Pfizer Q1 Earnings Beat Estimates, Several Headwinds Hurt Sales

Pfizer PFE reported first-quarter 2025 adjusted earnings per share of 92 cents, which comprehensively beat the Zacks Consensus Estimate of 64 cents per share. Earnings rose 12% year over year.

Revenues came in at $13.72 billion, down 8% from the year-ago quarter on a reported basis. Revenues reflected an operational decrease of 6% and a negative currency impact of 2%. Total revenues missed the Zacks Consensus Estimate of $13.89 billion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Revenues of products like Vyndaqel, Padcev, Lorbrena and BioNTech BNTX-partnered Comirnaty vaccine rose in the quarter. However, sales of some key products like Prevnar, Xeljanz, Eliquis and Ibrance declined in the quarter. The Medicare Part D redesign under the Inflation Reduction Act (IRA) hurt sales of higher-priced drugs like Vyndaqel, Eliquis, Ibrance and Xeljanz. Sales of the oral antiviral pill for COVID-19, Paxlovid, and the new RSV vaccine, Abrysvo, also declined in the quarter.

International revenues rose 4% on an operational basis to $5.34 billion. U.S. revenues, however, declined 12% to $8.37 billion.

Adjusted selling, informational and administrative (SI&A) expenses declined 12% (operationally) in the quarter to $3.01 billion. Adjusted R&D expenses declined 12% to $2.17 billion.

PFE’s Segment Discussion

Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment declined 20% operationally to $5.7 billion. The Specialty Care unit recorded sales of $4.0 billion, up 6%. Sales of Oncology rose 7% to $3.76 billion.

PFE Primary Care Sales

In Primary Care, alliance revenues and direct sales from Bristol-Myers BMY for blood-thinning treatment Eliquis declined 4% to $1.92 billion due to IRA-driven lower pricing, which offset the benefit from higher demand and higher revenues in international markets. Alliance revenues from Bristol-Myers-partnered Eliquis missed the Zacks Consensus Estimate of $2.0 billion as well as our model estimate of $2.28 billion.

Global Prevnar family revenues declined 1% to $1.66 billion due to competitive pressure for the adult indication. Prevnar revenues missed the Zacks Consensus Estimate of $1.69 billion as well as our model estimateof $1.73 billion. Prevnar sales rose 2% in the United States but declined 6% in international markets.

Direct sales and alliance revenues from partner BioNTech for Comirnaty were $565 million in the quarter, up 62% year over year due to lower expected returns and higher market share in the United States and higher contractual deliveries in some ex-U.S. markets. Comirnaty sales beat the Zacks Consensus Estimate of $279 million and our estimate of $209.9 million.

Paxlovid revenues were $491 million in the quarter, down 75% year over year. Paxlovid revenues missed the Zacks Consensus Estimate of $629.0 million and our model estimate of $523.4 million.

Nurtec ODT/Vydura contributed $248 million in the quarter, up 40% year over year, driven by strong demand in the United States and launches in international markets.

Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $131 million, down 6% year over year. Abrysvo revenues missed the Zacks Consensus Estimate of $158 million as well as our model estimate of $183.9 million.

PFE’s Specialty Care Sales

Global Vyndaqel family revenues of $1.49 billion rose 33% year over year, driven by continued demand growth due to increases in diagnosis and treatment rates, primarily in the United States and developed Europe, which were partially offset by higher manufacturer discounts due to the IRA Part D redesign. The Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales beat the Zacks Consensus Estimate of $1.42 billion as well as our model estimate of $1.37 billion.

Xeljanz sales declined 31% to $128 million. Enbrel revenues declined 6% to $140 million.

PFE’s Oncology Sales

Pfizer’s acquisition of Seagen in December 2023 added antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak — to its cancer portfolio. Adcetris sales of $218 million declined 15% year over year. Padcev rose 25% to $426 million. Tukysa and Tivdak contributed $102 million and $33 million, respectively, to Pfizer’s oncology revenues in the first quarter. Pfizer is particularly seeing strong demand trends for Padcev, mainly driven by increased market share in first-line metastatic urothelial cancer.

In Oncology, Ibrance revenues declined 6% year over year to $977 million due to continued competitive pressure across markets as well as generic entry in select markets and the IRA impact. Ibrance revenues beat the Zacks Consensus Estimate of $899 million as well as our estimate of $872 million.

Xtandi recorded alliance revenues of $458 million in the quarter, up 9% year over year. Inlyta revenues were $219 million in the quarter, down 6%. Lorbrena sales rose 39% to $222 million.

PFE Re-Affirms 2025 Guidance

Pfizer maintained its guidance for 2025.

Pfizer projects total revenues between $61.0 billion and $64.0 billion.

Adjusted earnings per share are expected in the range of $2.80 to $3.00. Research and development expense is expected to be in the range of $10.7 billion to $11.7 billion in 2025. SI&A spending is expected in the range of $13.3 billion to $14.3 billion. The adjusted tax rate is expected to be approximately 15% in 2025.

Our Take on PFE’s Q1 Results

Pfizer’s first-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Sales of key products like Paxlovid, Prevnar and Eliquis missed estimates, while Vyndaqel and Ibrance beat the same.

Pfizer reaffirmed its outlook for 2025. However, Pfizer’s chief financial officer David Denton said that the company is trending toward the upper end of the adjusted EPS guidance range. Shares were up slightly in pre-market trading despite the soft first-quarter performance.   

So far this year, Pfizer’s stock has declined 11.7% against an increase of 1.5% for the industry.

Pfizer faces several challenges, the key being declining sales of its COVID-19 products and U.S. Medicare Part D headwinds in 2025. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi will face patent expirations.

The company has also faced its share of setbacks. Earlier this month, Pfizer said it is discontinuing the development of its GLP-1R agonist, danuglipron, which was developed as a weight loss pill. Pfizer took the decision after one of the participants in the dose-optimization studies developed a potentially drug-induced liver injury, which resolved after danuglipron was discontinued.

Amid a volatile macro environment, Pfizer, unlike other large drugmakers like J&J JNJ and Merck, did not provide any estimate of the potential impact from future tariffs and trade policy changes. J&J, on its first-quarter call, estimated tariff-related costs of approximately $400 million, mainly from China, which will impact its business in the near term. These newly proposed and existing tariffs are expected to mainly impact its MedTech business. Merck expects $200 million in costs from tariffs implemented to date, primarily between the United States and China.

However, with COVID-related uncertainties diminishing, Pfizer’s revenue volatility is declining. Its non-COVID drugs and contribution from new and newly acquired products should continue to drive top-line growth in 2025. Also, Pfizer expects cost cuts and internal restructuring to deliver savings of $7.7 billion by the end of 2027. Continued growth in non-COVID sales and significant cost-reduction measures should drive profit growth.

PFE’s Zacks Rank

Pfizer has a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Pfizer Inc. Price and Consensus

Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research