Pfizer(US:PFE)2026-02-03 12:01Financial Performance - Full-Year 2025 revenues totaled $62.6 billion, reflecting a 2% year-over-year operational decline; excluding contributions from Paxlovid and Comirnaty, revenues grew 6% operationally[4] - Full-Year 2025 reported diluted EPS was $1.36, while adjusted diluted EPS was $3.22, representing a 3% decline year-over-year[4] - Fourth-Quarter 2025 revenues were $17.6 billion, a 3% year-over-year operational decline; excluding contributions from Paxlovid and Comirnaty, revenues grew 9% operationally[4] - Full-year 2025 total revenues were $62,579 million, down 2% from $63,627 million in 2024[35] - Fourth-quarter 2025 revenues totaled $15.141 billion, a decrease of 8% compared to the prior year, primarily due to a decline in COVID-19 product revenues[20] - Full-year 2025 net income attributable to Pfizer Inc. common shareholders was $7.771 billion, with an adjusted diluted EPS of $3.22, compared to $1.36 in 2024[46] - Net income attributable to Pfizer Inc. common shareholders for Q4 2025 was a loss of $1,648 million, compared to a profit of $410 million in Q4 2024[35] Revenue Guidance and Expectations - Pfizer reaffirms its full-year 2026 financial guidance, expecting revenues in the range of $59.5 to $62.5 billion and adjusted diluted EPS between $2.80 and $3.00[10] - The 2026 revenue guidance includes approximately $5 billion from COVID-19 products and anticipates a negative revenue impact of about $1.5 billion due to certain products losing exclusivity[10] - The anticipated unfavorable revenue impact due to generic and biosimilar competition is approximately $1.5 billion[30] Research and Development - Pfizer advanced 11 key pivotal study starts in 2025 and plans approximately 20 key pivotal study starts for 2026, focusing on key therapeutic areas[3] - In 2025, Pfizer invested $10.4 billion in internal research and development and approximately $8.8 billion in business development transactions, including the Metsera acquisition[11] - Fourth-quarter 2025 R&D expenses increased by 4% to $3.116 billion, driven by spending in oncology and obesity product candidates[19] - Research and development expenses for Q4 2025 were $3,206 million, an increase of 6% from $3,035 million in Q4 2024[35] Product Performance - Comirnaty and Paxlovid revenues declined significantly, down 35% and 70% operationally, respectively, due to lower COVID-19 infections and vaccination rates[16] - The operational decrease in full-year 2025 revenues was primarily driven by lower demand for Paxlovid and Comirnaty, partially offset by growth from products like Vyndaqel and Eliquis[21] - Fourth-quarter operational revenue reflected higher revenues for Abrysvo, up 136%, and oncology biosimilars, up 76%[14] - Eliquis revenue increased by 10% to $2,020 million in 2025, up from $1,832 million in 2024[53] - Specialty Care revenues rose by 8% to $4,771 million in 2025, compared to $4,438 million in 2024[53] - Oncology revenues increased by 9% to $4,435 million in 2025, up from $4,064 million in 2024[53] - Paxlovid sales significantly dropped to $2.362 billion, a 59% decrease from $5.716 billion in 2024[58] Shareholder Returns - The company returned $9.8 billion to shareholders through cash dividends, equating to $1.72 per share of common stock[11] Acquisitions and Collaborations - Pfizer completed the acquisition of Metsera for approximately $7.0 billion, enhancing its portfolio in obesity and cardiometabolic diseases[26] - Pfizer announced a global collaboration with YaoPharma for the development of YP05002, with an upfront payment of $150 million and potential milestone payments up to $1.935 billion[26] Tax and Financial Adjustments - The effective tax rate on adjusted income for the fourth quarter of 2025 was 23.3%, up from 18.9% in the prior year[19] - Pfizer's effective tax rate for full-year 2025 was 0.1%, a notable decrease from 4,220.5% in 2024, attributed to favorable changes in jurisdictional earnings mix and tax benefits[41] - The company recognized $4.363 billion in asset impairments in Q4 2025, significantly higher than the $2.946 billion in Q4 2024, primarily related to changes in development plans[41] Market Challenges and Risks - Competition from new product entrants, generic products, and biosimilars poses a significant challenge to the company's market position[62] - The company faces uncertainties regarding the demand for COVID-19 products, which may lead to reduced revenues and excess inventory[62] - Regulatory changes, including the Inflation Reduction Act of 2022, could impact drug pricing and reimbursement processes, affecting overall revenue[64] - The company is exposed to risks related to climate change, geopolitical instability, and potential disruptions from natural disasters[64] - Legal proceedings and regulatory evaluations may result in product recalls or withdrawals, impacting financial performance[64] - Fluctuations in interest rates and foreign currency exchange rates could affect financial results and operational costs[62] - Cybersecurity threats and potential disruptions to information technology systems pose risks to operational integrity[65]