Pfizer Q1 Earnings: EPS Jumps 12% as Cost Savings Exceed Targets
Rhea-AI Summary
Pfizer reported solid Q1 2025 financial results with revenues of $13.7 billion, showing an 8% decrease from Q1 2024. The company achieved Adjusted Diluted EPS of $0.92, marking a 12% increase year-over-year.
Key highlights include:
- On track to exceed $4.5 billion in net cost savings by end of 2025
- Additional expected savings of $1.2 billion through 2027
- R&D reorganization to deliver $500 million in savings by 2026
- Manufacturing optimization to save $1.5 billion by 2027
The company reaffirmed its 2025 guidance with expected revenues of $61.0 to $64.0 billion and Adjusted Diluted EPS of $2.80 to $3.00. Notable product performance included growth in Vyndaqel family (+33%) and Comirnaty (+62%), while Paxlovid saw a 75% decline. The company maintained strong capital allocation, including $2.4 billion in cash dividends to shareholders.
Positive
- Q1 2025 Adjusted EPS of $0.92, up 12% YoY
- Adjusted Income increased 12% to $5.2B in Q1
- On track to exceed $4.5B net cost savings target by end of 2025
- Additional $1.2B cost savings expected through 2027
- Vyndaqel family revenue up 33% operationally
- Comirnaty revenue up 62% operationally
- Padcev revenue up 25% operationally
- Successfully reduced gross leverage below target
- Favorable tax rate due to global tax resolutions
Negative
- Total revenues declined 8% to $13.7B in Q1
- Paxlovid revenue dropped 75% ($1.5B decrease)
- Reported net income decreased 5% to $3.0B
- Eliquis revenue down 4% operationally
- Xeljanz revenue declined 31% operationally
- Ibrance revenue decreased 6% operationally
- No share repurchases completed in 2025
- IRA Medicare Part D Redesign causing lower net prices across multiple products
Insights
Pfizer delivers solid Q1 with 12% adjusted EPS growth despite revenue decline; cost-cutting program expanded while maintaining 2025 guidance.
Pfizer's Q1 2025 results demonstrate effective financial management amid revenue headwinds. While revenue declined
The aggressive cost optimization strategy is yielding results and expanding in scope. Beyond the
Product performance shows divergent patterns. The
The effective tax rate on adjusted income dropped substantially to
Pfizer strengthens portfolio with key regulatory wins and positive clinical data while reorganizing R&D for greater efficiency and pipeline focus.
Pfizer's Q1 update reveals meaningful progress across its regulatory and clinical development fronts. The European Commission's expanded authorization for Abrysvo to include adults 18-59 years represents a significant market opportunity in RSV prevention. This regulatory win is complemented by the CDC's ACIP vote recommending RSV vaccination for high-risk adults aged 50-59, down from the previous 60+ recommendation—effectively expanding the eligible population.
The FDA approval for Adcetris in combination with lenalidomide and rituximab for relapsed/refractory large B-cell lymphoma provides a new treatment option for patients who aren't candidates for auto-HSCT or CAR-T therapy. This addresses an important treatment gap in the LBCL landscape.
Clinical data from the Padcev plus Keytruda combination in first-line metastatic urothelial cancer showed sustained overall survival and progression-free survival benefits at extended 29.1-month median follow-up, strengthening its competitive position in this indication. Similarly, Talzenna demonstrated statistically significant and clinically meaningful overall survival improvement in combination with Xtandi in metastatic castration-resistant prostate cancer.
The announced R&D reorganization targeting
Pfizer Reports $13.7 Billion in Q1 2025 Revenue, Reaffirms Full-Year Guidance Despite Medicare Headwinds
Pfizer Inc. (NYSE: PFE) reported first-quarter 2025 financial results on April 29, showing solid earnings performance despite revenue challenges. The pharmaceutical giant posted
According to the company's release, adjusted diluted earnings per share (EPS) reached
"We continued to execute with focus and discipline against our strategic priorities, including strengthening our R&D organization and driving improved productivity," said Dr. Albert Bourla, Chairman and CEO of Pfizer, in the release. "With the underlying strength of our business, we believe we can be agile in navigating an uncertain and volatile external environment."
Chief Financial Officer David Denton noted that the company is "currently trending towards the upper end" of its 2025 adjusted diluted EPS guidance range of
Revenue Performance by Key Products
The
- The Vyndaqel family (Vyndaqel, Vyndamax, Vynmac) saw
33% operational growth globally, driven by strong demand and increased patient diagnosis in the U.S. and international markets - Comirnaty revenues increased
62% operationally, reflecting higher U.S. revenues from lower expected returns and higher market share - Padcev showed
25% operational growth, primarily from increased market share in first-line metastatic urothelial cancer - Nurtec ODT/Vydura grew
40% operationally due to strong U.S. demand and favorable channel mix - Lorbrena increased
39% operationally, driven by increased patient share in first-line ALK-positive metastatic non-small cell lung cancer
These gains were more than offset by declines in several key products:
- Paxlovid revenues fell
75% operationally, or$1.5 billion , primarily due to the non-recurrence of a$771 million favorable adjustment recorded in Q1 2024, lower COVID-19 infections, and reduced international government purchases - Eliquis revenues declined
4% operationally, reflecting lower net price in the U.S. due to higher manufacturer discounts resulting from the Inflation Reduction Act Medicare Part D Redesign - Xeljanz revenues decreased
31% operationally, mostly due to lower U.S. net price from unfavorable channel mix changes and higher Medicare Part D discounts - Ibrance revenues dropped
6% operationally, affected by generic competition in certain international markets and lower U.S. pricing
Cost Savings Initiatives Expanded
Pfizer reported it is on track to exceed its net cost savings targets, with approximately
- Additional anticipated net cost savings of approximately
$1.2 billion , primarily in Selling, Informational & Administrative (SI&A) expenses by the end of 2027 through digital enablement and process simplification - Expected R&D re-organization cost savings of approximately
$500 million by the end of 2026, with savings to be reinvested in the pipeline - Manufacturing optimization program on track to deliver approximately
$1.5 billion in net cost savings by the end of 2027, with initial savings anticipated in late 2025
2025 Financial Guidance Reaffirmed
The company reaffirmed all components of its full-year 2025 financial guidance, including:
- Revenues of
$61.0 t o$64.0 billion - Adjusted diluted EPS of
$2.80 t o$3.00 - Adjusted SI&A expenses of
$13.3 t o$14.3 billion - Adjusted R&D expenses of
$10.7 t o$11.7 billion - Effective tax rate on adjusted income of approximately
15.0%
The company noted its guidance does not include any potential impact from future tariffs and trade policy changes, which it is unable to predict at this time.
Capital Allocation
During the first quarter of 2025, Pfizer reported deploying capital in several ways:
$2.2 billion invested in internal research and development projects- Approximately
$90 million invested in business development transactions $2.4 billion returned to shareholders through cash dividends ($0.43 per share)
The company stated it has not completed any share repurchases in 2025 to date, with
According to the release, Pfizer has "actively de-levered" and is now below its previously stated gross leverage target. The company expects to continue deleveraging "in a prudent manner" while maintaining flexibility for potential business development transactions and possible future capital returns to shareholders.
Recent Product Developments
The release highlighted several recent product developments since early February 2025:
- Abrysvo: Received European Commission authorization to extend indication to include prevention of RSV lower respiratory tract disease in individuals 18-59 years of age
- Adcetris: FDA approved its use in combination with lenalidomide and a rituximab product for treatment of relapsed or refractory large B-cell lymphoma after two or more lines of therapy
- Padcev: Presented additional positive Phase 3 results showing sustained overall survival and progression-free survival benefits
- Talzenna: Announced positive overall survival results from the Phase 3 TALAPRO-2 study in patients with metastatic castration-resistant prostate cancer
This article is based solely on information provided in Pfizer's press release dated April 29, 2025. The content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. Stock Titan and its writers make no representations as to the accuracy, completeness, or timeliness of the information. Investors should conduct their own due diligence before making any investment decisions.
Source: Pfizer Inc.
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