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Investing.com - Pfizer (NYSE:PFE) shares declined 1.5% despite the company reporting slightly better-than-expected third-quarter earnings, as Goldman Sachs maintained its Neutral rating and $26.00 price target on the stock. According to InvestingPro data, Pfizer appears undervalued with a Fair Value significantly above its current price of $24.30, suggesting potential upside that the market may not be fully recognizing.
The pharmaceutical giant raised the lower end of its 2025 earnings guidance from $2.90-$3.10 to $3.00-$3.15 per share, with the improvement primarily driven by cost-cutting measures and a lower tax rate rather than revenue growth. This aligns with InvestingPro data showing Pfizer’s net income is expected to grow this year, despite modest revenue forecasts indicating a 1% decline for FY2025.
Goldman Sachs noted that Pfizer’s earnings revealed ongoing headwinds to its COVID franchise as expected, alongside misses across multiple other key products, while bottom-line performance benefited from continued cost controls.
The investment bank observed that despite Pfizer successfully beating estimates and raising guidance over recent quarters through cost discipline, the market has consistently failed to reward these efforts, with shares fading after each earnings-driven rally throughout the year.
Looking ahead, Goldman Sachs has lowered its 2026 earnings forecast for Pfizer to $3.01 per share, below consensus estimates of $3.14, citing persistent topline pressures and uncertainties on multiple fronts, including the outcome of the Metsera deal, as investor focus shifts to the company’s upcoming 2026 guidance announcement on December 16. Despite these challenges, InvestingPro data shows Pfizer maintains strong fundamentals with a healthy free cash flow yield of 8% and trades at a P/E ratio of 14.3, significantly below many pharmaceutical peers. For deeper insights into Pfizer’s financial health and comprehensive analysis, check out the Pro Research Report available for this prominent pharmaceutical player.
In other recent news, Pfizer Inc. reported its third-quarter 2025 earnings, revealing an adjusted diluted earnings per share (EPS) of $0.87. This figure surpassed analyst expectations, which had projected an EPS of $0.66. Despite this earnings beat, Pfizer’s revenue came in slightly below forecasts, totaling $16.7 billion compared to the anticipated $16.8 billion. The earnings call highlighted the disparity between the EPS success and the revenue shortfall, which caught the attention of investors. These developments reflect ongoing investor concerns about the company’s financial performance amidst broader market conditions. Analyst reactions to these results have not been detailed in recent reports, but the earnings and revenue figures provide essential insights for stakeholders. These updates are part of Pfizer’s continuous financial disclosures, offering a glimpse into the company’s current fiscal health.
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