- Pfizer (PFE, Financial) reports Q1 2025 earnings with an adjusted EPS rise of 12%, despite an 8% decline in revenue.
- Company on track to exceed $4.5 billion in net cost savings by 2025, with additional $1.2 billion expected by 2027.
- Significant product performance with growth in Vyndaqel family (+33%) and Comirnaty (+62%), while Paxlovid declines by 75%.
Pfizer Inc. (PFE) announced its financial results for the first quarter of 2025, reporting revenues of $13.7 billion, marking an 8% decrease from the same period in 2024. Despite the revenue drop, the company achieved an adjusted diluted earnings per share (EPS) of $0.92, a 12% increase year-over-year, reflecting effective cost management and strategic business execution.
Pfizer reaffirmed its full-year guidance for 2025, projecting revenues between $61.0 billion and $64.0 billion and adjusted diluted EPS in the range of $2.80 to $3.00. The strategic focus remains on exceeding $4.5 billion in net cost savings by the end of 2025, with plans for an additional $1.2 billion in savings by 2027 through initiatives like digital enablement and process simplification.
The company's ongoing reorganization efforts also aim to save $500 million in research and development by 2026, with $1.5 billion in savings anticipated from manufacturing optimization by 2027. These measures are expected to bolster Pfizer's operational efficiency and financial resilience.
Product-wise, the Vyndaqel family experienced a 33% growth driven by robust demand and improved patient diagnosis, while Comirnaty revenues surged by 62% due to an increase in market share. Conversely, Paxlovid revenues fell 75%, significantly impacting overall revenue, attributed to the non-recurrence of prior favorable adjustments and reduced government purchases.
In terms of capital allocation, Pfizer returned $2.4 billion to shareholders in cash dividends during Q1 2025. Despite not engaging in share repurchases within the quarter, the company maintains a balanced capital deployment strategy, supporting internal R&D and exploring potential business development opportunities.
Looking forward, Pfizer remains focused on navigating through the dynamic market environment, leveraging its strong product portfolio and enhanced operational strategies to sustain its growth trajectory amid external challenges.
