Pfizer 2025 Q1 Earnings Mixed Results as Net Income Falls 5%
Daily EarningsWednesday, Apr 30, 2025 3:53 am ET
54min readPfizer (PFE), ranking 93rd by market capitalization, reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. Pfizer's Q1 earnings per share of $0.92 exceeded analysts' expectations of $0.64, marking a 43% surprise. Despite the earnings beat, revenues of $13.71 billion fell short of the $13.83 billion forecast, missing estimates by $120 million. The company reaffirmed its full-year 2025 guidance, projecting revenues between $61 billion and $64 billion and adjusted EPS ranging from $2.80 to $3.00, in line with previous forecasts.
Revenue
Pfizer's total revenue for Q1 2025 experienced a 7.8% decline, reaching $13.71 billion compared to $14.88 billion in the same quarter of the previous year. The company's product revenues amounted to $11.29 billion, while alliance revenues contributed $2.11 billion. Additionally, royalty revenues stood at $308 million.
Earnings/Net Income
Pfizer's EPS declined 5.5% to $0.52 in 2025 Q1 from $0.55 in 2024 Q1. Meanwhile, the company's net income declined to $2.97 billion in 2025 Q1, down 4.8% from $3.12 billion reported in 2024 Q1. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience.
Post Earnings Price Action Review
Following Pfizer's earnings report, historical analysis indicates a generally negative short-term market reaction. In the days immediately after earnings announcements, the stock's performance tends to underwhelm, with a 3-Day win rate at 47.05%, a 10-Day win rate at 44.34%, and a 30-Day win rate at 42.66%. The maximum return observed was a mere -0.02% over a 30-day period, suggesting that the disclosure of earnings reports typically leads to short-term underperformance. Despite this trend, Pfizer's shares showed some resilience, suggesting that while initial reactions are subdued, there is potential for recovery as investors digest the detailed financial results.
CEO Commentary
Dr. Albert Bourla, Chairman and CEO of Pfizer, emphasized the company's disciplined execution against strategic priorities, highlighting the ongoing strengthening of the R&D organization and improved productivity. He noted that despite challenges from an uncertain external environment, Pfizer's underlying business remains robust, allowing for agility in navigating market dynamics. Bourla expressed confidence in the company's ability to continue making a positive impact for patients while delivering on financial commitments, particularly focusing on enhancing operational efficiency and maintaining a strong product portfolio.
Guidance
Pfizer reaffirms its 2025 financial guidance, projecting revenues between $61 billion and $64 billion and adjusted diluted EPS in the range of $2.80 to $3.00. The company anticipates achieving approximately $4.5 billion in net cost savings by the end of 2025, with an additional $1.2 billion expected by 2027, driven by ongoing cost realignment initiatives and operational efficiencies.
Additional News
In recent corporate developments, Pfizer announced significant leadership changes in its research and development division. James List, M.D., Ph.D., has joined as Chief Internal Medicine Officer, while Jeffrey Legos, Ph.D., will take on the role of Chief Oncology Officer. These appointments aim to bolster Pfizer's pipeline and strategic focus on cardiovascular, metabolic, and oncology areas. Additionally, Pfizer completed the sale of its remaining shares in Haleon, generating approximately $3.3 billion in net proceeds. The company also continues to enhance its R&D and manufacturing capabilities through strategic investments, aiming to drive long-term growth and operational efficiencies.
Revenue
Pfizer's total revenue for Q1 2025 experienced a 7.8% decline, reaching $13.71 billion compared to $14.88 billion in the same quarter of the previous year. The company's product revenues amounted to $11.29 billion, while alliance revenues contributed $2.11 billion. Additionally, royalty revenues stood at $308 million.
Earnings/Net Income
Pfizer's EPS declined 5.5% to $0.52 in 2025 Q1 from $0.55 in 2024 Q1. Meanwhile, the company's net income declined to $2.97 billion in 2025 Q1, down 4.8% from $3.12 billion reported in 2024 Q1. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience.
Post Earnings Price Action Review
Following Pfizer's earnings report, historical analysis indicates a generally negative short-term market reaction. In the days immediately after earnings announcements, the stock's performance tends to underwhelm, with a 3-Day win rate at 47.05%, a 10-Day win rate at 44.34%, and a 30-Day win rate at 42.66%. The maximum return observed was a mere -0.02% over a 30-day period, suggesting that the disclosure of earnings reports typically leads to short-term underperformance. Despite this trend, Pfizer's shares showed some resilience, suggesting that while initial reactions are subdued, there is potential for recovery as investors digest the detailed financial results.
CEO Commentary
Dr. Albert Bourla, Chairman and CEO of Pfizer, emphasized the company's disciplined execution against strategic priorities, highlighting the ongoing strengthening of the R&D organization and improved productivity. He noted that despite challenges from an uncertain external environment, Pfizer's underlying business remains robust, allowing for agility in navigating market dynamics. Bourla expressed confidence in the company's ability to continue making a positive impact for patients while delivering on financial commitments, particularly focusing on enhancing operational efficiency and maintaining a strong product portfolio.
Guidance
Pfizer reaffirms its 2025 financial guidance, projecting revenues between $61 billion and $64 billion and adjusted diluted EPS in the range of $2.80 to $3.00. The company anticipates achieving approximately $4.5 billion in net cost savings by the end of 2025, with an additional $1.2 billion expected by 2027, driven by ongoing cost realignment initiatives and operational efficiencies.
Additional News
In recent corporate developments, Pfizer announced significant leadership changes in its research and development division. James List, M.D., Ph.D., has joined as Chief Internal Medicine Officer, while Jeffrey Legos, Ph.D., will take on the role of Chief Oncology Officer. These appointments aim to bolster Pfizer's pipeline and strategic focus on cardiovascular, metabolic, and oncology areas. Additionally, Pfizer completed the sale of its remaining shares in Haleon, generating approximately $3.3 billion in net proceeds. The company also continues to enhance its R&D and manufacturing capabilities through strategic investments, aiming to drive long-term growth and operational efficiencies.
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