Executive Summary

Q2 2025: Revenue $14.65B (+10% YoY operational), Adjusted EPS $0.78, Reported EPS $0.51; raised FY25 Adjusted EPS guidance to $2.90–$3.10 while reaffirming revenue $61–$64B .
Beat vs Street: Revenue and Adjusted EPS exceeded consensus; revenue $14.65B vs $13.53B*, Adjusted EPS $0.78 vs $0.57*; drivers included Vyndaqel, Comirnaty, Paxlovid, Padcev, and Eliquis .
Guidance mix-shift: Lower FY25 SI&A and R&D ranges and a lower adjusted tax rate (~13%) reflect cost programs and tax mix; guidance absorbs ~$0.20 EPS headwind from the 3SBio IPR&D charge .
Margin/cost narrative: Continued execution of cost realignment and manufacturing optimization programs (target ~$7.2B net savings by 2027) supports margin expansion; adjusted gross margin ~76% in Q2 per CFO .
Policy watch: Management says FY25 guidance absorbs impacts from tariffs and potential price changes; active dialogue on MFN and tariff policy maintained; COVID revenues skew to H2 (Q3/Q4) .

What Went Well and What Went Wrong

What Went Well

Broad-based growth: Vyndaqel (+21% op), Comirnaty (+95% op), Paxlovid (+71% op), Padcev (+38% op), Eliquis (+6% op), Abrysvo (+155% op), Lorbrena (+48% op) drove topline outperformance .
Margin execution: CFO highlighted adjusted gross margin ~76% and 8–9% operational reductions in SI&A and R&D, reflecting productivity initiatives and pipeline focus .
Guidance confidence: Raised FY25 Adjusted EPS by $0.10 (to $2.90–$3.10) while absorbing ~$0.20 EPS headwind from the 3SBio licensing charge and reaffirming revenue range; CEO: “another strong quarter of focused execution…” .

What Went Wrong

Pricing headwinds: Higher manufacturer discounts under IRA Medicare Part D redesign created an $825M YoY headwind and pressured U.S. net price (e.g., Eliquis) .
Cost of sales mix: Reported cost of sales rose to 25.8% of revenue (+90 bps YoY), partly due to non-recurrence of favorable royalty accrual revisions from Q2 2024 .
Ibrance softness: Ibrance down 8% operationally on U.S. net price pressure and international generic entry/timing .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$17.76	$13.72	$14.65
Revenue YoY (%)	+22%	-8%	+10%
Reported Diluted EPS ($)	$0.07	$0.52	$0.51
Adjusted Diluted EPS ($)	$0.63	$0.92	$0.78
Reported Cost of Sales % of Revenue	33.3%	20.7%	25.8%
Adjusted Cost of Sales % of Revenue	32.3%	18.9%	23.9%

Segment revenue vs prior year:

Segment ($USD Millions)	Q2 2024	Q2 2025
Primary Care	$4,952	$5,540
Specialty Care	$4,083	$4,378
Oncology	$3,956	$4,387
Pfizer CentreOne (PC1)	$278	$328
Pfizer Ignite	$15	$20
Total Revenues	$13,283	$14,653

Key product KPIs:

Product ($USD Millions)	Q2 2024	Q2 2025	YoY Oper.
Vyndaqel family	$1,323	$1,615	+21%
Eliquis	$1,877	$2,003	+6%
Comirnaty	$195	$381	+95%
Paxlovid	$251	$427	+71%
Padcev	$394	$542	+38%
Abrysvo	$56	$143	+155% (+$86M)
Lorbrena	$169	$251	+48%
Ibrance	$1,130	$1,049	-8%

Versus estimates:

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue Actual ($B)	$13.72	$14.65	$16.65*
Revenue Consensus ($B)	$14.05*	$13.53*	$16.50*
EPS Adjusted Actual ($)	$0.92	$0.78	$0.87*
EPS Consensus ($)	$0.67*	$0.57*	$0.63*

Values marked with * retrieved from S&P Global.

Drivers of beats/misses:

Q2 beat driven by stronger U.S. market share and contractual deliveries in Comirnaty, pricing/GTN benefits and rebate accrual adjustments in Paxlovid, continued Vyndaqel diagnosis uptake, and Padcev share gains (plus a one-time U.S. wholesaler transition) .
Headwinds included IRA-driven manufacturer discounts impacting net price (e.g., Eliquis) and higher cost of sales mix vs prior-year quarter .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$61.0–$64.0B	$61.0–$64.0B	Maintained
Adjusted SI&A	FY 2025	$13.3–$14.3B	$13.1–$14.1B	Lowered
Adjusted R&D	FY 2025	$10.7–$11.7B	$10.4–$11.4B	Lowered
Adjusted Tax Rate	FY 2025	~15%	~13%	Lowered
Adjusted Diluted EPS	FY 2025	$2.80–$3.00	$2.90–$3.10 (absorbs ~$0.20 IPR&D for 3SBio)	Raised
Share Repurchases	FY 2025	None anticipated	None anticipated; $3.3B authorization remains	Maintained
Dividends	FY 2025	—	$4.9B paid in 1H25; commitment reiterated	Ongoing

Notes: Guidance absorbs tariff impacts (China, Canada, Mexico) and potential price changes per July 31 letter; includes $1.35B IPR&D charge related to 3SBio in Q3 2025 (~$0.20 EPS) .

Earnings Call Themes & Trends

Topic	Q4 2024 (Prior-2)	Q1 2025 (Prior-1)	Q2 2025 (Current)	Trend
AI/Tech & Productivity	Manufacturing optimization and cost realignment targets toward pre-pandemic margins	Expanded SI&A savings via digital enablement/AI; R&D re-org savings identified	Ongoing margin expansion programs; adjusted gross margin ~76%	Strengthening
Tariffs/MFN/Macro	Noted cost programs and 2025 guidance reset; less explicit tariff detail	Guidance excluded future tariffs at the time	Guidance now absorbs tariffs and potential price changes; active policy dialogue (MFN)	Risk contained in outlook
COVID Seasonality	Comirnaty down in Q4 2024; COVID volatile	Comirnaty up YoY operational; Paxlovid lapped reversal	Majority of COVID revenues expected in Q3/Q4; strong Q2 Comirnaty execution	H2-weighted
Product Performance	Vyndaqel, Eliquis, Xtandi, Nurtec strong in Q4 2024	Vyndaqel +33% op; Nurtec +40% op; Lorbrena +39% op	Broad growth across Vyndaqel, Comirnaty, Paxlovid, Padcev, Eliquis, Abrysvo, Lorbrena	Momentum sustained
Regional Trends	U.S. vs International mix shift in Q4	U.S. core execution; International emerging growth	International focus: mid-to-high single-digit growth across regions via targeted prioritization	Improving
Regulatory/Legal	Abrysvo recommendation changes impacted older adult vaccination rates	ACIP expanded RSV recommendation for 50–59 high-risk	Comirnaty LP.8.1 adapted vaccine authorized in EU; Talzenna label update	Active pipeline/regulatory
R&D Execution	Seagen portfolio integration; multiple readouts	Pipeline updates (vepdegestrant, sasanlimab)	Oncology ADC programs, SV combinations; Hympavzi Phase 3 positive	Accelerating

Management Commentary

CEO: “We’re pleased with our progress in advancing our R&D pipeline, driving our commercial performance and expanding our margins…” .
CFO: “We raised our full-year 2025 Adjusted diluted EPS guidance…delivering strong results for shareholders” .
CFO on margins: “Adjusted gross margin…approximately 76%… savings from the manufacturing optimization program by 2027 will help bolster gross margins” .
U.S. Commercial: “Comirnaty had a very strong quarter…we anticipate a strong season” .

Q&A Highlights

Policy/Price/Tariffs: Company engaged in active discussions with administration; FY25 guidance range absorbs potential impacts; no specific quantification disclosed .
COVID Outlook: Large majority of COVID revenues expected in Q3/Q4; modest effect from narrowed recommendations; execution readiness emphasized .
Capital Allocation: New gross leverage target ~2.7x; BD capacity ~$13B; emphasis on smaller deals; dividend commitment reiterated .
Tax Rate: Adjusted tax rate lowered to ~13% for FY25; long-term expectation nearer 15% .
Oncology Strategy: PADCEV share >50% in first-line la/mUC; SV combinations moving rapidly into Ph1/2 and Ph3; multiple near-term readouts .

Estimates Context

Q2 2025: Actual Revenue $14.65B vs consensus $13.53B*; Adjusted EPS $0.78 vs consensus $0.57*.
Q1 2025: Actual Revenue $13.72B vs consensus $14.05B* (miss on topline), Adjusted EPS $0.92 vs consensus $0.67* (beat).
Q3 2025: Actual Revenue $16.65B* and Adjusted EPS $0.87* both above consensus $16.50B* and $0.63* respectively (context for H2 concentration).
Values marked with * retrieved from S&P Global.

Implications for models:

Raise FY25 EPS and H2 mix assumptions; factor lower SI&A/R&D and tax rate; incorporate IRA GTN headwinds in U.S. brands (Eliquis) and strong oncology/Vyndaqel trajectories .

Key Takeaways for Investors

Earnings quality: Q2 beat driven by core franchises and disciplined OpEx; FY25 EPS guidance raised despite absorbing 3SBio charge .
Cost/margin: Execution on ~$7.2B net savings by 2027 and manufacturing optimization should support margin resilience through LOE period .
COVID cadence: H2-weighted revenues; monitor fall vaccination dynamics and payer coverage, but execution and contracts are strong .
Policy buffer: Guidance now incorporates tariff/MFN scenarios, reducing near-term estimate risk from macro policy .
Product drivers: Vyndaqel, PADCEV, Lorbrena, Comirnaty (EU LP.8.1 adaptation), and Abrysvo maternal demand underpin growth; watch IRA-driven net price headwinds (Eliquis) .
Capital stance: Gross leverage target ~2.7x, BD capacity ~$13B, no buybacks in 2025, dividend support continues—expect smaller, value-driven BD .
Trading lens: Near-term catalysts include oncology readouts (PADCEV MIBC), SV program updates, and fall COVID season; policy headlines a watch item but partly de-risked in outlook .

Notes on non-GAAP metrics: Adjusted EPS/income exclude amortization, acquisition-related items, discontinued ops, and certain significant items; reconciliations provided in press materials .

PFIZER INC (PFE)·Q2 2025 Earnings Summary