Pfizer (PFE) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $17.7B, up 32% operationally year-over-year, driven by strong oncology, vaccine, and COVID-19 product sales, with non-COVID products up 14%.

• Reported diluted EPS was $0.78; adjusted diluted EPS was $1.06, both significantly improved from prior-year losses.

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

• Oncology portfolio delivered 31% year-over-year growth, with significant contributions from legacy Seagen and Pfizer products.

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

Financial highlights

• Q3 2024 net income was $4.5B, compared to a net loss of $2.4B in Q3 2023; adjusted income for the quarter was $6.1B.

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

• Adjusted R&D expenses were $2.6B, down 4% year-over-year; adjusted SI&A expenses were $3.2B, up 1%.

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

• FX negatively impacted revenue by $133M.

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 unchanged at 9–11%.

• Adjusted EPS guidance increased to $2.75–$2.95, absorbing Oxbryta impact and $0.40 dilution from Seagen acquisition.

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

• No share repurchases planned for 2024; capital allocation focused on dividends, debt reduction, and R&D.

• Guidance assumes minimal FX impact and heavy Q4 revenue weighting due to vaccine seasonality.