Pfizer (PFE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $17.7B, up 31–32% year-over-year, driven by strong oncology, Paxlovid, Seagen product contributions, and Vyndaqel family growth, partially offset by declines in Xeljanz and Ibrance.

• Adjusted diluted EPS was $1.06 and reported EPS was $0.78, both significantly improved from prior-year losses; net income was $4.5B in Q3 2024.

• Raised full-year 2024 revenue guidance to $61–$64B and adjusted EPS to $2.75–$2.95, reflecting strong performance and pipeline progress.

• Executed on strategic cost reduction and realignment initiatives, targeting at least $4B in net cost savings and $1.5B in manufacturing savings by 2027.

• Integration of Seagen progressing, with legacy Seagen products delivering significant revenue and cost synergies.

Financial highlights

• Q3 2024 revenues: $17.7B, up from $13.5B in Q3 2023; ex-COVID revenues were $13.6B, up 14% operationally.

• Adjusted gross margin was ~72%; cost of sales as a percentage of revenue dropped to 29.7% from 68.7% due to the non-recurrence of a $5.6B inventory write-off in Q3 2023.

• Adjusted operating expenses fell 2% operationally to $5.8B; adjusted SI&A expenses were $3.2B, up 1% year-over-year.

• Adjusted R&D expenses were $2.6B, down 4% year-over-year, reflecting lower vaccine program spending and cost realignment.

• Operating cash flow for the nine months was $6.0B; $7.1B returned to shareholders via dividends and $7.8B invested in R&D.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $61–$64B, with $10.5B expected from COVID-19 products; non-COVID operational revenue growth guidance at 9–11%.

• Adjusted EPS guidance increased to $2.75–$2.95, absorbing Oxbryta impact and Seagen acquisition dilution.

• 2024 guidance includes a ~$1.2B one-time Paxlovid USG true-up and favorable tax impact, boosting adjusted EPS by ~$0.30.

• No share repurchases planned for 2024; focus on deleveraging and balanced capital allocation.

• 2025 guidance expected by year-end, with modeling considerations for non-recurring 2024 items.