Pfizer (PFE) Q1 2023 earnings summary

Executive summary

• Q1 was described as a solid, foundational quarter, with results in line with expectations; non-COVID revenue grew 5% operationally YoY while total revenue declined 26% operationally.

• Comirnaty and Paxlovid generated $7.1 billion in combined Q1 revenue; more than 250 million patients were treated with medicines and vaccines during the quarter.

Financial highlights

• Reported diluted EPS fell 29% to $0.97; Adjusted diluted EPS declined 20% operationally to $1.23.

• FX reduced Q1 revenue by $730 million, or 3%, and Adjusted diluted EPS by $0.07, or 4%, versus the prior-year quarter.

• Strong Paxlovid sales partially offset the expected Comirnaty decline; increased selling, information and administration investment supported anticipated launches.

Outlook and guidance

• FY 2023 revenue guidance remains $67 billion–$71 billion, implying a 31% operational decline at the midpoint; Adjusted diluted EPS guidance remains $3.25–$3.45.

• Non-COVID revenue guidance remains 7%–9% operational growth; launches concentrated in Q3 and Q4 are expected to drive faster growth in H2 than H1.

• COVID product sales are expected to be significantly lower in Q2 than Q1; more substantial vaccine deliveries are expected from September, while Paxlovid is expected to shift to a commercial market in H2.

• FY 2023 FX is expected to reduce Adjusted diluted EPS by $0.13 versus FY 2022.