Pfizer (PFE) Q3 2024 earnings summary

Executive summary

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

• Net income was $4.5B in Q3 2024, compared to a loss of $2.4B in Q3 2023; reported diluted EPS was $0.78, adjusted EPS $1.06.

• Raised full-year 2024 revenue guidance to $61.0–$64.0B 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 margin expansion initiatives are on track, targeting at least $4B in net cost savings and supporting increased capital returns.

Financial highlights

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

• Adjusted diluted EPS was $1.06; reported EPS $0.78, including a $420M one-time charge for facility sale.

• 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.

• Adjusted operating expenses fell 2% operationally to $5.8B; adjusted R&D expenses were $2.6B, down 4% year-over-year.

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

Outlook and guidance

• Full-year 2024 revenue guidance raised to $61.0–$64.0B, with $10.5B expected from Comirnaty and Paxlovid.

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

• Non-COVID operational revenue growth guidance unchanged at 9–11%.

• 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.