Pfizer (PFE) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues were $16.7 billion, down 6–7% year-over-year, mainly due to lower COVID-19 product sales, while non-COVID portfolios grew 4% operationally, led by Eliquis, Vyndaqel, and Nurtec ODT/Vydura.

• Adjusted diluted EPS for Q3 was $0.87, down 16–18% year-over-year, impacted by a $1.35 billion R&D charge related to the 3SBio licensing agreement; reported diluted EPS was $0.62.

• Achieved strategic milestones, including a landmark voluntary agreement with the U.S. Government on drug pricing and tariffs, and announced a $4.9 billion acquisition of Metsera, with early FTC clearance.

• R&D pipeline strengthened by licensing agreement with 3SBio and positive late-stage clinical data in oncology, with notable presentations at ESMO 2025.

• Continued commercial leadership in cardiometabolic, oncology, and vaccines, with strong international vaccine growth and market share gains.

Financial highlights

• Q3 2025 revenues: $16.7B (down 6–7% year-over-year); nine-month revenues: $45.0B (down 2%).

• Q3 2025 net income: $3.54B; Q3 adjusted income: $4.95B; nine-month net income: $9.42B.

• Adjusted diluted EPS was $0.87, ahead of expectations despite a $0.20 headwind from acquired in-process R&D.

• Cost of sales as a percentage of revenue improved to 23.9–25.0%, down from 27.5–29.7% year-over-year.

• Operating cash flow for the first nine months was $6.36–$6.4B, including a $1.35B upfront payment for 3SBio.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $61.0–$64.0 billion, with non-COVID products performing ahead of plan and COVID franchise expected at the low end.

• Adjusted diluted EPS guidance raised and narrowed to $3.00–$3.15 per share, reflecting strong cost management and de-risking of COVID trends.

• Adjusted R&D expense expected at $10–$11 billion; effective tax rate projected at 11%.

• Guidance for 2026 to be provided by year-end, with anticipated dilution from Metsera and 3SBio deals.

• No share repurchases anticipated in 2025; focus remains on reinvestment and deleveraging.