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Pfizer Inc. (NYSE: PFE) has released its financial results for the first quarter of 2025, showcasing a solid performance despite a challenging market environment. The company also reaffirmed its guidance for the remainder of the year, emphasizing its strategic focus on research and development along with operational efficiencies.
 

Pfizer Reports Revenues of $13.7 Billion for Q1, Down 8% y/y

Pfizer reported revenues of $13.7 billion for the first quarter of 2025, reflecting an 8% decrease compared to the same period in 2024. This decline was primarily attributed to reduced sales of Paxlovid, which saw a significant drop of 75% in global revenue. Despite this, the company delivered an adjusted diluted EPS of $0.92, exceeding the expected $0.717, showcasing strong operational efficiency and cost management.

The quarter’s performance was also characterized by a 12% increase in adjusted income, reaching $5.237 billion, compared to $4.674 billion in the previous year. This growth was driven by higher revenues from products like the Vyndaqel family, which saw a 33% operational increase, and Comirnaty, which experienced a 62% operational rise. However, the overall revenue fell short of the anticipated $14.38 billion, largely due to the challenges in the U.S. Medicare Part D landscape and the impact of higher manufacturer discounts.

Despite the revenue shortfall, Pfizer’s strategic focus on operational efficiency enabled it to reduce costs significantly. The company reported a 16% decrease in the cost of sales and a 12% reduction in R&D expenses, contributing to the overall positive earnings performance. These cost savings were part of Pfizer’s ongoing cost realignment program, which aims to deliver approximately $4.5 billion in net savings by the end of 2025.
 

Pfizer Reaffirms Full Year Guidance for 2025, Projects Revenue Between $61-$64 Billion

Looking ahead, Pfizer has reaffirmed its full-year 2025 financial guidance, projecting revenues in the range of $61.0 to $64.0 billion and adjusted diluted EPS between $2.80 and $3.00. The company’s confidence in achieving these targets is bolstered by its commitment to reinvesting cost savings into its R&D pipeline, with plans to realize an additional $1.2 billion in net savings by 2027 through enhanced digital enablement and process simplification.

Pfizer’s strategic focus on R&D is evident in its recent developments, including the expansion of its cost realignment program to drive further productivity and operational efficiencies. The company anticipates realizing $500 million in cost savings from R&D reorganization by the end of 2026, with these savings earmarked for reinvestment into its pipeline. This approach underscores Pfizer’s dedication to maintaining a robust pipeline of innovative products and therapies.

Additionally, Pfizer’s capital allocation strategy remains balanced, with significant investments in internal R&D projects and business development transactions. The company has also prioritized returning capital to shareholders through cash dividends, totaling $2.4 billion in the first quarter of 2025. While no share repurchases are planned for the year, Pfizer continues to focus on deleveraging and maintaining financial flexibility to support potential value-creating business development opportunities.

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