including demand, market size and utilization rates; and growth, performance, timing and duration of exclusivity and potential benefits;
•
strategic reviews, leverage and capital allocation objectives, dividends and share repurchases;
•
plans for and prospects of our acquisitions, dispositions and other business development activities, and our ability to successfully capitalize on growth opportunities and prospects;
•
sales, expenses, interest rates, foreign exchange rates and the outcome of contingencies, such as legal proceedings;
•
expectations regarding the impact of or changes to existing or new government regulations, laws or policies;
•
our ability to anticipate and respond to and our expectations regarding the impact of macroeconomic, geopolitical, health and industry trends, pandemics, acts of war and other large-scale crises; and
•
manufacturing and product supply.
In particular, forward-looking information in this Form 10-Q includes statements relating to specific future actions, performance and effects, including, among others, the expected benefits of the organizational changes to our operations; our anticipated operating and financial performance; our expectations regarding the impact of COVID-19 on our business, operations and financial results; the expected revenue, seasonality of demand and phasing for certain of our products; expected patent terms; the expected impact of patent expiries and generic and biosimilar competition; the expected pricing pressures on our products and the anticipated impact to our business; the expected impact of the IRA Medicare Part D Redesign; the benefits expected from our business development transactions, including, among others, our acquisitions of Metsera and Seagen and our in-licensing agreements with 3SBio and YaoPharma; the availability of raw materials; our efforts to mitigate the impact, and
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potential impact, of tariffs and pricing dynamics on our business and operations; our anticipated cash flows and liquidity position; the anticipated costs, savings and potential benefits from certain of our initiatives, including our enterprise-wide Realigning Our Cost Base Program and our Manufacturing Optimization Program to reduce our cost of goods sold; our voluntary agreement with the U.S. Government designed to lower drug costs for U.S. patients and to include certain Pfizer products on the TrumpRx.gov platform, Pfizer’s plans to further invest in U.S. manufacturing and potential tariff impacts, including our ability to enter into a binding tariff agreement with the U.S. Government prior to the phase-in of Section 232 tariffs; our expectations regarding product supply; our planned capital spending; our capital allocation framework; and expectations regarding legal proceedings and compliance with existing and anticipated laws and regulations.
Given their nature, we cannot assure that any potential outcome expressed in these forward-looking statements will be realized in whole or in part. Actual outcomes may vary materially from past results and those anticipated, estimated, implied or projected. These forward-looking statements may be affected by underlying assumptions that may prove inaccurate or incomplete, or by known or unknown risks and uncertainties, including those described in this section, in MD&A or in the
Item 1A. Risk Factors
section in our 2025 Form 10-K.
Therefore, you are cautioned not to unduly rely on forward-looking statements, which speak only as of the date of this Form
10-Q. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. You are advised, however, to consult any further disclosures we make on related subjects.
Some of the factors that could cause actual results to differ are identified below, as well as those discussed in the
Item 1A. Risk Factors
section in our 2025 Form 10-K and within MD&A. We note these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. The occurrence of any of the risks identified below, in the
Item 1A. Risk Factors
section in our 2025 Form 10-K or within MD&A, or other risks currently unknown, could have a material adverse effect on our business, financial condition or results of operations, or we may be required to increase our accruals for contingencies. It is not possible to predict or identify all such factors. Consequently, you should not consider the following to be a complete discussion of all potential risks or uncertainties:
Risks Related to Our Business, Industry and Operations, and Business Development
•
the outcome of R&D activities, including the ability to meet anticipated pre-clinical or clinical endpoints, commencement and/or completion dates for our pre-clinical or clinical trials, regulatory submission dates, and/or regulatory approval and/or launch dates; the possibility of unfavorable pre-clinical and clinical trial results, including the possibility of unfavorable new pre-clinical or clinical data and further analyses of existing pre-clinical or clinical data; risks associated with preliminary, early stage or interim data; the risk that pre-clinical and clinical trial data are subject to differing interpretations and assessments, including during the peer review/publication process, in the scientific community generally, and by regulatory authorities; whether and when additional data from our pipeline programs will be published in scientific journal publications, and if so, when and with what modifications and interpretations; and uncertainties regarding the future development of our product candidates, including whether or when our product candidates will advance to future studies or phases of development or whether or when regulatory applications may be filed for any of our product candidates, including as a result of clinical trial data or regulatory decisions or feedback that could impact the future development of our product candidates, including our vaccine candidates such as our next generation pneumococcal conjugate vaccine candidate;
•
our ability to successfully address comments received from regulatory authorities such as the FDA or the EMA, or obtain approval for new products and indications from regulators on a timely basis or at all;
•
regulatory decisions impacting labeling, approval or authorization, including the scope of indicated patient populations, product dosage, manufacturing processes, safety and/or other matters, including decisions relating to developments regarding potential product impurities; uncertainties regarding the ability to obtain or maintain, and the scope of, recommendations by technical or advisory committees, and the timing of, and ability to obtain, pricing/reimbursement, approvals and product launches, all of which could impact the availability or commercial potential of our products and product candidates;
•
claims and concerns that may arise regarding the safety or efficacy of in-line products and product candidates, including claims and concerns that may arise from the conduct or outcome of post-approval clinical trials, pharmacovigilance or Risk Evaluation and Mitigation Strategies, which could impact marketing approval, product labeling, and/or availability or commercial potential;
•
the success and impact of external business development activities, as well as risks and uncertainties related to the ability to identify and execute on potential business development opportunities; the ability to satisfy the conditions to closing of any transactions in the anticipated time frame or at all, including the possibility that such transactions do not close; the ability to realize the anticipated benefits of any such transactions in the anticipated time frame or at all; the potential need for and impact of additional equity or debt financing to pursue these opportunities, which has in the past and could in the future result in increased leverage and/or a downgrade of our credit ratings and could limit our ability to obtain future financing; challenges integrating the businesses and operations; disruption to
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business or operations relationships; risks related to achieving or growing revenues for certain acquired or partnered products; significant transaction costs; and unknown liabilities;
•
competition, including from new product entrants, in-line branded products, generic products, private label products, biosimilars and product candidates that treat or prevent diseases and conditions similar to those treated or intended to be prevented by our in-line products and product candidates;
•
the ability to successfully market both new and existing products, including biosimilars;
•
difficulties or delays in manufacturing, sales or marketing; supply disruptions, shortages or stock-outs at our facilities or third-party facilities that we rely on; and legal or regulatory actions;
•
the impact of public health outbreaks, epidemics or pandemics on our business, operations and financial condition and results, including impacts on our employees, manufacturing, supply chain, sales and marketing, R&D and clinical trials;
•
risks and uncertainties related to Comirnaty and Paxlovid or any potential future COVID-19 vaccines, treatments or combinations, including, among others, the risk that as the market for COVID-19 products remains endemic and seasonal and/or COVID-19 infection rates do not follow prior patterns, demand for our COVID-19 products has and may continue to be reduced or not meet expectations, which has in the past and may continue to lead to reduced revenues, excess inventory or other unanticipated charges; risks related to our ability to develop, receive regulatory approval for, and commercialize variant adapted vaccines, combinations and/or treatments; uncertainties related to recommendations and coverage for, and the public’s adherence to, vaccines, boosters, treatments or combinations, including uncertainties related to the potential impact of narrowing recommended patient populations; whether or when our EUAs or biologics licenses will expire, terminate or be revoked; risks related to our ability to accurately predict or achieve our revenue forecasts for Comirnaty and Paxlovid or any potential future COVID-19 vaccines or treatments; and potential third-party royalties or other claims related to Comirnaty and Paxlovid;
•
trends toward managed care and healthcare cost containment, and our ability to obtain or maintain timely or adequate pricing or favorable formulary placement for our products;
•
interest rate and foreign currency exchange rate fluctuations, including the impact of global trade tensions, as well as currency devaluations and monetary policy actions in countries experiencing high inflation or deflation rates;
•
any significant issues involving our largest wholesale distributors, which account for a substantial portion of our revenues;
•
the impact of the increased presence of counterfeit medicines, vaccines or other products in the pharmaceutical supply chain;
•
any significant issues related to the outsourcing of certain operational and staff functions to third parties;
•
any significant issues related to our JVs and other third-party business arrangements, including modifications or disputes related to supply agreements or other contracts with customers including governments or other payors;
•
uncertainties related to general economic, political, business, industry, regulatory and market conditions including, without limitation, uncertainties related to the impact on us, our customers, suppliers and lenders and counterparties to our foreign-exchange and interest-rate agreements of challenging global economic conditions, such as inflation or interest rate fluctuations, and changes in global financial markets;
•
the exposure of our operations globally to possible capital and exchange controls, economic conditions, expropriation, sanctions, tariffs and/or other restrictive government actions, changes in intellectual property legal protections and remedies, unstable governments and legal systems and inter-governmental disputes;
•
risks and uncertainties related to issued or future executive orders or other new, or changes in, laws, regulations or policy regarding tariffs or other trade or foreign policy and/or the impact of any potential U.S. Governmental shutdowns, including impacts on governmental agencies due to a shutdown;
•
the risk and impact of tariffs on our business, which is subject to a number of factors including, but not limited to, restrictions on trade, the effective date and duration of such tariffs, countries included in the scope of tariffs, changes to amounts of tariffs, and potential retaliatory tariffs or other retaliatory actions imposed by other countries;
•
the impact of disruptions related to climate change and natural disasters;
•
any changes in business, political and economic conditions due to actual or threatened terrorist activity, geopolitical instability, political or civil unrest or military action and the resulting economic or other consequences;
•
the impact of product recalls, withdrawals and other unusual items, including uncertainties related to regulator-directed risk evaluations and assessments, such as our ongoing evaluation of our product portfolio for the potential presence or formation of nitrosamines, and our voluntary withdrawal of all lots of Oxbryta in all markets where it is approved and any regulatory or other impact on Oxbryta and other sickle cell disease assets;
•
trade buying patterns;
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•
the risk of an impairment charge related to our intangible assets, goodwill or equity-method investments;
•
the impact of, and risks and uncertainties related to, restructurings and internal reorganizations, as well as any other corporate strategic initiatives and growth strategies, and cost-reduction and productivity initiatives, including any potential future phases, each of which requires upfront costs but may fail to yield anticipated benefits and may result in unexpected costs, organizational disruption, adverse effects on employee morale, retention issues or other unintended consequences;
•
the ability to successfully achieve our climate-related goals and progress our environmental and other sustainability priorities;
Risks Related to Government Regulation and Legal Proceedings
•
the impact of any U.S. healthcare reform or legislation, including executive orders or other change in laws, regulations or policy, or any significant spending reduction or cost control efforts affecting Medicare, Medicaid, the 340B Program or other publicly funded or subsidized health programs, including the IRA and the IRA Medicare Part D Redesign, government cuts to Affordable Care Act (ACA) subsidies, or changes in the tax treatment of employer-sponsored health insurance that may be implemented;
•
risks and uncertainties related to the impact of Pfizer’s voluntary agreement with the U.S. Government designed to lower drug costs for U.S. patients and to include certain Pfizer products on the TrumpRx.gov platform, Pfizer’s plans to further invest in U.S. manufacturing and potential tariff impacts, including risks relating to entering into binding final agreements with the U.S. Government and its impact on the applicability of Section 232 tariffs;
•
U.S. federal or state legislation or regulatory action and/or policy efforts affecting, among other things, pharmaceutical product pricing, including international reference pricing (including Most-Favored-Nation drug pricing), intellectual property, product approval processes and pathways, reimbursement or access to or recommendations for our medicines and vaccines, tax changes or other restrictions on U.S. direct-to-consumer advertising; limitations on interactions with healthcare professionals and other industry stakeholders; as well as pricing pressures for our products as a result of highly competitive biopharmaceutical markets;
•
risks and uncertainties related to changes to vaccine or other healthcare policy in the U.S., including: (i) risks and uncertainties relating to the evolving vaccine landscape; and (ii) the FDA's recently adopted policy of disclosing Complete Response Letters for unapproved drug candidates and the attendant risk of disclosure of trade secrets or confidential commercial information;
•
legislation or regulatory action and/or policy efforts in markets outside of the U.S., such as China or Europe, including, without limitation, laws related to pharmaceutical product pricing, intellectual property, medical regulation, environmental protections, data protection and cybersecurity, reimbursement or access, including, in particular, continued government-mandated reductions in prices and access restrictions for certain products to control costs in those markets;
•
legal defense costs, insurance expenses, settlement costs and contingencies, including without limitation, those related to legal proceedings and actual or alleged environmental contamination;
•
the risk and impact of an adverse decision or settlement and risk related to the adequacy of reserves related to legal proceedings;
•
the risk and impact of tax related litigation and investigations;
•
governmental laws, regulations and policies affecting our operations, including, without limitation, the IRA, as well as changes in such laws, regulations or policies or their interpretation, including, among others, new or changes in tariffs, tax laws and regulations internationally and in the U.S., including the OBBBA, which was enacted on July 4, 2025, and is still subject to further guidance; the adoption of global minimum taxation requirements outside the U.S. generally effective in most jurisdictions since January 1, 2024, government cost-cutting measures and related impacts on, among other matters, government staffing, resources and ability to timely review and process regulatory or other submissions; restrictions related to certain data transfers, including data security, data localization and cross border data transfer regulations, and transactions involving certain countries; and potential changes to existing tax laws, tariffs, or changes to other laws, regulations or policies in the U.S., including by the U.S. Presidential administration and Congress, as well as in other countries;
Risks Related to Intellectual Property, Technology and Cybersecurity
•
the risk that our currently pending or future patent applications may not be granted on a timely basis or at all, or any patent-term extensions that we seek may not be granted on a timely basis, if at all;
•
risks to our products, patents and other intellectual property, such as: (i) claims of invalidity that could result in loss of patent coverage; (ii) claims of patent infringement, including asserted and/or unasserted intellectual property claims; (iii) claims we may assert against intellectual property rights held by third parties; (iv) challenges faced by our collaboration or licensing partners to the validity of their patent rights; or (v) any pressure from, or legal or regulatory action by, various stakeholders or
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governments that could potentially result in us not seeking intellectual property protection or agreeing not to enforce or being restricted from enforcing intellectual property rights related to our products;
•
any significant breakdown or interruption of our information technology systems and infrastructure (including cloud services);
•
any business disruption, theft of confidential or proprietary information, security threats on facilities or infrastructure, extortion or integrity compromise resulting from a cyber-attack, which may include those using adversarial AI techniques, or other malfeasance by, but not limited to, nation states, employees, business partners or others; and
•
risks and challenges related to the use of proprietary or third-party software, systems and services (including cloud services) that include AI-based functionality and other emerging technologies, such as the risk of inaccurate, biased or otherwise flawed outputs of AI tools and models; risks related to the protection of proprietary data and confidential information used in or generated by AI systems; reputational risks related to the use of AI in drug discovery, clinical development, manufacturing, commercial operations or patient-facing applications; and the risk that anticipated cost savings from AI, automation and digital enablement efforts may not be realized in the expected amounts or within expected timeframes.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information required by this item is incorporated by reference from the discussion in the
Analysis of Financial Condition, Liquidity, Capital Resources and Market Risk
section within MD&A of our 2025 Form 10-K.
ITEM 4. CONTROLS AND PROCEDURES
As of the end of the period covered by this Form 10-Q, we carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective in alerting them in a timely manner to material information required to be disclosed in our periodic reports filed with the SEC.
During our most recent fiscal quarter, there has not been any change in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II.  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
Certain legal proceedings in which we are involved are discussed in
Note 12A
.
ITEM 1A. RISK FACTORS
We refer to the
Overview of Our Performance, Operating and Global Economic Environment—Our Operating Environment

and
—The Global Economic Environment

sections and the
Forward-Looking Information and Factors That May Affect Future Results
section within MD&A of this Form 10-Q and of our 2025 Form 10-K and to the
Item 1A. Risk Factors
section of our 2025 Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following summarizes purchases of our common stock during the first quarter of 2026:
Period Total Number of Shares Purchased (a) Average Price Paid per Share (a) Total Number of Shares Purchased as Part of Publicly Announced Plan Approximate Value of Shares That May Yet Be Purchased Under the Plan (b)
January 1 through January 25, 2026 35,958 $ 24.98 — $ 3,292,882,444
January 26 through February 22, 2026 135,774 $ 26.55 — $ 3,292,882,444
February 23 through March 29, 2026 6,461,296 $ 27.09 — $ 3,292,882,444
Total 6,633,028 $ 27.07 —

(a)
Represents (i) 6,629,823 shares of common stock surrendered to the Company to satisfy tax withholding obligations in connection with the vesting of awards under our long-term incentive programs and (ii) the open market purchase by the trustee of 3,205 shares of common stock in connection with the reinvestment of dividends paid on common stock held in trust for employees who deferred receipt of performance share awards.
(b)
See
Note 12
in our 2025 Form 10-K.
ITEM 5. OTHER INFORMATION
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During the three months ended March 29, 2026, none of our directors or officers
adopted
or
terminated
a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
ITEM 6. EXHIBITS
Exhibit 10 .1 Pfizer Inc. 2019 Stock Plan, as amended April 2026.
Exhibit 31.1 Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2 Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1 Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2 Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101:
EX-101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
EX-101.SCH EX-101.CAL EX-101.LAB EX-101.PRE EX-101.DEF Inline XBRL Taxonomy Extension Schema Inline XBRL Taxonomy Extension Calculation Linkbase Inline XBRL Taxonomy Extension Label Linkbase Inline XBRL Taxonomy Extension Presentation Linkbase Inline XBRL Taxonomy Extension Definition Document
Exhibit 104 Cover Page Interactive Data File––the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Pfizer Inc.
(Registrant)
Dated: May 5, 2026 /s/ Jennifer B. Damico
Jennifer B. Damico Senior Vice President, Controller & Chief Accounting Officer

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