Operating margins have experienced significant contraction, falling from 33.7% in 2025Q1 to 21.0% by 2025Q4, reflecting challenges in scaling expenses efficiently.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 63.31B | 62.58B | 63.63B | 59.55B | 100.33B | 81.29B | 41.65B | 41.17B | 53.65B | 52.55B | 52.82B | 48.85B | 49.6B | 51.58B | 54.66B | 61.03B | 67.06B | 50.01B | 48.3B | 48.43B | 48.37B | 47.41B | 52.52B | 45.19B | 32.37B | 32.26B | 29.57B | 16.2B | 13.54B | 12.5B | 11.31B |
| Revenue Growth % | 1.36% | -1.65% | 6.84% | -40.64% | 23.43% | 95.16% | 1.16% | -23.25% | 2.1% | -0.53% | 8.13% | -1.52% | -3.84% | -5.62% | -10.45% | -8.98% | 34.09% | 3.55% | -0.27% | 0.12% | 2.04% | -9.73% | 16.22% | 39.59% | 0.35% | 9.08% | 82.51% | 19.64% | 8.32% | 10.6% | 12.82% |
| Cost of Goods Sold | 19.41B | 18.57B | 21.78B | 29.21B | 38.24B | 34.41B | 11.77B | 12.62B | 16.01B | 15.78B | 15.95B | 13.16B | 13.31B | 13.95B | 14.64B | 17.16B | 20.71B | 11.59B | 10.04B | 11.72B | 10.51B | 10.51B | 10.9B | 9.83B | 4.04B | 5.03B | 4.06B | 1.99B | 1.6B | 1.77B | 1.75B |
| COGS % of Revenue | - | 29.67% | 34.23% | 49.05% | 38.11% | 42.33% | 28.26% | 30.66% | 29.84% | 30.03% | 30.2% | 26.93% | 26.83% | 27.05% | 26.79% | 28.12% | 30.89% | 23.18% | 20.78% | 24.21% | 21.73% | 22.16% | 20.77% | 21.76% | 12.5% | 15.6% | 13.72% | 12.26% | 11.85% | 14.17% | 15.44% |
| Gross Profit | 43.91B | 44.01B | 41.85B | 30.34B | 62.09B | 46.88B | 29.88B | 28.55B | 37.64B | 36.77B | 36.87B | 35.69B | 36.3B | 37.63B | 40.02B | 43.87B | 46.34B | 38.42B | 38.26B | 36.7B | 37.86B | 36.9B | 41.61B | 35.36B | 28.33B | 27.23B | 25.52B | 14.22B | 11.94B | 10.73B | 9.56B |
| Gross Margin % | 69.35% | 70.33% | 65.77% | 50.95% | 61.89% | 57.67% | 71.74% | 69.34% | 70.16% | 69.97% | 69.8% | 73.07% | 73.17% | 72.95% | 73.21% | 71.88% | 69.11% | 76.82% | 79.22% | 75.79% | 78.27% | 77.84% | 79.23% | 78.24% | 87.5% | 84.4% | 86.28% | 87.74% | 88.15% | 85.83% | 84.56% |
| Gross Profit Growth % | - | 5.18% | 37.92% | -51.14% | 32.46% | 56.88% | 4.66% | -24.15% | 2.37% | -0.27% | 3.29% | -1.66% | -3.55% | -5.96% | -8.79% | -5.34% | 20.63% | 0.41% | 4.24% | -3.06% | 2.61% | -11.33% | 17.69% | 24.81% | 4.05% | 6.7% | 79.46% | 19.09% | 11.25% | 12.26% | 16.14% |
| Operating Expenses | 29.06B | 28.58B | 25.36B | 25.05B | 24.54B | 26.08B | 20.8B | 21.04B | 22.35B | 22.38B | 22.6B | 22.4B | 22.27B | 20.74B | 21.98B | 25.49B | 28.61B | 22.41B | 21.64B | 22.78B | 22.77B | 22.37B | 24.52B | 24.56B | 16.05B | 16.25B | 16.84B | 9.67B | 8.34B | 7.39B | 6.48B |
| OpEx % of Revenue | - | 45.67% | 39.86% | 42.06% | 24.46% | 32.09% | 49.93% | 51.1% | 41.66% | 42.59% | 42.78% | 45.85% | 44.89% | 40.21% | 40.21% | 41.76% | 42.67% | 44.81% | 44.8% | 47.04% | 47.07% | 47.18% | 46.7% | 54.34% | 49.58% | 50.37% | 56.96% | 59.67% | 61.55% | 59.07% | 57.31% |
| Selling, General & Admin | 13.28B | 13.35B | 14.73B | 14.47B | 13.12B | 12.25B | 11.4B | 12.67B | 14.38B | 14.73B | 14.76B | 14.73B | 13.96B | 14.19B | 15.02B | 17.48B | 19.25B | 14.66B | 14.12B | 15.21B | 15.35B | 15.16B | 16.9B | 15.24B | 10.85B | 11.3B | 11.44B | 6.35B | 5.57B | 4.96B | 6.05B |
| SG&A % of Revenue | - | 21.33% | 23.15% | 24.3% | 13.07% | 15.07% | 27.37% | 30.78% | 26.81% | 28.04% | 27.93% | 30.15% | 28.13% | 27.51% | 27.48% | 28.65% | 28.71% | 29.31% | 29.24% | 31.4% | 31.73% | 31.98% | 32.19% | 33.73% | 33.5% | 35.03% | 38.69% | 39.19% | 41.11% | 39.64% | 53.51% |
| Research & Development | 12.42B | 11.98B | 10.74B | 10.58B | 11.43B | 13.83B | 9.39B | 8.36B | 7.97B | 7.64B | 7.84B | 7.67B | 8.31B | 6.55B | 6.96B | 8B | 9.36B | 7.75B | 7.51B | 7.57B | 7.42B | 7.21B | 7.62B | 7.13B | 5.18B | 4.85B | 4.43B | 2.78B | 2.28B | 1.93B | 0 |
| R&D % of Revenue | - | 19.14% | 16.88% | 17.76% | 11.39% | 17.01% | 22.56% | 20.31% | 14.85% | 14.55% | 14.84% | 15.7% | 16.75% | 12.7% | 12.72% | 13.11% | 13.96% | 15.51% | 15.55% | 15.64% | 15.35% | 15.2% | 14.51% | 15.78% | 15.99% | 15.03% | 15% | 17.13% | 16.83% | 15.42% | - |
| Other Operating Expenses | 3M | 3.25B | -105M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.18B | 28M | 103M | 968M | 542M | 489M | 502M | 430M |
| Operating Income | 14.85B | 15.44B | 16.48B | 5.29B | 37.55B | 20.79B | 9.09B | 7.51B | 15.29B | 14.39B | 14.27B | 13.3B | 14.03B | 16.89B | 18.04B | 18.38B | 17.73B | 16.01B | 16.63B | 13.92B | 15.09B | 14.53B | 17.09B | 10.8B | 12.28B | 10.98B | 8.67B | 4.55B | 3.6B | 3.35B | 3.08B |
| Operating Margin % | 23.45% | 24.67% | 25.91% | 8.89% | 37.43% | 25.58% | 21.81% | 18.24% | 28.5% | 27.39% | 27.02% | 27.22% | 28.28% | 32.74% | 33% | 30.12% | 26.44% | 32.01% | 34.42% | 28.75% | 31.2% | 30.65% | 32.54% | 23.9% | 37.93% | 34.02% | 29.32% | 28.07% | 26.6% | 26.76% | 27.24% |
| Operating Income Growth % | - | -6.35% | 211.47% | -85.91% | 80.58% | 128.87% | 20.96% | -50.87% | 6.24% | 0.82% | 7.36% | -5.22% | -16.93% | -6.38% | -1.87% | 3.67% | 10.76% | -3.71% | 19.41% | -7.75% | 3.87% | -14.97% | 58.22% | -12.04% | 11.86% | 26.6% | 90.59% | 26.26% | 7.68% | 8.64% | 20.3% |
| EBITDA | 21B | 20.34B | 23.5B | 11.58B | 42.61B | 25.98B | 13.77B | 13.31B | 21.67B | 20.66B | 20.03B | 18.45B | 19.57B | 23.3B | 25.69B | 27.41B | 26.22B | 20.77B | 21.71B | 19.12B | 20.39B | 20.11B | 22.18B | 14.88B | 13.31B | 12.04B | 9.64B | 5.09B | 4.09B | 3.85B | 3.51B |
| EBITDA Margin % | 33.17% | 32.51% | 36.93% | 19.45% | 42.47% | 31.97% | 33.05% | 32.32% | 40.4% | 39.32% | 37.92% | 37.77% | 39.44% | 45.17% | 47.01% | 44.91% | 39.1% | 41.52% | 44.96% | 39.49% | 42.15% | 42.41% | 42.24% | 32.92% | 41.13% | 37.34% | 32.59% | 31.42% | 30.21% | 30.77% | 31.05% |
| EBITDA Growth % | -12.82% | -13.42% | 102.87% | -72.82% | 64% | 88.75% | 3.46% | -38.61% | 4.9% | 3.14% | 8.55% | -5.69% | -16.02% | -9.33% | -6.25% | 4.53% | 26.26% | -4.37% | 13.55% | -6.2% | 1.39% | -9.35% | 49.09% | 11.75% | 10.54% | 24.96% | 89.31% | 24.41% | 6.34% | 9.63% | 19.62% |
| D&A (Non-Cash Add-back) | 6.16B | 4.91B | 7.01B | 6.29B | 5.06B | 5.19B | 4.68B | 5.79B | 6.38B | 6.27B | 5.76B | 5.16B | 5.54B | 6.41B | 7.66B | 9.03B | 8.49B | 4.76B | 5.09B | 5.2B | 5.29B | 5.58B | 5.09B | 4.08B | 1.04B | 1.07B | 968M | 542M | 489M | 502M | 430M |
| EBIT | 10.79B | 10.19B | 11.11B | 3.27B | 35.97B | 25.6B | 8.49B | 13.06B | 13.2B | 13.57B | 9.54B | 10.16B | 13.6B | 17.13B | 12.76B | 13.16B | 11.08B | 12.06B | 10.21B | 9.68B | 13.52B | 11.27B | 14.35B | 10.37B | 12.22B | 10.61B | 8.57B | 6.96B | 5.35B | 3.07B | 2.74B |
| Net Interest Income | -2.11B | -2.07B | -2.55B | -585M | -987M | -1.25B | -1.38B | -1.35B | -983M | -879M | -716M | -728M | -935M | -1.01B | -1.14B | -1.23B | -1.4B | -487M | 772M | 1.1B | 437M | 269M | -1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 575M | 603M | 545M | 1.62B | 251M | 36M | 73M | 225M | 333M | 391M | 470M | 471M | 425M | 403M | 382M | 456M | 402M | 746M | 1.29B | 1.5B | 925M | 740M | 346M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.69B | 2.67B | 3.09B | 2.21B | 1.24B | 1.29B | 1.45B | 1.57B | 1.32B | 1.27B | 1.19B | 1.2B | 1.36B | 1.41B | 1.52B | 1.68B | 1.8B | 1.23B | 516M | 397M | 488M | 471M | 347M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -6.94B | -7.92B | -8.46B | -4.23B | -2.82B | 3.52B | -2.05B | 3.97B | -3.4B | -2.09B | -5.92B | -4.33B | -1.79B | -1.17B | -6.8B | -6.9B | -8.45B | -5.18B | -6.93B | -4.64B | -2.06B | -3.73B | -3.08B | -7.1B | -425M | -992M | -2.9B | -17M | -956M | -216M | -221M |
| Pretax Income | 7.91B | 7.52B | 8.02B | 1.06B | 34.73B | 24.31B | 7.04B | 11.48B | 11.88B | 12.3B | 8.35B | 8.96B | 12.24B | 15.72B | 11.24B | 11.48B | 9.28B | 10.83B | 9.69B | 9.28B | 13.03B | 10.8B | 14.01B | 3.26B | 11.8B | 10.33B | 5.77B | 4.44B | 2.59B | 3.08B | 2.8B |
| Pretax Margin % | 12.49% | 12.02% | 12.61% | 1.78% | 34.61% | 29.91% | 16.89% | 27.9% | 22.15% | 23.42% | 15.81% | 18.35% | 24.67% | 30.47% | 20.57% | 18.81% | 13.84% | 21.65% | 20.07% | 19.16% | 26.93% | 22.78% | 26.67% | 7.22% | 36.44% | 32.02% | 19.5% | 27.42% | 19.14% | 24.62% | 24.75% |
| Income Tax | 384M | -266M | -28M | -1.11B | 3.33B | 1.85B | 370M | 618M | 706M | -9.05B | 1.12B | 1.99B | 3.12B | 4.31B | 2.22B | 3.62B | 1.07B | 2.2B | 1.65B | 1.02B | 1.99B | 3.18B | 2.67B | 1.62B | 2.61B | 2.56B | 2.05B | 1.24B | -642M | 865M | 869M |
| Effective Tax Rate % | 4.86% | -3.54% | -0.35% | -105.29% | 9.58% | 7.62% | 5.26% | 5.38% | 5.94% | -73.53% | 13.44% | 22.2% | 25.5% | 27.4% | 19.76% | 31.54% | 11.54% | 20.29% | 16.97% | 11.03% | 15.29% | 29.43% | 19.03% | 49.68% | 22.12% | 24.79% | 35.53% | 28% | -24.77% | 28.1% | 31.06% |
| Net Income | 7.49B | 7.77B | 8.02B | 2.13B | 31.36B | 22.15B | 9.16B | 16.27B | 11.15B | 21.3B | 7.21B | 6.97B | 9.08B | 11.65B | 9.79B | 8.71B | 8.27B | 8.63B | 8.02B | 8.21B | 11.02B | 7.61B | 11.33B | 3.91B | 9.13B | 7.79B | 3.73B | 3.18B | 3.35B | 2.21B | 1.93B |
| Net Margin % | 11.83% | 12.42% | 12.6% | 3.58% | 31.26% | 27.25% | 21.99% | 39.52% | 20.79% | 40.55% | 13.66% | 14.26% | 18.3% | 22.58% | 17.91% | 14.26% | 12.33% | 17.27% | 16.61% | 16.95% | 22.79% | 16.05% | 21.58% | 8.65% | 28.19% | 24.14% | 12.6% | 19.62% | 24.74% | 17.7% | 17.06% |
| Net Income Growth % | -4.78% | -3.12% | 276% | -93.2% | 41.62% | 141.81% | -43.72% | 45.91% | -47.65% | 195.29% | 3.57% | -23.28% | -22.05% | 19.03% | 12.43% | 5.29% | -4.25% | 7.61% | -2.27% | -25.53% | 44.86% | -32.84% | 189.82% | -57.16% | 17.18% | 109.02% | 17.21% | -5.13% | 51.42% | 14.72% | 22.64% |
| Net Income (Continuing) | 7.52B | 7.79B | 8.05B | 2.17B | 31.4B | 22.46B | 6.67B | 10.87B | 11.18B | 21.35B | 7.23B | 6.97B | 9.12B | 11.41B | 9.02B | 7.86B | 8.21B | 8.63B | 8.05B | 8.26B | 11.04B | 7.62B | 11.34B | 1.63B | 9.16B | 7.54B | 3.72B | 4.97B | 3.23B | 2.08B | 1.76B |
| Discontinued Operations | 0 | 25M | 11M | 0 | -1M | -268M | 2.53B | 5.43B | 10M | -1M | 17M | 17M | -7M | 269M | 794M | 885M | 88M | 14M | -2M | -3M | 433M | -31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 303M | 299M | 294M | 274M | 256M | 262M | 235M | 303M | 351M | 348M | 296M | 278M | 321M | 313M | 418M | 431M | 452M | 432M | 184M | 114M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 50M |
| EPS (Diluted) | 1.31 | 1.36 | 1.41 | 0.37 | 5.47 | 3.88 | 1.63 | 2.87 | 1.87 | 3.52 | 1.17 | 1.11 | 1.41 | 1.69 | 1.30 | 1.11 | 1.02 | 1.23 | 1.19 | 1.18 | 1.52 | 1.02 | 1.49 | 0.54 | 1.46 | 1.22 | 0.59 | 0.78 | 0.85 | 0.56 | 0.50 |
| EPS Growth % | -5.05% | -3.55% | 279.85% | -93.22% | 41.01% | 138.58% | -43.29% | 53.67% | -46.94% | 200.58% | 5.09% | -21.24% | -16.32% | 29.59% | 17.85% | 8.44% | -17.07% | 3.47% | 0.46% | -22.16% | 49.02% | -31.54% | 175.93% | -63.01% | 19.67% | 106.78% | -24.36% | -8.24% | 51.79% | 12% | 19.05% |
| EPS (Basic) | - | 1.36 | 1.42 | 0.38 | 5.59 | 3.95 | 1.65 | 2.92 | 1.90 | 3.57 | 1.18 | 1.13 | 1.43 | 1.71 | 1.32 | 1.11 | 1.03 | 1.23 | 1.19 | 1.19 | 1.52 | 1.03 | 1.51 | 0.54 | 1.48 | 1.25 | 0.60 | 0.81 | 0.89 | 0.58 | 0.52 |
| Diluted Shares Outstanding | 5.73B | 5.69B | 5.7B | 5.71B | 5.73B | 5.71B | 5.63B | 5.67B | 5.98B | 6.06B | 6.16B | 6.26B | 6.42B | 6.89B | 7.51B | 7.87B | 8.07B | 7.04B | 6.75B | 6.94B | 7.27B | 7.41B | 7.61B | 7.29B | 6.24B | 6.36B | 6.37B | 6.32B | 3.94B | 3.95B | 3.86B |
| Basic Shares Outstanding | 5.69B | 5.68B | 5.66B | 5.64B | 5.61B | 5.6B | 5.55B | 5.57B | 5.87B | 5.97B | 6.09B | 6.18B | 6.35B | 6.81B | 7.44B | 7.82B | 8.04B | 7.01B | 6.73B | 6.92B | 7.24B | 7.36B | 7.53B | 7.21B | 6.16B | 6.24B | 6.21B | 6.13B | 3.79B | 3.82B | 3.71B |
| Dividend Payout Ratio | - | 125.75% | 118.6% | 433.52% | 28.64% | 39.41% | 92.15% | 49.43% | 71.53% | 35.95% | 101.41% | 99.63% | 72.79% | 56.49% | 66.76% | 71.61% | 73.63% | 64.25% | 106.44% | 97.14% | 62.76% | 73% | 44.85% | 111.33% | 34.71% | 34.86% | 58.96% | 57.25% | 29.13% | 39.81% | 39.97% |
Pipeline execution and IRA
As reported in recent financial statements, Pfizer's revenue trajectory exhibits significant volatility, with quarterly growth rates fluctuating between a 40% contraction in 2023Q4 and a 31.2% expansion in 2024Q3, reflecting the ongoing transition away from pandemic-era product demand toward a more diversified, acquisition-led commercial portfolio.
The erratic revenue performance suggests that the company is struggling to establish a consistent organic growth baseline following the post-COVID normalization. Investors should monitor whether the recent integration of Seagen can provide the necessary stability to offset the anticipated loss of exclusivity for legacy blockbusters.
Based on reported figures, Pfizer's gross margins have shown notable inconsistency, ranging from a low of 41% in 2023Q4 to a peak of 74.9% in 2025Q3, indicating that the product mix shift between high-margin internal assets and lower-margin partnered collaborations remains a primary driver of profitability.
The wide variance in gross margins suggests that the company's profitability is highly sensitive to the specific composition of its quarterly sales. This instability warrants further investigation into whether the current cost-realignment programs are sufficient to protect margins against the inflationary pressures inherent in complex biologic manufacturing.
According to the provided income statement data, operating margins have experienced sharp contractions, falling from 33.7% in 2025Q1 to 21.0% by 2025Q4, which suggests that the company is currently failing to scale its operating expenses efficiently in proportion to its gross profit generation.
The inability to maintain consistent operating leverage appears to be a byproduct of the heavy integration costs associated with recent large-scale acquisitions. Analysts should remain cautious, as the current SG&A and R&D spending levels may be masking underlying inefficiencies in the company's core operational structure.
As evidenced by the dramatic swing from a $3.3 billion net loss in 2023Q4 to a $4.5 billion profit in 2024Q3, Pfizer's reported net income is frequently distorted by non-operating items, inventory write-downs, and the complex accounting treatment of its various pharmaceutical alliance revenue streams.
The frequent divergence between operating income and net income suggests that investors should prioritize normalized earnings metrics over headline GAAP figures. The presence of significant quarterly fluctuations in EPS, including periods of negative profitability, indicates that the company's bottom line remains highly susceptible to one-time charges.
While management emphasizes the long-term value of its recent acquisitions, the income statement data reveals that the company's reliance on external innovation has yet to yield a stable earnings profile, with recent quarters showing significant volatility in both operating margins and bottom-line profitability metrics.
Short-sellers may focus on the potential for further margin compression as the company navigates the integration of high-cost assets while simultaneously facing mandatory price negotiations under the IRA. The current strategy appears to prioritize growth at the expense of near-term earnings stability, which may not be sustainable.
Quick answers to the most common questions about buying PFE stock.
For fiscal year 2025, Pfizer Inc. (PFE) reported total revenue of $62.58B. This represents a 453.5% increase compared to $11.31B in 1996.
Pfizer Inc. (PFE) is profitable, generating $7.77B in net income for the fiscal year ending 2025 with a net profit margin of 12.4%.
Pfizer Inc. (PFE) reported an operating income of $15.44B, resulting in an operating profit margin of 24.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Pfizer Inc. (PFE) generated $44.01B in gross profit for the year, representing a gross profit margin of 70.3%. This demonstrates the company's core pricing power and production efficiency.