On August 5, 2025 Pfizer Inc. (NYSE: PFE) reported financial results for the second quarter of 2025 and reaffirmed its 2025 Revenue guidance while raising guidance(1) for Adjusted(2) diluted EPS (Press release, Pfizer, AUG 5, 2025, View Source [SID1234654793]).

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EXECUTIVE COMMENTARY

Dr. Albert Bourla, Chairman and CEO of Pfizer:

"Pfizer had another strong quarter of focused execution and we’re pleased with our progress in advancing our R&D pipeline, driving our commercial performance and expanding our margins. We continue to strengthen our company for the future and we’re confident in our ability to create further value for patients and our shareholders."
David Denton, CFO and EVP of Pfizer:
"Our robust second-quarter Revenue and EPS performance demonstrates our continued focus on commercial execution and operational efficiency. We raised our full-year 2025 Adjusted diluted EPS guidance, demonstrating confidence in our ability to execute against our strategic priorities and deliver strong results for shareholders."
OVERALL RESULTS
■Second-Quarter 2025 Revenues of $14.7 Billion, Representing 10% Year-over-Year Operational Growth
■Second-Quarter 2025 Reported(3) Diluted EPS of $0.51, and Adjusted(2) Diluted EPS of $0.78
■Reaffirms Full-Year 2025 Revenue Guidance(1) in a Range of $61.0 to $64.0 Billion
■Raises Full-Year 2025 Adjusted(2) Diluted EPS Guidance(1) by $0.10 to a Range of $2.90 to $3.10, which Absorbs a One-Time Impact of Approximately $0.20 Related to 3SBio Transaction
■On Track to Deliver Approximately $7.2 Billion in Overall Anticipated Net Cost Savings from Previously Announced Cost Improvement Initiatives(4) by End of 2027, Driving Productivity Gains and Operating Margin Expansion

Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. References to operational variances pertain to period-over-period changes that exclude the impact of foreign exchange rates(5).
Results for the second quarter and first six months of 2025 and 2024(6) are summarized below.
($ in millions, except per share amounts)
Second-Quarter Six Months
2025 2024
% Change
2025 2024
% Change
Revenues $ 14,653 $ 13,283 10% $ 28,367 $ 28,162 1%
Reported(3) Net Income
2,910 41 * 5,877 3,156 86%
Reported(3) Diluted EPS
0.51 0.01 * 1.03 0.55 86%
Adjusted(2) Income
4,434 3,400 30% 9,671 8,074 20%
Adjusted(2) Diluted EPS
0.78 0.60 30% 1.69 1.42 20%
* Indicates calculation not meaningful or results are greater than 100%.

REVENUES
($ in millions) Second-Quarter Six Months
2025 2024 % Change 2025 2024 % Change
Total Oper. Total Oper.
Global Biopharmaceuticals Business (Biopharma) $ 14,305 $ 12,991 10% 10% $ 27,746 $ 27,595 1% 1%
Pfizer CentreOne (PC1) 328 278 18% 18% 585 535 9% 10%
Pfizer Ignite 20 15 38% 38% 37 32 16% 16%
TOTAL REVENUES $ 14,653 $ 13,283 10% 10% $ 28,367 $ 28,162 1% 2%
2025 FINANCIAL GUIDANCE(1)
■Reaffirms full-year 2025 Revenue guidance and raises Adjusted(2) diluted EPS guidance(1) by $0.10 at the midpoint to a range of $2.90 to $3.10.
■The updated 2025 Adjusted(2) diluted EPS guidance takes into consideration our strong year-to-date performance, continued confidence in our business, a favorable impact from foreign exchange, progress with ongoing cost improvement initiatives, and improvement in our effective tax rate.
–Includes a one-time $1.35 billion Acquired In-Process R&D charge related to the licensing agreement with 3SBio, Inc. that will be recorded in the third quarter of 2025 with an expected unfavorable impact of approximately $0.20.
■The company’s guidance absorbs the impact of the currently imposed tariffs from China, Canada, and Mexico, as well as potential price changes this year based on the letter received on July 31, 2025 from President Trump.
Revenues
$61.0 to $64.0 billion
Adjusted(2) SI&A Expenses
$13.1 to $14.1 billion
(previously $13.3 to $14.3 billion)
Adjusted(2) R&D Expenses
$10.4 to $11.4 billion
(previously $10.7 to $11.7 billion)
Effective Tax Rate on Adjusted(2) Income
Approximately 13.0%
(previously approximately 15.0%)
Adjusted(2) Diluted EPS
$2.90 to $3.10
(previously $2.80 to $3.00)

CAPITAL ALLOCATION
During the first six months of 2025, Pfizer deployed its capital in a variety of ways, which primarily included:
▪Reinvesting capital into initiatives intended to enhance the future growth prospects of the company, including:
•$4.7 billion invested in internal research and development projects, and
•Approximately $150 million invested in business development transactions. Separately, the completed 3SBio transaction will be recorded in third-quarter 2025.
▪Returning capital directly to shareholders through $4.9 billion of cash dividends, or $0.86 per share of common stock.

No share repurchases have been completed to date in 2025. As of August 5, 2025, Pfizer’s remaining share repurchase authorization is $3.3 billion. Current financial guidance does not anticipate any share repurchases in 2025. The company expects to continue to de-lever in a prudent manner in order to maintain a balanced capital allocation strategy. This includes maintaining the flexibility to deploy capital towards potential value-creating business development transactions and the potential to return capital to shareholders through share repurchases.
Diluted weighted-average shares outstanding of 5,706 million and 5,696 million were used to calculate Reported(3) and Adjusted(2) diluted EPS for second-quarter 2025 and 2024, respectively.
QUARTERLY FINANCIAL HIGHLIGHTS (Second-Quarter 2025 vs. Second-Quarter 2024)
Second-quarter 2025 revenues totaled $14.7 billion, an increase of $1.4 billion, or 10%, compared to the prior-year quarter, reflecting an operational increase of $1.3 billion, or 10%, as well as a favorable impact of foreign exchange of $22 million. The operational increase was primarily driven by an increase in revenues for the Vyndaqel family, Comirnaty, Paxlovid, Padcev, Eliquis and several other products across categories despite the unfavorable impact of higher manufacturer discounts resulting from the Inflation Reduction Act (IRA) Medicare Part D Redesign.
Second-quarter 2025 operational revenue growth was driven primarily by:
▪Vyndaqel family (Vyndaqel, Vyndamax, Vynmac) globally, up 21% operationally, driven largely by strong demand with continuing uptake in patient diagnosis primarily in the U.S. and certain international developed markets, partially offset by lower net price in the U.S. mostly due to the impact of higher manufacturer discounts resulting from the IRA Medicare Part D Redesign;
▪Comirnaty globally, up 95% operationally, driven primarily by higher net revenues in the U.S. partially due to higher market share, as well as higher contractual deliveries in certain international markets;
▪Paxlovid globally, up 71% operationally, driven primarily by higher net price in the U.S. following the transition from the U.S. government agreement as well as a favorable adjustment of rebate accruals related to prior periods, partially offset by lower COVID-19 infections across the U.S. and certain international markets as well as lower international government purchases;
▪Padcev globally, up 38% operationally, driven primarily by increased market share in first-line locally advanced or metastatic urothelial cancer (la/mUC), as well as a one-time favorable impact associated with the transition to a wholesaler distribution model in the U.S.;
▪Eliquis globally, up 6% operationally, driven primarily by higher demand globally; partially offset by lower net price in the U.S., including the impact of higher manufacturer discounts resulting from the IRA Medicare Part D Redesign, and price erosion in certain international markets;
▪Abrysvo globally, up 155% (or up $86 million) operationally, driven primarily by higher U.S. revenues from both a favorable net sales adjustment and higher demand for the maternal indication that more than offset ower vaccination rates for the older adult indication following an updated Advisory Committee on Immunization Practices (ACIP) recommendation; as well as launch uptake for both the adult and maternal indications in certain international markets; and
▪Lorbrena globally, up 48% operationally, driven primarily by increased patient share in the first-line ALK-positive metastatic non-small cell lung cancer (ALK+ mNSCLC) treatment setting in the U.S., China, and certain other international markets, partially offset by lower net price in the U.S. mainly due to the impact of higher manufacturer discounts resulting from the IRA Medicare Part D Redesign;
partially offset primarily by lower revenues for:
▪Ibrance globally, down 8% operationally, driven primarily by lower net price in the U.S. largely due to the impact of higher manufacturer discounts resulting from the IRA Medicare Part D Redesign, as well as generic entry and timing of shipments in certain international markets.
GAAP Reported(3) Statement of Operations Highlights
SELECTED REPORTED(3) COSTS AND EXPENSES
($ in millions) Second-Quarter Six Months
2025 2024 % Change 2025 2024 % Change
Total Oper. Total Oper.
Cost of Sales(3)
$ 3,778 $ 3,300 15% 13% $ 6,624 $ 6,679 (1%) 1%
Percent of Revenues
25.8 % 24.8 % N/A N/A 23.4 % 23.7 % N/A N/A
SI&A Expenses(3)
3,415 3,717 (8%) (8%) 6,446 7,212 (11%) (10%)
R&D Expenses(3)
2,482 2,696 (8%) (8%) 4,685 5,189 (10%) (10%)
Acquired IPR&D Expenses(3)
2 6 (68%) (68%) 11 6 72% 72%
Other (Income)/Deductions—net(3)
739 1,107 (33%) (33%) 1,692 1,787 (5%) —
Effective Tax Rate on Reported(3) Income
4.6 % 130.2 % (0.8 %) 4.8%

Second-quarter 2025 Cost of Sales(3) as a percentage of revenues increased by 0.9 percentage points compared to the prior-year quarter, driven primarily by the non-recurrence of a favorable revision to accrued royalties recorded in the second quarter of 2024, partially offset by lower amortization from the step-up of acquired inventory.
Second-quarter 2025 SI&A Expenses(3) decreased 8% operationally compared with the prior-year quarter, primarily reflecting focused investments and ongoing productivity improvements that drove a decrease in marketing and promotional spend for various products and lower spending in corporate enabling functions.
Second-quarter 2025 R&D Expenses(3) decreased 8% operationally compared with the prior-year quarter, driven primarily by a net decrease in spending due to pipeline focus and optimization, as well as lower compensation-related expenses.