What drove PFE's earnings growth in Q4 2024?

Pfizer's earnings growth in Q4 2024 was primarily driven by strong revenue growth across its business segments, particularly in the areas of Oncology and International markets. Here are the key factors contributing to this growth:

1. Oncology Segment Performance: Pfizer's Oncology segment experienced a 31% year-over-year growth, fueled by robust demand for key products such as XTANDI and TALZENNA. The integration of Seagen, another significant player in the oncology space, has also contributed to this segment's growth.
2. Non-COVID Products: Excluding contributions from COVID-related products Comirnaty and Paxlovid, Pfizer achieved a 14% operational growth in its non-COVID products revenue. This indicates a strong performance from its core business, reflecting the continued success of key products like Vyndaqel and Eliquis.
3. International and Emerging Markets: Pfizer's Emerging Markets segment saw a notable increase, with revenues rising to $5.64 billion, despite a 6% operational decline. This suggests that growth in other international regions, possibly driven by new product launches and market expansion, has helped offset any potential headwinds.
4. Paxlovid and COMIRNATY Sales: Although Paxlovid and COMIRNATY contributed significantly to Pfizer's revenue in Q3, their impact on Q4 growth might be less pronounced due to waning demand for COVID-related products. However, their sales figures, especially Paxlovid's $2.7 billion revenue with $442 million from the US government strategic national stockpile, highlight the substantial role they played in the quarter's performance.
5. Cost Reduction Initiatives: Pfizer's efforts to reduce costs have improved operational efficiency, which, combined with revenue growth, has positively impacted earnings. The company has set targets to deliver net cost savings of at least $5.5 billion from previously announced cost reduction initiatives.

In summary, Pfizer's Q4 2024 earnings growth is a result of strong revenue across various segments, particularly Oncology, and effective cost management.