Pfizer 2025 Q1 Earnings Misses Targets as Net Income Declines 5%

Pfizer (PFE), ranking 91st by market capitalization reported its fiscal 2025 Q1 earnings on May 05th, 2025. Pfizer's earnings report revealed a 5% decline in net income compared to the previous year, falling short of expectations. Despite maintaining its earnings and sales outlook for the year, the company's projections remain in line with previous guidance, forecasting revenues between $61.0 and $64.0 billion and adjusted EPS between $2.80 and $3.00. Investors remain cautious as the company navigates challenges in a dynamic market environment.

Revenue

Pfizer's revenue for the first quarter of 2025 was $13.71 billion, representing a 7.8% decrease from $14.88 billion in the first quarter of 2024. The Global Biopharmaceuticals Business contributed $13.44 billion to the total revenue. Product revenues reached $11.29 billion, and the Primary Care segment brought in $5.70 billion. Alliance revenues were recorded at $2.11 billion, while Specialty Care generated $3.99 billion in revenue. Royalty revenues amounted to $308 million, and Oncology revenues stood at $3.76 billion. Pfizer CentreOne contributed $257 million, and Pfizer Ignite added $17 million to the total, culminating in overall revenues of $13.71 billion.

Earnings/Net Income

Pfizer's earnings per share (EPS) declined by 5.5%, reaching $0.52 in Q1 2025 compared to $0.55 in Q1 2024. The company's net income also decreased by 4.8%, falling to $2.97 billion from $3.12 billion in the prior year's first quarter. Despite the decline, the EPS maintained profitability, reflecting operational resilience amidst revenue challenges.

Post-Earnings Price Action Review

Pfizer's earnings report had a varied impact on its stock price, with short-term metrics showing mixed results. The 3-Day win rate for revenue stood at 30%, indicating limited short-term gains for investors focusing on revenue metrics. The 10-Day and 30-Day win rates for both revenue and net income were higher, at 40% and 50% respectively, suggesting better medium-term prospects. The EPS reports similarly showed a 10-Day win rate of 40% and a 30-Day win rate of 50%. Overall, Pfizer's earnings reports tend to have a more positive influence on stock prices in the medium term, with the potential for maximum returns of 1.21% observed over a 30-day period.

CEO Commentary

Dr. Albert Bourla, Chairman and CEO of Pfizer, expressed confidence in the company's ability to navigate a dynamic environment while executing strategic priorities. He highlighted the continued focus on strengthening the R&D organization and improving productivity, stating, "With the underlying strength of our business, we believe we can be agile in navigating an uncertain and volatile external environment." Bourla emphasized the importance of operational efficiency and financial discipline as key drivers of the company's performance amidst revenue challenges, reinforcing a tone of optimism regarding Pfizer's resilience and adaptability.

Guidance

Pfizer reaffirms its full-year 2025 guidance, projecting revenues between $61.0 billion and $64.0 billion and adjusted diluted EPS in the range of $2.80 to $3.00. The company anticipates ongoing operational revenue growth of approximately flat to 5% from the midpoint of its 2024 baseline guidance. These targets reflect a commitment to maintaining financial discipline and operational efficiency while navigating external pressures.

Additional News

Pfizer has recently announced several significant developments in its corporate structure and strategy. In March 2025, Pfizer sold its remaining shares in Haleon, exiting its position completely and generating approximately $3.3 billion in net cash proceeds. Additionally, Pfizer has focused on strengthening its leadership team, appointing James List, M.D., Ph.D., as Chief Internal Medicine Officer and Jeffrey Legos, Ph.D., MBA, as Chief Oncology Officer. The company also declared a second-quarter 2025 dividend of $0.43 per share, payable on June 13, 2025, maintaining its long-standing tradition of rewarding shareholders. These moves reflect Pfizer's strategic focus on enhancing its growth prospects and operational efficiencies.