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Pfizer (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. On the bottom line, Pfizer delivered adjusted earnings per share (EPS) of 69 cents, beating estimates of 57 cents. Highlighting the report was Pfizer’s announcement of positive topline results from the Phase 2b study for its lead GLP-1 drug candidate.
PFE stock closed up 4% on Feb. 4 as analysts and investors had an opportunity to digest 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 starts 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 at a rapid pace. In fact, data shows that the global GLP-1 market will grow from $62.2 billion in 2025 to $157 billion by 2035.
That is good for a compound annual growth rate (CAGR) of 9.7%, and why billions of dollars are flooding into the industry from companies looking to carve out their own slice of market share.
For Pfizer, that comes from its lead GLP-1 candidate, MET-097i. The company announced results from its Phase 2b VESPER-3 study. The trial met its primary endpoint and showed a statistically significant, placebo-adjusted weight loss of up to 12.3% at 28 weeks.
Pfizer also highlighted that patients continued to lose weight after transitioning from weekly to monthly dosing, with no plateau observed by the end of the 28 weeks.
The Growth Driver Investors May Be Missing
Immediately after the report, conventional wisdom pointed to the positive clinical trial results as the cause for the stock’s gain. That may be true, but if so, investors should note that it’s a sugar high.
While Pfizer’s drugs show promise, it will take time for that to translate to the company’s balance sheet. Plus, the GLP-1 trade, while not necessarily getting crowded, is expanding. And as the earnings report from Eli Lilly & Co. NYSE: LLY shows, the largest Big Pharma member isn’t planning to give up its obesity drug leadership role anytime soon.
However, there are other reasons to be bullish on PFE. Specifically, that comes from the company’s oncology portfolio. Data from Business Research Insights values the global oncology drugs market at approximately $264.92 billion in 2026. That’s 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 has approximately 60 candidates in its product portfolio, which translates to just as many opportunities to capture market share. The company’s portfolio was enhanced tremendously after its acquisition of Seagen in 2023.
Today, Pfizer’s portfolio combines both late-stage candidates, such as Vepdegestrant, a next-gen targeted protein degrader (PROTAC), paired with atirmociclib, a selective CDK4 inhibitor, to tackle ER+/HER2- metastatic breast cancer in later-stage trials.
Pfizer has two other candidates in late-stage trials, including:
- Sigvotatug vedotin, an antibody-drug conjugate (ADC), is in Phase 3 testing (e.g., Be6A LUNG-01) against metastatic non-small cell lung cancer, leveraging Pfizer’s Seagen-acquired ADC expertise.
- Sasanlimab targets bladder cancer, while the bispecific PD-1xVEGF agent (PF-4404) combines with Padcev to treat urothelial cancer, positioning these treatments for potential blockbusters amid oncology growth.
But as noted earlier, Pfizer could be bringing multiple drugs to market in the next five to 10 years. That’s where the story gets even better with the company’s commitment to artificial intelligence (AI), which is becoming essential to many stocks in the biopharmaceutical sector.
Pfizer integrates AI across R&D via partnerships like Boltz for biomolecular modeling, XtalPi for molecular design, and Data4Cure for oncology data analytics, speeding target identification by at least 50% with tools like 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 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 refining preclinical decisions and trials, making it a core competitive edge rather than optional hype. Pfizer has positioned itself at the forefront of those AI adoption efforts, which should provide a boon to investors in the medium and long terms.