Pfizer (PFE) is expected to report Q2 revenue in line with consensus estimates, while earnings per share are likely to come in about 3% below expectations due to an unfavorable gross margin mix and higher research and development spending to support pipeline programs, RBC Capital said in a Friday preview note.

The brokerage lowered its 2026 estimates by 1% to 2% to the lower half of Pfizer's guidance range, citing weaker-than-expected COVID product trends, continued pressure on Prevnar and Vyndaqel, and stronger performance from Eliquis and Ibrance.

The brokerage said it has lower confidence that Pfizer will raise its full-year guidance after Q2 results, citing prescription trends, and expects management to remain focused on advancing key pipeline programs while maintaining the company's dividend.

RBC maintained its sector perform rating on the stock with a $25 price target.