Pfizer (PFE) Q2 2022 earnings summary

Executive summary

• Q2 revenue reached $27.7B, up 53% operationally YoY; adjusted diluted EPS was $2.04, up 100% operationally. Both exceeded consensus expectations.

• Full-year operational revenue and adjusted EPS expectations increased; reported revenue guidance remained $98B–$102B, while adjusted EPS guidance rose to $6.30–$6.45.

Financial highlights

• Reported diluted EPS was $1.73, up 77%; adjusted diluted EPS was $2.04, up 92% reported and 100% operationally.

• Excluding Comirnaty and Paxlovid, Biopharma product revenues grew 2% operationally; non-COVID revenues grew 1% operationally.

• Adjusted gross margin expanded 570 bps YoY, mainly on higher-margin Paxlovid sales; adjusted SI&A rose 7% and adjusted R&D rose 27% operationally.

• Foreign exchange reduced Q2 revenue and adjusted EPS by 7%, including $0.08 per share of EPS impact.

Outlook and guidance

• FY22 operational revenue expectations increased by ~$2B and operational adjusted diluted EPS expectations by $0.24; FX offset much of the improvement.

• Revenue guidance remained $98B–$102B, implying 29% operational growth at the midpoint; adjusted diluted EPS guidance increased to $6.30–$6.45, implying 65% operational growth at the midpoint.

• FY22 Comirnaty revenue forecast remained ~$32B and Paxlovid ~$22B; expected Comirnaty sales split is 25% of H2 in Q3 and 75% in Q4, while Paxlovid is 60% in Q3 and 40% in Q4.

• Adjusted SI&A guidance fell $300M to $12.2B–$13.2B; adjusted R&D guidance rose $500M at the low end to $11.5B–$12.0B; adjusted tax-rate outlook decreased 50 bps to ~15.5%.