Total Revenue

Declined from $15,775 million in Q1 2024 to $15,529 million in Q1 2025 (-1.6%)

Total revenue fell modestly due to weaker performance in key geographic regions—most notably a dramatic decline in China and a reduction in Japan revenue—despite strong U.S. sales growth, indicating that regional disparities drove the overall decline. " "

Pharmaceutical Segment Revenue

Decreased from $14,006 million in Q1 2024 to $13,638 million in Q1 2025 (-2.7%)

Pharmaceutical revenue dropped as declines in vaccines, virology (e.g., Lagevrio), and immunology (due to marketing rights reverting) weighed on performance in this segment, even though oncology products helped partially offset the weakness observed in earlier periods. " "

Animal Health Segment Revenue

Increased from $1,511 million in Q1 2024 to $1,588 million in Q1 2025 (+5.1%)

Animal Health revenue grew driven by a 9% increase in livestock product sales and sustained performance post the Elanco aqua business acquisition, building on modestly positive growth trends seen previously. " "

United States Revenue

Increased from $7,478 million in Q1 2024 to $8,522 million in Q1 2025 (~14% increase)

U.S. revenue surged due to strong performance in core areas such as oncology (Keytruda and Welireg), as well as effective pricing strategies that improved net sales in the context of the prior period’s lower performance for some products like Januvia. " "

China Revenue

Dropped from $1,772 million in Q1 2024 to $702 million in Q1 2025 (nearly 60% decrease)

China revenue plummeted primarily due to a significant decline in Gardasil/Gardasil 9 sales—exacerbated by elevated distributor inventory levels and the company’s decision to pause shipments—reflecting challenges that had not been as pronounced in the previous period. " "

Japan Revenue

Declined from $821 million in Q1 2024 to $669 million in Q1 2025 (about 18.5% decrease)

Japan revenue contracted largely because of lower sales of products like Bridion (impacted by generic competition following market exclusivity expiry) and a reduction in Gardasil sales, continuing a downward trend seen relative to FY 2024. " "

Net Income

Increased from $4,767 million in Q1 2024 to $5,085 million in Q1 2025 (+6.7%)

Net income improved as operational efficiencies—such as lower R&D and restructuring costs—helped offset the modest decline in total revenue, building on a base that had been negatively affected by higher charges in the previous period. " "

Earnings per Share (EPS)

Increased from $1.87 in Q1 2024 to $2.01 in Q1 2025 (approximately +7.5%)

EPS increased as a result of improved underlying profitability stemming from cost reductions and lower one-time charges compared to Q1 2024, reflecting a more efficient operational performance relative to the previous period. " "

Revenue

FY 2025

$64.1B–$65.6B, growth up to 4% "

$64.1B–$65.6B, growth 1%–3% "

lowered

Gross Margin

FY 2025

Approximately 82.5% "

Approximately 82% "

lowered

Operating Expenses

FY 2025

$25.4B–$26.4B, includes a $300M payment "

$25.6B–$26.6B, includes a $200M and $300M payment "

raised

Other Expense

FY 2025

$300M–$400M "

$300M–$400M "

no change

Tax Rate

FY 2025

16%–17% "

15.5%–16.5% "

lowered

Shares Outstanding

FY 2025

Approximately 2.53B shares "

Approximately 2.51B shares "

lowered

EPS

FY 2025

$8.88–$9.03, factoring in a LaNova payment and forex "

$8.82–$8.97, reflecting a one-time $200M charge "

lowered

Robust Pipeline & Blockbuster Opportunities

Q4 2024, Q3 2024 and Q2 2024 calls highlighted a diversified, exponentially expanded late‐phase pipeline with several blockbuster potential products and a projected >$50 billion commercial opportunity " " " "

Q1 2025 reiterated the strength of the robust pipeline with nearly tripled late‐phase programs, 20 new growth drivers (including WINREVAIR and CAPVAXIVE) and highlighted its role in mitigating KEYTRUDA’s LOE challenges " "

Consistent expansion and confidence with sustained blockbuster potential.

KEYTRUDA Performance, Patent Expiration & Competitive Threats

Earlier periods described strong sales growth (21% increases in Q4 and Q3; 21% in Q2), multiple new approvals, and detailed strategies to address patent expiration and competition through new formulations and combination regimens " " " " "

Q1 2025 continues to report robust sales growth (6% increase to $7.2 billion), progress on the subcutaneous formulation, and strategic positioning to offset upcoming patent expirations " " "

Ongoing healthy performance with evolving risk management and cautious optimism over competition.

GARDASIL Market Challenges & China-Related Headwinds

Q4 2024, Q3 2024 and Q2 2024 discussed challenges in China (inventory issues, shipment reductions, economic pressures) alongside robust growth outside China and even adjustment of long-term targets " " " " " " "

Q1 2025 reported a significant decline of ~$1.1B in China, elevated channel inventories, and reassessment of shipment levels, while noting 16% growth outside China " "

Persistent headwinds in China with ongoing adjustments; external markets remain a bright spot.

Supply Chain Resilience, U.S. Manufacturing & Tariff Risk

Q4 2024 noted a global footprint with low exposure to high‐tariff regions; Q2 and Q3 provided little or no commentary on this topic "

Q1 2025 detailed a proactive approach using a regional manufacturing model (“U.S. for U.S., Europe for Europe, Asia for Asia”), disclosed $200M in tariff costs, and reiterated large investments in U.S. manufacturing ($12B invested, $9B+ committed) " " "

Emerging as a focused topic in the current period with an increased emphasis on mitigating global risks.

Regulatory Approvals & Strategic Milestone Achievements

Q4, Q3 and Q2 2024 highlighted multiple regulatory approvals for WINREVAIR, CAPVAXIVE, KEYTRUDA indications (including breakthrough designations and approvals in China, Europe, and Japan) plus important clinical milestone achievements " " " " "

Q1 2025 reported additional approvals (e.g. CAPVAXIVE globally, WELIREG in Europe, expanded GARDASIL indications) and upcoming milestone events (PDUFA dates for KEYNOTE-689 and Phase III study results) " " "

Consistent addition of new approvals and milestones reinforcing the growth story with incremental positive updates.

Strategic Business Development, Acquisitions & Pipeline Expansion

Q4, Q3 and Q2 2024 emphasized a science-driven approach to business development with acquisitions (EyeBio, Curon, Elanco Aqua, licensing deals with Hess, LaNova, Hanse) and pipeline augmentation (20 new growth drivers, expanding late-phase assets) " " " " "

Q1 2025 maintained the focus on pipeline expansion through internal advancements and continued business development investments, underlining their strategy to counteract KEYTRUDA LOE and bolster long-term growth " " " "

A steady, underlying strategy continuously supporting long-term growth via acquisitions and pipeline enhancements.

Emergence of Advanced Therapeutic Modalities

Q4 and Q3 2024 introduced discussions on ADC programs, neoantigen therapies, and T cell engagers with detailed strategic initiatives (e.g. SAC-TMT, collaborations with Harpoon and Daiichi Sankyo) " " "

Q1 2025 did not discuss advanced modalities explicitly, with the focus remaining on pipeline breadth and blockbuster opportunities overall " "

A de‐emphasis or integration of these modalities into the broader pipeline narrative in the current period.

WINREVAIR Growth in Cardiometabolic and Pulmonary Spaces

Q2, Q3 and Q4 2024 described robust launch performance in PAH, early trial data (ZENITH and CADENCE studies), growing patient uptake, increasing global and U.S. commercial penetration, and expanding prescriber coverage " " " "

Q1 2025 reinforced strong performance with notable Q1 sales ($280M), continued trial successes (76% risk reduction in ZENITH), and expanding use in PAH patients globally " "

Consistent, strong growth trajectories with incremental positive clinical and commercial updates.

Global Macro Uncertainty & Business Development Environment

Q3 2024 briefly highlighted disciplined business development and capacity for deals in the $1B-$15B range, while Q4 and Q2 had indirect or no explicit commentary on macro uncertainty " " "

Q1 2025 explicitly addressed macro uncertainty impacting deal-making (disconnect in seller expectations) and detailed tariff challenges, reinforcing a cautious approach to the business development environment " " "

Increasing acknowledgment of macro factors and their impact on deal dynamics, leading to a more cautious but strategic outlook.

Earnings Impact from Increased Investments & Margin Pressures

Q2, Q3 and Q4 2024 detailed higher operating expenses, margin pressures from strategic acquisitions and tariff costs, adjustments to EPS guidance, and favorable product mix partially offsetting these challenges " " " "

Q1 2025 reported an 82.2% gross margin with detailed operating expense adjustments, mention of $200M tariff costs, and EPS guidance adjustments reflecting increased investments and foreign exchange impacts " "

Persistent margin pressures offset by deliberate investments; management remains focused on long-term value creation despite near-term cost challenges.