Financial Performance - First quarter 2025 revenues reached $13.7 billion[26], a 6% decrease compared to $14.9 billion in the first quarter of 2024[28], primarily due to a decline in Paxlovid revenues[28] - Adjusted diluted EPS for the first quarter of 2025 was $0.92[26], a 10% increase compared to $0.82 in the first quarter of 2024[28], driven by operating efficiency and favorable global income tax resolutions[28] - Adjusted Cost of Sales as a percentage of revenues decreased by 1.5 percentage points, from 20.4% in Q1 2024 to 18.9% in Q1 2025[28], driven by favorable revision of accrued royalties and favorable FX[28] - Adjusted SI&A expenses decreased by 12% to $3.0 billion[28] from $3.5 billion[28] in the first quarter of 2024, reflecting productivity improvements and lower spending on COVID-19 products[28] - Adjusted R&D expenses decreased by 12% to $2.2 billion[28] from $2.5 billion[28] in the first quarter of 2024, driven by pipeline focus and optimization[28] Capital Allocation and Cost Savings - The company reinvested $2.2 billion in internal R&D in the first quarter of 2025[30] - $2.4 billion was returned to shareholders in the first quarter of 2025[30] - The company expects $7.2 billion in total net cost savings by the end of 2027[34], while reinvesting $500 million to strengthen R&D productivity[34] Strategic Priorities and Pipeline - The company reaffirms its 2025 financial guidance, with revenue expected to be in the range of $61.0 to $64.0 billion[35], and adjusted diluted EPS expected to be in the range of $2.80 to $3.00[35] - The company anticipates 4 regulatory decisions and 9 Phase 3 readouts in 2025[14]