Pfizer Reports Q1 Results: Revenue Decline and Strong Earnings

Pfizer Stock (NYSE: PFE) recently announced its Q1 results, revealing a revenue shortfall while earnings surpassed analysts’ expectations. The company posted a revenue of $13.7 billion and adjusted earnings of $0.92 per share, missing the consensus estimates of $14.1 billion and $0.68, respectively. Additionally, Pfizer reaffirmed its full-year guidance.

Stock Performance and Investor Sentiment

Since the start of the year, PFE Stock has lagged behind the S&P 500 index, with a return of -13% compared to the index’s 6% decline. Investor sentiment has been adversely affected by recent setbacks, including the halting of its experimental treatment for sickle cell disease and two obesity pills, particularly danuglipron, due to safety concerns.

Q1 Revenue Breakdown

Pfizer’s Q1 revenue of $13.7 billion marked an 8% year-over-year decline. While Vyndaqel sales increased by 33%, reaching $1.5 billion, Paxlovid sales dramatically dropped by 75% to $491 million. Furthermore, Comirnaty, Pfizer’s Covid-19 vaccine, generated $565 million in sales, a significant increase from the previous year’s $354 million revenue.

The company’s adjusted net income margin improved to 38.2% in Q1 2025, compared to 31.4% in the same quarter last year. This resulted in a 12% year-over-year rise in earnings, bringing it to $0.92 per share despite the revenue decline.

Future Outlook

Looking ahead, Pfizer maintains its 2025 sales outlook between $61 billion and $64 billion. Adjusted earnings are estimated to range from $2.80 to $3.00 per share, down from $63.6 billion in sales and $3.11 in earnings per share in 2024. The company has not yet factored in potential tariff-related challenges. Pfizer is committed to enhancing profitability, increasing its cost-savings target to $7.7 billion by year-end.

Stock Volatility

Despite the mixed results for Q1, Pfizer’s Stock has not seen significant movement post-announcement. Over recent years, PFE Stock performance has been inconsistent, with annual returns experiencing more volatility compared to the S&P 500.

Market Conditions and Investment Considerations

Amid current macroeconomic uncertainties, particularly concerning tariffs and trade wars, analysts question whether PFE will continue to underperform the S&P in the next year or experience a turnaround. While the model for Pfizer will be updated to reflect recent results, PFE Stock appears appealing at this price level. Trading at $23, it represents 8 times trailing earnings of $2.91 per share, significantly lower than its average P/E ratio of 13 times over the past five years. Although some downward adjustment in valuation may be appropriate given recent revenue trends, the disparity currently seems excessive.

Comparative Analysis

While PFE Stock appears undervalued, it is useful to assess how Pfizer’s Peers perform on key financial metrics. For a deeper examination of various companies across industries, refer to the Peer Comparisons.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.