Pfizer (PFE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $13.3 billion, up 3% operationally year-over-year, driven by strong commercial execution, new product launches, and growth in non-COVID products, especially Oncology.

• Over 192 million patients reached in H1 2024 with medicines and vaccines.

• Advanced strategic priorities: oncology leadership, pipeline innovation, new product performance, margin expansion, and capital allocation.

• Leadership changes: Mikael Dolsten to depart as Chief Scientific Officer; Andrew Kang appointed Chief Strategy and Innovation Officer; Cyrus Taraporevala joined the board.

• Successful Seagen integration with high colleague retention and meaningful revenue contribution.

Financial highlights

• Q2 2024 revenues: $13.3B (+2% total, +3% operational YoY); H1 2024: $28.2B (-11% YoY).

• Excluding COVID products, Q2 2024 operational revenue grew 14% YoY.

• Adjusted gross margin improved to 79% (up from 76% YoY); adjusted cost of sales was $2.77B (20.8% of revenues).

• Adjusted SI&A expenses rose 8% to $3.67B; adjusted R&D up 2% to $2.67B.

• Q2 adjusted diluted EPS was $0.60; reported diluted EPS was $0.01, impacted by $1.3B in one-time restructuring costs.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $59.5–$62.5B; adjusted diluted EPS guidance raised to $2.45–$2.65.

• Operational revenue growth (excluding COVID products) projected at 9–11% for 2024.

• COVID product revenues expected at $8.5B ($5B Comirnaty, $3.5B Paxlovid); 2024 Comirnaty revenues heavily weighted to H2.

• On track to deliver at least $4B in net savings from cost realignment and $1.5B in manufacturing savings by 2027.

• Adjusted SI&A expenses expected at $13.8–$14.8B; adjusted R&D at $11.0–$12.0B; effective tax rate on adjusted income at ~13%.