Pfizer (PFE) Q2 2023 earnings summary

Executive summary

• Q2 results were solid and in line with expectations; total revenue fell 53% operationally as expected COVID-19 product declines outweighed 5% operational growth in non-COVID revenue. COVID-19 products generated more than $1.6B.

• More than 356M patients worldwide were treated with medicines and vaccines in H1.

Financial highlights

• Reported diluted EPS was $0.41, down 77%; Adjusted diluted EPS was $0.67, down 65% operationally, primarily reflecting the anticipated Paxlovid sales contraction.

• Adjusted SI&A expense was $3.4B, up 20% operationally, reflecting investments in upcoming launches and acquired products.

• FX reduced Q2 revenue by $283M, or 1%, and Adjusted diluted EPS by $0.05, or 2%, YoY.

Outlook and guidance

• FY2023 revenue guidance narrowed to $67B-$70B; Adjusted diluted EPS guidance maintained at $3.25-$3.45.

• Non-COVID operational revenue growth guidance was updated to 6%-8%; the $21.5B full-year Comirnaty and Paxlovid revenue forecast was maintained, with slightly over 40% booked YTD.

• Most 2023 launches are expected in H2; contributions are expected to build in H2 2023 and increase further in 2024. The plan targets 19 launches in roughly 18 months, with 18 largely technically de-risked.

• If COVID revenue is below assumptions, an enterprise-wide cost improvement program could begin yielding results in 2024; specific details are expected on upcoming earnings calls.