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Pfizer Pops on Q4 Results—But This May Be the Catalyst That Matters Most
Written by Chris Markoch. First Published: 2/5/2026.
Quick Look
- Pfizer stock jumped after a beating on the top and bottom lines, but the rally may reflect more than just strong quarterly results and short-term GLP-1 excitement.
- Positive Phase 2b GLP-1 obesity data gives Pfizer optionality, though meaningful revenue from weight-loss drugs is still several years away.
- An expanding oncology pipeline and AI-driven R&D strategy could be the most overlooked long-term growth catalysts for PFE.
Pfizer Inc. (NYSE: PFE) helped boost the Dow Jones Industrial Average (DJIA) the day after delivering a double beat in its fourth-quarter earnings report.
Revenue of $17.56 billion topped analysts' estimates of $16.93 billion. On the bottom line, Pfizer delivered adjusted earnings per share (EPS) of $0.69, beating estimates of $0.57. A highlight of the report was Pfizer's announcement of positive topline results from the Phase 2b study for its lead GLP-1 drug candidate.
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Discover how to invest in the fund Trump uses to collect this income >>PFE stock closed up 4% on Feb. 4 as analysts and investors digested the report.
The bullish thesis is that while GLP-1 headlines may drive near-term excitement, Pfizer's more durable upside is likely to come from its expanding oncology pipeline and its accelerating use of artificial intelligence across R&D. That story begins with the company's push into obesity, where it reported a notable clinical update alongside the quarter.
Pfizer Wants a Piece of the Weight-Loss Drug Pie
The weight-loss drug market is expanding rapidly. Data show the global GLP-1 market will grow from $62.2 billion in 2025 to $157 billion by 2035.
That represents a compound annual growth rate (CAGR) of 9.7%, which helps explain why billions of dollars are flowing into the industry from companies trying to carve out market share.
For Pfizer, that opportunity centers on its lead GLP-1 candidate, MET-097i. The company announced results from its Phase 2b VESPER-3 study, which met its primary endpoint and showed a statistically significant, placebo-adjusted weight loss of up to 12.3% at 28 weeks.
Pfizer also noted that patients continued to lose weight after transitioning from weekly to monthly dosing, with no plateau observed by week 28.
The Growth Driver Investors May Be Missing
Immediately after the report, conventional wisdom attributed the stock's gain to the positive clinical results. That may be true, but investors should recognize that such news can produce a short-term sugar high.
While Pfizer's GLP-1 program shows promise, it will take time for that to meaningfully affect the company's financials. The GLP-1 trade is also expanding, and as the recent report from Eli Lilly & Co. (NYSE: LLY) illustrates, incumbent players aren't ceding leadership in obesity drugs anytime soon.
There are, however, other reasons to be bullish on PFE — notably its oncology portfolio. Business Research Insights values the global oncology drugs market at approximately $264.92 billion in 2026, projected to climb to $648.08 billion by 2035, reflecting a CAGR of around 10.3%.
A Growing Pipeline Gives Pfizer Many Shots on Goal
As of late 2025, Pfizer had approximately 60 candidates in its product portfolio, translating to numerous opportunities to capture market share. The company's pipeline was strengthened considerably after its acquisition of Seagen in 2023.
Pfizer's portfolio includes late-stage candidates such as Vepdegestrant, a next-generation targeted protein degrader (PROTAC), and atirmociclib, a selective CDK4 inhibitor, which are being evaluated together to treat ER+/HER2- metastatic breast cancer in later-stage trials.
Other late-stage candidates include:
- Sigvotatug vedotin, an antibody-drug conjugate (ADC) in Phase 3 testing (e.g., Be6A LUNG-01) against metastatic non-small cell lung cancer, leveraging expertise gained from the Seagen acquisition.
- Sasanlimab, being evaluated for bladder cancer, and a bispecific PD-1xVEGF agent (PF-4404), which is being tested in combination with Padcev to treat urothelial cancer — both positioned as potential blockbusters amid oncology growth.
Pfizer could be bringing multiple drugs to market over the next five to 10 years. That potential is amplified by the company's growing commitment to artificial intelligence (AI), which is becoming essential across the biopharmaceutical sector.
Pfizer integrates AI across R&D through partnerships like Boltz for biomolecular modeling, XtalPi for molecular design, and Data4Cure for oncology data analytics, accelerating target identification by at least 50% with tools such as OncoScout. Internally, platforms like "Charlie" handle data mining, predictions, and content generation, while collaborations with NVIDIA (NASDAQ: NVDA) optimize discovery and manufacturing.
These efforts were critical in the company's rapid development of Paxlovid and support planned 2026 catalysts in oncology and obesity. Pfizer is targeting $1.2 billion in savings by 2027 through efficiency gains.
Industry-wide, AI is projected to boost productivity 35% to 45% by improving preclinical decisions and trial design, making it a core competitive edge rather than optional hype. Pfizer has positioned itself at the forefront of AI adoption in biopharma, which should benefit investors over the medium and long term.
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