Pfizer Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.33%.
Did PFE Beat Earnings? Q1 2025 Results
Pfizer posted a sharply mixed first quarter, delivering a meaningful earnings beat while falling short on the top line, as the lingering shadow of Paxlovid continued to weigh on overall results. Adjusted diluted EPS came in at $0.92, well ahead of the $0.68 consensus estimate and representing a 35.19% positive surprise, yet revenue of $13.71 billion trailed the $14.09 billion analyst forecast by 2.69% and slid 7.8% from a year earlier, with Paxlovid plunging 75% operationally to $491.00 million partly because a $771.00 million favorable adjustment that had inflated the prior-year comparison did not recur. Offsetting the drag, the Vyndaqel family climbed 33% operationally to $1.49 billion and Comirnaty jumped 62% operationally to $565.00 million, while aggressive cost discipline drove double-digit declines in both SI&A and R&D spending. Pfizer also discontinued its oral GLP-1 obesity candidate danuglipron, a notable pipeline setback, though management reaffirmed full-year 2025 guidance of $61.00 billion to $64.00 billion in revenue and adjusted EPS of $2.80 to $3.00, with the CFO signaling a trend toward the upper end of that earnings range.
- Vyndaqel family growth driven by strong demand and continuing uptake in patient diagnosis
- Comirnaty growth driven by higher U.S. market share and lower expected returns
- Padcev growth driven by increased market share in first-line metastatic urothelial cancer
- Nurtec ODT/Vydura growth driven by strong U.S. demand and favorable channel mix changes
- Lorbrena growth from increased patient share in first-line ALK+ mNSCLC
- Paxlovid decline due to non-recurrence of $771M favorable adjustment, lower COVID-19 infections, and reduced government purchases
- IRA Medicare Part D Redesign creating unfavorable pricing impact across multiple products
- Ongoing cost realignment program driving SI&A and R&D expense reductions
- Favorable global income tax resolutions resulting in negative GAAP effective tax rate
“We continued to execute with focus and discipline against our strategic priorities, including strengthening our R&D organization and driving improved productivity. With the underlying strength of our business, we believe we can be agile in navigating an uncertain and volatile external environment.”
Pfizer CEO, on the earnings call
Forward Guidance & Outlook
Pfizer reaffirmed all components of its full-year 2025 financial guidance: revenues of $61.0 to $64.0 billion and Adjusted diluted EPS of $2.80 to $3.00. Adjusted SI&A expenses are guided to $13.3 to $14.3 billion, Adjusted R&D expenses to $10.7 to $11.7 billion, and the effective tax rate on Adjusted income is approximately 15.0%. The CFO noted the company is currently trending towards the upper end of the Adjusted diluted EPS guidance range. Guidance does not include any potential impact related to future tariffs and trade policy changes, which the company is unable to predict. Guidance anticipates approximately $0.6 billion of unfavorable revenue impact from generic and biosimilar competition and assumes no share repurchases in 2025. Pfizer expects to deliver approximately $4.5 billion of net cost savings from its ongoing cost realignment program by end of 2025, with an additional $1.2 billion by end of 2027 and $500 million in R&D reorganization savings by end of 2026. The manufacturing optimization program is expected to deliver approximately $1.5 billion in net cost savings by end of 2027.
PFE YoY Financials
PFE Revenue by Segment
PFE Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.