Pfizer (PFE Quick QuotePFE - Free Report) and AbbVie (ABBV Quick QuoteABBV - Free Report) are leading U.S. drugmakers with strong positions across multiple therapeutic areas. Oncology contributes roughly 27% of Pfizer’s total revenues, while the company also maintains a solid footprint in inflammation and immunology, rare diseases and vaccines.

AbbVie, meanwhile, has established strength in immunology, oncology and neuroscience, along with a presence in aesthetics and eye care. Its newer immunology therapies, Skyrizi and Rinvoq, have effectively offset the impact of Humira’s loss of exclusivity (“LOE”). Immunology now generates about half of the company’s total revenues.

Both companies boast robust R&D pipelines that should drive innovation and long-term growth. However, which stock offers the more compelling opportunity at present? A closer look at their fundamentals, growth prospects and key risks can help determine the better pick.

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 8% in 2025, driven by drugs like Xtandi, 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. Sales of Pfizer's recently launched and acquired products rose approximately 14% operationally year over year in 2025. In 2026, Pfizer expects its recently launched and acquired products to record continued double-digit growth.

Pfizer is also trying to rebuild its pipeline through acquisitions. Seagen, Metsera and Biohaven are the most significant strategic acquisitions in recent years. In 2025, Pfizer invested around $9 billion in M&A deals, including the acquisition of obesity drugmaker, Metsera and the licensing deal with 3SBio.

Pfizer plans to start 20 pivotal studies in 2026, including 10 pivotal studies for the ultra-long-acting obesity candidates added from the Metsera acquisition and four for PF-08634404, the dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025.

Pfizer expects its recently launched and acquired products and a strong pipeline to help revive top-line growth toward the end of the decade.

Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer’s dividend yield stands at around 6.3%, which is also impressive.

However, Pfizer’s 2026 outlook failed to impress investors. PFE’s revenue and earnings guidance for 2026 represents mostly flat to slightly negative growth, which disappointed investors. Its other challenges include declining sales of its COVID products, unfavorable impact from the Medicare Part D redesign and the upcoming LOE cliff in the 2026-2030 period as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, face patent expirations.

The Case for AbbVie Stock

AbbVie has successfully navigated the LOE of its blockbuster drug, Humira, which once generated more than 50% of its total revenues. It has accomplished this by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.

Skyrizi and Rinvoq generated combined sales of $26.0 billion in 2025, exceeding expectations and representing year-over-year growth of more than 40%. In 2026, AbbVie expects combined Skyrizi and Rinvoq sales of more than $31 billion.

AbbVie’s neuroscience portfolio is also contributing to top-line growth. Sales of its neuroscience drugs increased almost 20% to $10.8 billion in 2025, driven by higher sales of Botox Therapeutic, depression drug Vraylar and newer migraine drugs Ubrelvy and Qulipta.

Its oncology segment generated combined revenues of $6.6 billion in 2025, up 1.5% year over year as higher sales of Venclexta and contributions from new drugs, Elahere and Epkinly, partially offset the decline in Imbruvica sales.

AbbVie has been on an acquisition spree in the past couple of years to bolster the early-stage pipeline that should drive long-term growth. Particularly, it is signing several M&A deals in the immunology space, its core area, and also inking some early-stage deals in oncology and neuroscience areas. In 2025, AbbVie invested more than $5 billion to acquire innovative pipeline candidates.

The company faces some near-term headwinds like Humira’s biosimilar erosion, a slight slowdown in oncology sales and declining sales of its Aesthetics unit due to continued macro challenges and weakened consumer sentiment. Global sales of the aesthetics portfolio declined 5.9% in 2025.

How Do Estimates Compare for PFE & ABBV?

The Zacks Consensus Estimate for Pfizer’s 2026 sales and EPS implies a year-over-year decrease of 2.5% and 7.5%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $2.97 per share to $2.98 per share, while that for 2027 is stable at $2.82 per share over the past 60 days.

PFE Estimate Movement

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The Zacks Consensus Estimate for AbbVie’s 2026 sales and EPS implies a year-over-year increase of 9.6% and 45.3%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $14.46 per share to $14.53, while that for 2027 has decreased from $16.15 to $16.14 per share over the past 60 days.

ABBV Estimate Movement

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Price Performance and Valuation of PFE & ABBV

In the past year, while PFE stock has risen 24.2%, AbbVie stock has jumped 21.3%. The industry has returned 25.8% in the said time frame.

Image Source: Zacks Investment Research

Pfizer looks more attractive than AbbVie from a valuation standpoint. Going by the price/earnings ratio, AbbVie’s shares currently trade at 14.14 forward earnings, lower than 17.42 for the industry. However, ABBV currently trades higher than its five-year mean of 13.81. Pfizer’s shares currently trade at 9.29 forward earnings, lower than the industry. PFE also trades below the stock’s five-year mean of 10.06.

Image Source: Zacks Investment Research

AbbVie’s dividend yield is 3.2%, while Pfizer’s is 6.3%.

Image Source: Zacks Investment Research

PFE or ABBV: Which is a Better Pick?

AbbVie and Pfizer have a Zacks Rank #3 (Hold) each at present, which makes choosing one stock a difficult task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

After taking a hit over the past three years largely due to a sharp decline in sales of its COVID-related products, Pfizer’s stock is gradually recovering. 

However, Pfizer’s upcoming LOE cliff is a major factor that tilts us in favor of AbbVie, despite Pfizer’s better stock performance, valuation and dividend yield.  AbbVie has faced Humira’s patent cliff quite well and looks well-positioned for continued strong growth in the years ahead. ABBV delivered robust net sales growth in 2025, which is just the second full year following the Humira LOE in the United States. AbbVie expects another year of robust growth in 2026. It expects total revenues to rise approximately 9.5% in 2026.

It expects high single-digit revenue growth through 2029, as the company has no significant LOE events for the rest of this decade. A substantial portion of this growth is expected to be driven by the robust performance of Skyrizi and Rinvoq. With no significant LOEs expected this decade, AbbVie has the flexibility to invest more in R&D and continue acquiring external innovations.