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Pfizer or AbbVie: Which Big Pharma Stock Is the Better Pick?
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Key Takeaways
AbbVie's Skyrizi and Rinvoq sales are expected to top $31 billion in 2026, growing more than 20%.
Pfizer is rebuilding growth through new launches, acquisitions and pipelines in oncology and obesity.
Pfizer expects its recent launches and acquisitions to help drive a return to growth from 2029 onward.
Pfizer (PFE - Free Report) and AbbVie (ABBV - Free Report) are two major U.S. drugmakers with diversified portfolios spanning several key therapeutic areas. Oncology accounts for roughly 27% of Pfizer’s total revenues, while the company also has established franchises in inflammation and immunology, rare diseases and vaccines.
AbbVie, in contrast, has a strong presence in immunology, oncology and neuroscience, complemented by businesses in aesthetics and eye care. The company’s newer immunology drugs, Skyrizi and Rinvoq, have more than offset the impact of Humira’s loss of exclusivity (LOE), helping immunology account for about half of AbbVie’s total revenues.
Both companies have extensive R&D pipelines, offering multiple opportunities to replenish their portfolios and support future growth. However, their growth drivers, financial profiles and risk factors differ. A closer look at their fundamentals, pipeline prospects, valuations and key challenges can help investors assess which stock currently offers the more attractive opportunity.
The Case for PFE Stock
Pfizer's business mix has changed significantly over the past few years. During the pandemic, the company became heavily dependent on COVID-19 products. However, the company is gradually diversifying its portfolio through a combination of internal product launches like Abrysvo, Zavzpret, Elrexfio, Hympavzi, Litfulo and others, strategic acquisitions like Seagen, Metsera and Biohaven and the continued growth of several established brands like Vyndaqel, Padcev and Eliquis.
Pfizer expects its recently launched and acquired products to record continued double-digit growth. Reflecting this trend, sales from these products increased 22% operationally in the first quarter of 2026 and 18% in the second quarter.
Pfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline. Its oncology revenues grew 5% in the first half of 2026, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.
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. Pfizer plans 10 phase III studies for berobenatide for obesity and obesity-related comorbidities, including knee osteoarthritis and obstructive sleep apnea. Three phase III studies on berobenatide have already begun. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028.
A key candidate in its oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer offers one of the highest dividend yields in the sector.
The company faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the loss of exclusivity (LOE) cliff 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 $1.1 billion in 2026. Sales of its COVID products also continue to decline.
Pfizer’s revenue guidance for 2026 indicates mostly flat to slightly negative year-over-year growth.
Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years, starting from year-end 2028. Pfizer expects its recently launched and acquired products, along with a strong pipeline, to help it return to growth from 2029 onward.
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.
In 2026, AbbVie expects combined Skyrizi and Rinvoq sales of more than $31 billion, with the combined drugs generating $14.6 billion in sales in the first half. Combined, Skyrizi and Rinvoq are expected to deliver more than 20% growth in 2026.
However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years. Moreover, the launch of J&J’s (JNJ - Free Report) new oral pill for moderate-to-severe plaque psoriasis, Icotyde, has increased competitive pressure for Skyrizi, which can impact the product’s prescription trends. However, AbbVie seems confident that it can navigate competition from J&J’s Icotyde.
AbbVie is also benefiting from strong momentum outside immunology. The oncology franchise remains anchored by Venclexta and Elahere, while the neuroscience portfolio is also contributing to top-line growth, driven by higher sales of Botox Therapeutic, depression drug Vraylar, newer migraine drugs Ubrelvy and Qulipta and new Parkinson’s disease drug Vyalev.
The company has been on an acquisition spree over the past couple of years to bolster the early-stage pipeline that should drive long-term growth. It is signing several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience. The recent acquisition of Apogee Therapeutics has strengthened its late-stage immunology pipeline.
AbbVie boasts a robust pipeline and expects important data readouts, regulatory submissions and approvals over the next couple of years.
The company faces some near-term headwinds like Humira’s biosimilar erosion, slowdown in oncology sales and soft sales of its Aesthetics unit for the past couple of years due to continued macro challenges and economic headwinds.
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 0.2% and 7.5%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $2.96 per share to $2.98 per share, while that for 2027 has risen from $2.85 per share to $2.94 per share over the past 60 days.
PFE Estimate Movement
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AbbVie’s 2026 sales and EPS implies a year-over-year increase of 10.5% and 40.50%, respectively. The Zacks Consensus Estimate for 2026 earnings has declined from $14.19 per share to $14.05, while that for 2027 has decreased from $16.19 to $16.15 per share over the past 60 days.
ABBV Estimate Movement
Image Source: Zacks Investment Research
Price Performance and Valuation of PFE & ABBV
So far this year, while PFE stock has risen 13.2%, AbbVie stock has jumped 16.0%. The industry has returned 12.7% 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 17.01 forward earnings, lower than 18.24 for the industry. However, ABBV currently trades higher than its five-year mean of 14.13. Pfizer’s shares currently trade at 9.56 forward earnings, lower than the industry. PFE trades slightly above the stock’s five-year mean of 9.25.
Image Source: Zacks Investment Research
AbbVie’s dividend yield is 1.9%, while Pfizer’s is 6.1%.
However, if one has to choose between the two based on the current fundamentals, one should favor AbbVie, as its growth profile is more visible, with Skyrizi and Rinvoq continuing to post strong double-digit growth and successfully offsetting Humira’s LOE impact. AbbVie expects total revenues to rise around 10% in 2026, backed mainly by significant momentum in immunology and neuroscience products, which are demonstrating significant growth and delivering share gains in growing markets. It also expects high single-digit revenue growth through 2029.
On the other hand, 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, the market is still 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 acquisitions.
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Pfizer or AbbVie: Which Big Pharma Stock Is the Better Pick?
Key Takeaways
Pfizer (PFE - Free Report) and AbbVie (ABBV - Free Report) are two major U.S. drugmakers with diversified portfolios spanning several key therapeutic areas. Oncology accounts for roughly 27% of Pfizer’s total revenues, while the company also has established franchises in inflammation and immunology, rare diseases and vaccines.
AbbVie, in contrast, has a strong presence in immunology, oncology and neuroscience, complemented by businesses in aesthetics and eye care. The company’s newer immunology drugs, Skyrizi and Rinvoq, have more than offset the impact of Humira’s loss of exclusivity (LOE), helping immunology account for about half of AbbVie’s total revenues.
Both companies have extensive R&D pipelines, offering multiple opportunities to replenish their portfolios and support future growth. However, their growth drivers, financial profiles and risk factors differ. A closer look at their fundamentals, pipeline prospects, valuations and key challenges can help investors assess which stock currently offers the more attractive opportunity.
The Case for PFE Stock
Pfizer's business mix has changed significantly over the past few years. During the pandemic, the company became heavily dependent on COVID-19 products. However, the company is gradually diversifying its portfolio through a combination of internal product launches like Abrysvo, Zavzpret, Elrexfio, Hympavzi, Litfulo and others, strategic acquisitions like Seagen, Metsera and Biohaven and the continued growth of several established brands like Vyndaqel, Padcev and Eliquis.
Pfizer expects its recently launched and acquired products to record continued double-digit growth. Reflecting this trend, sales from these products increased 22% operationally in the first quarter of 2026 and 18% in the second quarter.
Pfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline. Its oncology revenues grew 5% in the first half of 2026, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.
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. Pfizer plans 10 phase III studies for berobenatide for obesity and obesity-related comorbidities, including knee osteoarthritis and obstructive sleep apnea. Three phase III studies on berobenatide have already begun. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028.
A key candidate in its oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.
Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer offers one of the highest dividend yields in the sector.
The company faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the loss of exclusivity (LOE) cliff 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 $1.1 billion in 2026. Sales of its COVID products also continue to decline.
Pfizer’s revenue guidance for 2026 indicates mostly flat to slightly negative year-over-year growth.
Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years, starting from year-end 2028. Pfizer expects its recently launched and acquired products, along with a strong pipeline, to help it return to growth from 2029 onward.
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.
In 2026, AbbVie expects combined Skyrizi and Rinvoq sales of more than $31 billion, with the combined drugs generating $14.6 billion in sales in the first half. Combined, Skyrizi and Rinvoq are expected to deliver more than 20% growth in 2026.
However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years. Moreover, the launch of J&J’s (JNJ - Free Report) new oral pill for moderate-to-severe plaque psoriasis, Icotyde, has increased competitive pressure for Skyrizi, which can impact the product’s prescription trends. However, AbbVie seems confident that it can navigate competition from J&J’s Icotyde.
AbbVie is also benefiting from strong momentum outside immunology. The oncology franchise remains anchored by Venclexta and Elahere, while the neuroscience portfolio is also contributing to top-line growth, driven by higher sales of Botox Therapeutic, depression drug Vraylar, newer migraine drugs Ubrelvy and Qulipta and new Parkinson’s disease drug Vyalev.
The company has been on an acquisition spree over the past couple of years to bolster the early-stage pipeline that should drive long-term growth. It is signing several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience. The recent acquisition of Apogee Therapeutics has strengthened its late-stage immunology pipeline.
AbbVie boasts a robust pipeline and expects important data readouts, regulatory submissions and approvals over the next couple of years.
The company faces some near-term headwinds like Humira’s biosimilar erosion, slowdown in oncology sales and soft sales of its Aesthetics unit for the past couple of years due to continued macro challenges and economic headwinds.
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 0.2% and 7.5%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $2.96 per share to $2.98 per share, while that for 2027 has risen from $2.85 per share to $2.94 per share over the past 60 days.
PFE Estimate Movement
The Zacks Consensus Estimate for AbbVie’s 2026 sales and EPS implies a year-over-year increase of 10.5% and 40.50%, respectively. The Zacks Consensus Estimate for 2026 earnings has declined from $14.19 per share to $14.05, while that for 2027 has decreased from $16.19 to $16.15 per share over the past 60 days.
ABBV Estimate Movement
Price Performance and Valuation of PFE & ABBV
So far this year, while PFE stock has risen 13.2%, AbbVie stock has jumped 16.0%. The industry has returned 12.7% in the said time frame.
Pfizer looks more attractive than AbbVie from a valuation standpoint. Going by the price/earnings ratio, AbbVie’s shares currently trade at 17.01 forward earnings, lower than 18.24 for the industry. However, ABBV currently trades higher than its five-year mean of 14.13. Pfizer’s shares currently trade at 9.56 forward earnings, lower than the industry. PFE trades slightly above the stock’s five-year mean of 9.25.
AbbVie’s dividend yield is 1.9%, while Pfizer’s is 6.1%.
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.
However, if one has to choose between the two based on the current fundamentals, one should favor AbbVie, as its growth profile is more visible, with Skyrizi and Rinvoq continuing to post strong double-digit growth and successfully offsetting Humira’s LOE impact. AbbVie expects total revenues to rise around 10% in 2026, backed mainly by significant momentum in immunology and neuroscience products, which are demonstrating significant growth and delivering share gains in growing markets. It also expects high single-digit revenue growth through 2029.
On the other hand, 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, the market is still 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 acquisitions.