Pfizer PFE · USD

Segment, Geographic and Other Revenue InformationA. Segment InformationWe manage our commercial operations through three operating segments, each led by a single manager: Biopharma, PC1 and Pfizer Ignite. 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. Pfizer Ignite is an offering that provides strategic guidance and end-to-end R&D services to select innovative biotech companies that align with Pfizer’s R&D focus areas. Biopharma is the only reportable segment. Pfizer’s CODM is the Chairman and Chief Executive Officer. Our CODM uses the revenues and earnings of the operating segments, among other factors, for performance evaluation and resource allocation. The CODM uses segment revenues and earnings in the annual budgeting process when setting strategic goals for the company and considers periodic budget-to-actual variances in segment revenues and earnings when assessing performance of the segments and making decisions about allocating resources to the operating segments. By analyzing segment financial results, the CODM can discern trends, which can inform decisions that align with the company’s goals and objectives, and help ensure risks are managed appropriately. 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 2025, we made the following changes within our Biopharma reportable segment that went into effect on January 1, 2025 to support our continued focus on commercial execution and to further strengthen Pfizer’s capabilities and leadership in discovering and developing breakthrough medicines and vaccines:•Transitioned all activities within the former Pfizer Oncology Division to other parts of Biopharma. Specifically, within our Biopharma reportable segment the U.S.

Share-Based PaymentsOur compensation programs can include share-based payment awards with their value determined by reference to the fair value of our shares and can consist of the grant of shares or options to acquire shares or similar arrangements. The level of our share-based awards are based on competitive survey data and/or industry peer groups used for compensation purposes, and is allocated between different long-term incentive award vehicles, generally in the form of Total Shareholder Return Units (TSRUs), Restricted Stock Units (RSUs), Portfolio Performance Shares (PPSs), Performance Share Awards (PSAs) and stock options, as determined by the Compensation Committee of our BOD.The Amended and Restated 2019 Stock Plan (2019 Plan) replaced and superseded the original 2019 Stock Plan (Original Plan). The 2019 Plan provides for 320 million shares to be authorized for grants plus any shares remaining available for grant under the Original Plan as of April 25, 2024 (the carryforward shares). Awards granted under the 2019 Plan reduce the shares available for future grants as follows: RSUs count as three shares, and PPSs and PSAs count as six shares (three shares times 2 (the maximum potential payout)), while TSRUs and stock options count as one share. As of December 31, 2025, 313 million shares were available for future award. Although not required to do so, we have used authorized and unissued shares and, to a lesser extent, treasury stock to satisfy our obligations under these programs.A summary of the awards and valuation details:Awarded toTermsValuationRecognition and PresentationTotal Shareholder Return Units (TSRUs)Senior and other key management and select employees•Entitle the holder to receive shares of our common stock with a value equal to the difference between the defined settlement price and the grant price, plus the dividend equivalents accumulated during the five or seven-year term, if and to the extent the total value is positive.•Settlement price is the average closing price of our common stock during the 20 trading days ending on the fifth or seventh anniversary of the grant, as applicable; the grant price is the closing price of our common stock on the date of the grant.•Automatically settle on the fifth or seventh anniversary of the grant but vest on the third anniversary of the grant.

LeasesWe lease real estate, fleet, and equipment for use in our operations. Our leases generally have lease terms of 1 to 30 years, some of which include options to terminate or extend leases for up to 5 to 10 years or on a month-to-month basis. We include options that are reasonably certain to be exercised as part of the determination of lease terms. We may negotiate termination clauses in anticipation of any changes in market conditions, but generally these termination options have not been exercised. Residual value guarantees are generally not included within our operating leases with the exception of some fleet leases. In addition to base rent payments, the leases may require us to pay directly for taxes and other non-lease components, such as insurance, maintenance and other operating expenses, which may be dependent on usage or vary month-to-month. Variable lease payments amounted to $453 million in 2025, $517 million in 2024 and $444 million in 2023. We elected the practical expedient to not separate non-lease components from lease components in calculating the amounts of ROU assets and lease liabilities for all underlying asset classes.We determine if an arrangement is a lease at inception of the contract and we perform the lease classification test as of the lease commencement date. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

Acquisitions, Divestitures, Equity-Method Investments, Collaborative Arrangements, Research and Development Arrangements and In-Licensing ArrangementsA. AcquisitionsMetsera––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. In addition, $129 million in post-closing compensation expense for Metsera employee incentive awards was recorded in Restructuring charges and certain acquisition-related costs.In connection with this business combination, we provisionally recorded: (i) $8.0 billion of identifiable intangible assets, net, consisting of IPR&D, (ii) $2.2 billion of Goodwill, (iii) $1.7 billion of net deferred tax liabilities, and (iv) $635 million of contingent consideration liability assumed from Metsera. Goodwill resulted primarily from the recognition of deferred tax liabilities, is related to our Biopharma segment (see Note 10) 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 milestones, 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.Pro forma information has not been presented because this acquisition is not material to our consolidated financial statements.

Managing cybersecurity risk is a crucial part of our overall strategy for safely operating our business. We incorporate cybersecurity practices into our Enterprise Risk Management (ERM) program. Management is responsible for assessing and managing risk, including through the ERM program, subject to oversight by our BOD. Our cybersecurity policies and practices are aligned with NIST (National Institute of Standards and Technology) industry standards.Consistent with our overall ERM program and practices, our cybersecurity program includes:•Vigilance: We maintain a global cybersecurity operation that endeavors to detect, prevent, contain, and respond to cybersecurity threats and incidents in a prompt and effective manner with the goal of minimizing business disruptions.•External Collaboration: We collaborate with public and private entities, including intelligence and law enforcement agencies, industry groups and third-party service providers to identify, assess and mitigate cybersecurity risks.•Systems Safeguards: We deploy technical safeguards that are designed to protect our information systems, products, operations and sensitive information from cybersecurity threats. These include firewalls, intrusion prevention and detection systems, disaster recovery capabilities, malware and ransomware prevention, access controls and data protection. We continuously conduct vulnerability assessments to identify new risks and periodically test the efficacy of our safeguards through both internal and external penetration tests.•Education: We provide periodic training for all personnel regarding cybersecurity threats, with such training appropriate to the roles, responsibilities and access of the relevant Company personnel. Our policies require all workers to report any real or suspected cybersecurity events.•Supplier Ecosystem Management: We extend our cybersecurity management control expectations to our supply chain ecosystem, as appropriate. This includes identifying cybersecurity risks presented by third parties.•Incident Response Planning: We have established, and maintain and periodically test, incident response plans that direct our response to cybersecurity events and incidents. Such plans include the protocol by which certain significant or potentially material incidents would be communicated to executive management, our BOD, external regulators and shareholders, as appropriate.

EquityA. Common Stock PurchasesWe have authorization to purchase our common stock through privately negotiated transactions or in the open market as circumstances and prices warrant. Purchased shares under a share-purchase plan, which is authorized by our BOD, are available for general corporate purposes. In December 2018, the BOD authorized a $10 billion share repurchase program to be utilized over time and share repurchases commenced thereunder in the first quarter of 2019.We did not purchase shares of our common stock under our publicly announced share-purchase plan in any of the periods presented. Our remaining share-purchase authorization was $3.3 billion as of December 31, 2025.B. Preferred StockWe have 27 million authorized shares of preferred stock without par value; no shares of preferred stock were issued or outstanding as of December 31, 2025 and 2024.

Tax Matters As a result of the prospective adoption of ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), certain tables are presented in a different format not comparable to prior year disclosures, and certain data contained within the tables may be presented differently than in prior years.A. Taxes on Income from Continuing OperationsComponents of Income from continuing operations before provision/(benefit) for taxes on income include: Year Ended December 31, (MILLIONS)202520242023United States$776 $(637)$(4,411)International6,744 8,660 5,469 Income from continuing operations before provision/(benefit) for taxes on income(a), (b)$7,520 $8,023 $1,058 (a)2025 v. 2024––The domestic income in 2025 versus the domestic loss in 2024 is primarily attributable to a reduction in operating expenses and restructuring charges, partially offset by higher asset impairment and legal charges. The decrease in the international income in 2025 versus international income in 2024 is primarily attributable to higher asset impairment charges. For 2025, the data in this table conforms to the updated income tax disclosure guidance in accordance with ASU 2023-09.(b)2024 v. 2023––The reduction in the domestic loss in 2024 versus the domestic loss in 2023 is primarily attributable to increased revenues offset by higher restructuring charges and asset impairment charges. The increase in the international income is primarily attributable to lower: Cost of Sales, Restructuring charges and certain acquisition-related costs and asset impairment charges.Components of Provision/(benefit) for taxes on income based on the location of the taxing authorities include: Year Ended December 31, (MILLIONS)202520242023Current tax expense (benefit):U.S. Federal$384 $453 $1,321 U.S. State and local172 32 (135)Foreign1,310 1,588 1,142 Total current tax expense (benefit)$1,866 $2,074 $2,328 Deferred tax expense (benefit):U.S. Federal$(1,826)$(1,909)$(2,606)U.S. State and local(61)(293)(184)Foreign(246)100 (652)Total deferred tax expense (benefit)$(2,133)$(2,102)$(3,442)Total income tax expense (benefit)U.S. Federal$(1,442)$(1,456)$(1,285)U.S. State and local112 (261)(319) Foreign1,064 1,689 490 Provision/(benefit) for taxes on income$(266)$(28)$(1,115)The changes in Provision/(benefit) for taxes on income impacting the effective tax rate year-over-year are summarized below:2025 v.

Financial InstrumentsA. Fair Value MeasurementsFinancial Assets and Liabilities Measured at Fair Value on a Recurring Basis and Fair Value Hierarchy:As of December 31, 2025As of December 31, 2024(MILLIONS)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Financial assets:Short-term investmentsEquity securities with readily determinable fair value(a)$2,596 $— $2,596 $— $7,848 $6,456 $1,392 $— Available-for-sale debt securities:Government and agency—non-U.S.4,859 — 4,859 — 6,855 — 6,855 — Government and agency—U.S.3,030 — 3,030 — 2,853 — 2,853 — Corporate and other1,294 — 1,294 — 1,173 — 1,173 — 9,183 — 9,183 — 10,881 — 10,881 — Total short-term investments11,779 — 11,779 — 18,729 6,456 12,273 — Other current assetsDerivative assets:Interest rate contracts— — — — — — — — Foreign exchange contracts416 — 416 — 1,056 — 1,056 — Total other current assets416 — 416 — 1,056 — 1,056 — Long-term investmentsEquity securities with readily determinable fair values(b)642 642 — — 1,246 1,246 — — Available-for-sale debt securities:Government and agency—non-U.S.1 — 1 — — — — — Corporate and other— — — — — — — — 1 — 1 — — — — — Total long-term investments642 642 1 — 1,246 1,246 — — Other noncurrent assetsDerivative assets:Interest rate contracts52 — 52 — 13 — 13 — Foreign exchange contracts64 — 64 — 447 — 447 — Total derivative assets116 — 116 — 460 — 460 — Insurance contracts(c)999 — 999 — 875 — 875 — Total other noncurrent assets1,115 — 1,115 — 1,335 — 1,335 — Total assets$13,953 $642 $13,311 $— $22,366 $7,701 $14,665 $— Financial liabilities:Other current liabilitiesDerivative liabilities:Interest rate contracts$16 $— $16 $— $28 $— $28 $— Foreign exchange contracts412 — 412 — 217 — 217 — Contingent consideration liabilities(d)95 — — 95 39 — — 39 Total other current liabilities523 — 428 95 284 — 245 39 Other noncurrent liabilitiesDerivative liabilities:Interest rate contracts215 — 215 — 397 — 397 — Foreign exchange contracts815 — 815 — 723 — 723 — Contingent consideration liabilities(d)1,695 — — 1,695 477 — — 477 Total other noncurrent liabilities2,725 — 1,030 1,695 1,598 — 1,121 477 Total liabilities$3,248 $— $1,458 $1,790 $1,882 $— $1,366 $517 (a)Includes money market funds primarily invested in U.S. Treasury and government debt. As of December 31, 2024, short-term equity securities included our previous investment in Haleon of $6.5 billion. In the first quarter of 2025, we sold the remaining portion of our investment in Haleon for $6.3 billion. See Note 2C.