Pfizer (PFE) Q4 2025 earnings summary

Executive summary

• Exceeded 2025 financial commitments, with full-year revenues of $62.6B and adjusted diluted EPS of $3.22, driven by strong operational growth in non-COVID products and double-digit gains from recent launches and acquisitions.

• Overcame lower COVID-19 product revenue, resolved pricing and tariff uncertainties, and returned $9.8B to shareholders via dividends.

• Advanced pipeline with four key approvals, eight critical readouts, and 11 pivotal studies initiated; entered 2026 with robust late-stage pipeline and plans for ~20 pivotal study starts.

• Strategic acquisitions (Seagen, Metsera, Biohaven) and licensing deals (YaoPharma, 3SBio) strengthened the pipeline and expanded the obesity and cardiometabolic portfolio.

• AI initiatives scaled across R&D, manufacturing, and commercial operations to drive productivity and innovation.

Financial highlights

• Full-year 2025 revenue: $62.6B (down 2% operationally YoY); excluding COVID-19 products, operational revenue grew 6%.

• Adjusted gross margin for 2025: 76%; Q4 adjusted gross margin: 71%.

• Full-year 2025 adjusted diluted EPS: $3.22 (up 4% YoY); reported diluted EPS: $1.36.

• Q4 2025 revenue: $17.6B (down 3% operationally YoY), mainly due to a 40% decline in COVID products; non-COVID products grew 9% operationally.

• Recently launched/acquired products delivered $10.2B in 2025 revenue, up 14% operationally YoY.

Outlook and guidance

• 2026 revenue guidance: $59.5B–$62.5B; adjusted diluted EPS: $2.80–$3.00; includes ~$5B in COVID-19 product revenues and a negative $1.5B impact from loss of exclusivity.

• No share repurchases anticipated in 2026; focus on productivity, capital discipline, and deleveraging.

• Excluding COVID and LOE products, 2026 operational revenue growth expected at ~4% YoY.

• Guidance reflects stable gross and operating margins and a higher effective tax rate (~15%).

• Post-2028 growth expected to be driven by pipeline advancement, business development, and recently launched/acquired products.