Pfizer PFE and AstraZeneca AZN are global pharmaceutical leaders with a strong presence in oncology. For Pfizer, oncology is a major growth driver, contributing about 27% of total revenues. Beyond cancer, Pfizer has a diversified portfolio spanning inflammation and immunology, rare diseases and vaccines.
AstraZeneca has an even greater reliance on oncology, which generates about 44% of total revenues. Beyond oncology, it has strong franchises in immunology, rare diseases, vaccines, and cardiovascular, respiratory and metabolic diseases.
Both companies have robust R&D pipelines that should drive innovative therapies and long-term growth. But which stock offers the better investment opportunity today? Let’s compare their fundamentals, growth prospects and key risks to find out.
The Case for PFE Stock
Pfizer is one of the largest and most successful drugmakers in oncology. Its position in oncology was strengthened with the acquisition of Seagen in 2023. Its oncology revenues grew 7% to $3.8 billion in the first quarter of 2026, driven by drugs like Lorbrena, the Braftovi-Mektovi combination and Padcev.
Pfizer’s dependence on its COVID business has now reduced. Its non-COVID operational revenues are improving, driven by key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products like Nurtec and those from Seagen. In 2026, Pfizer expects its recently launched and acquired products to record continued double-digit growth.
The company is also trying to rebuild its pipeline through acquisitions. Seagen, Metsera and Biohaven are the most significant strategic acquisitions in recent years.
The company is rebuilding its pipeline in oncology and obesity, which it believes can drive growth in 2028 and beyond. Pfizer plans an extensive phase III program for berobenatide, its monthly GLP-1 receptor agonist added from last year’s Metsera acquisition, in 2026. Pfizer plans to start more than 20 obesity studies in 2026, including 10 phase III studies for berobenatide for obesity and obesity-related comorbidities, including knee osteoarthritis and obstructive sleep apnea. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028. It also plans to start four pivotal studies for PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025.
Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer’s dividend yield is more than 7%, which is also impressive.
However, Pfizer faces a significant patent cliff later this decade. It expects a significant negative impact on revenues from the loss of exclusivity (“LOE”) in the 2026-2030 period as several of its key products, including Eliquis, Ibrance, Xeljanz and Xtandi, face patent expirations. The LOE cliff is expected to hurt sales by approximately $1.5 billion in 2026.
Pfizer is also a late entrant in the obesity market, which is heavily dominated by Eli Lilly LLY and Novo Nordisk NVO. LLY and NVO already have a massive first-mover advantage in the obesity space and enjoy strong brand recognition.
Pfizer’s 2026 outlook also failed to impress investors. Its revenue and earnings guidance for 2026 represents mostly flat to slightly negative growth.
Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years starting in 2029. Pfizer expects the growth to be driven by its advancing R&D pipeline and the continued progress of new and acquired products.
The Case for AstraZeneca
AstraZeneca now has 16 blockbuster medicines, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza, Soliris and Ultomiris in its portfolio, with sales (product sales and alliance revenues) exceeding $1 billion. These drugs are driving AstraZeneca’s top-line growth, backed by increasing demand trends.
Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also contributing to top-line growth, more than offsetting the LOE of some mature brands like Brilinta, Pulmicort and Soliris.
In 2026, AZN expects continued revenue and earnings growth. It expects total revenues to grow by a mid-to-high single-digit percentage at CER in 2026, while core EPS is expected to increase by a low double-digit percentage at CER.
AstraZeneca has set itself some visible targets for the next few years. It expects to generate $80 billion in total revenues by 2030. By the said time frame, AstraZeneca plans to launch 20 new medicines, with around half of these already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026.
AstraZeneca’s pipeline is also strong, with pivotal data readouts lined up for 2026.
However, several of AstraZeneca’s established medicines are facing patent expirations and pricing pressures. Generic erosion is already hurting sales of Brilinta and Soliris in some markets. Sales of key drug Farxiga are expected to be under pressure in 2026 due to the LOE in some countries like the United States, the United Kingdom, Japan and China. Also, China, though an important market for AstraZeneca, remains a somewhat uncertain market due to pricing pressure from volume-based procurement programs and ongoing legal and compliance investigations involving the company’s former China head, Leon Wang.
How Do Estimates Compare for AZN & PFE?
The Zacks Consensus Estimate for AZN’s 2026 sales and EPS implies a year-over-year increase of 8.08% and 12.23%, respectively. EPS estimates for 2026 have risen from $10.24 per share to $10.28 per share over the past 60 days, while those for 2027 have declined from $11.49 to $11.46 per share over the same timeframe.
AZN Estimate Movement
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The Zacks Consensus Estimate for Pfizer’s 2026 sales and EPS implies a year-over-year decline of 1.17% and 7.14%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $2.98 per share to $2.99, while that for 2027 has risen from $2.81 per share to $2.86 over the past 60 days.
PFE Estimate Movement
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Price Performance and Valuation of AZN & PFE
Year to date, Pfizer’s stock has declined 1.5%, while AstraZeneca’s stock has risen 4.5% compared with the industry’s increase of 15.3%.
Image Source: Zacks Investment Research
Pfizer looks more attractive than AZN from a valuation standpoint. Going by the price/earnings ratio, AZN’s shares currently trade at 17.46 forward earnings, lower than 19.11 for the industry. AZN’s stock is trading slightly below its 5-year mean of 17.49. Pfizer’s shares currently trade at 8.13 forward earnings, significantly lower than the industry and the stock’s 5-year mean of 9.41.
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AstraZeneca’s dividend yield is around 2.3%, while Pfizer's is 7.3%.
PFE or AZN: Which is a Better Pick?
AstraZeneca has a Zacks Rank #3 (Hold), while Pfizer has a Zacks Rank #4 (Sell), which clearly shows that AstraZeneca is the winner.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer is navigating a difficult transition following the sharp decline in COVID-related sales from Comirnaty and Paxlovid. The market is concerned about Pfizer’s ability to replace declining COVID-related revenues and offset upcoming patent expirations through new product launches, pipeline development and contributions from its Seagen acquisition.
On the other hand, AstraZeneca’s revenue growth has remained in the high-single to low-double-digit range while earnings continue to expand steadily. AstraZeneca has demonstrated more efficient profitability, and its upside potential appears to be higher.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
