In this article, Pfizer reported fourth-quarter earnings and revenue that exceeded estimates due to strong sales of the company’s Covid products and effective cost-cutting measures. The company’s performance for the fourth quarter compared favorably with Wall Street expectations based on an analyst survey by LSEG. Despite this positive outcome, Pfizer’s shares experienced a slight decline in morning trading on Tuesday.
The results mark the end of a crucial year for Pfizer, which has been implementing significant cost reductions to recover from the challenges faced by its Covid business and stock price in recent years. Pfizer aims to achieve approximately $4.5 billion in net cost savings by the end of 2025 through its cost-cutting initiatives.
For the fourth quarter, Pfizer reported a net income of $410 million, or 7 cents per share, a significant improvement from a net loss of $3.37 billion, or a loss of 60 cents per share, in the same period the previous year. Excluding certain items, the company posted earnings per share of 63 cents for the quarter. Revenue for the fourth quarter stood at $17.76 billion, reflecting a 22% increase from the same period a year ago.
Pfizer reaffirmed its full-year 2025 outlook, projecting sales of $61 billion to $64 billion, with a similar performance expected from its Covid products as in 2024. The company anticipates challenges due to changes in the Medicare program resulting from the Inflation Reduction Act, which are projected to impact sales by $1 billion. Adjusting for one-time items, Pfizer expects 2025 earnings to fall within the range of $2.80 to $3 per share.
Investors are closely monitoring Pfizer’s long-term financial health and drug pipeline. Of particular interest is whether Pfizer can secure a share of the growing weight loss drug market with its experimental obesity pill, danuglipron. The company managed to avoid a proxy battle with activist investor Starboard Value, who holds a significant stake in Pfizer, as the deadline for nominating board members for the year has passed.
Pfizer’s strong fourth-quarter performance was partly driven by higher-than-expected demand for its Covid products. Sales of Paxlovid, the antiviral pill, reached $727 million for the quarter, a significant increase from the previous year. The company attributed this growth to robust demand, particularly in the U.S. during a recent Covid surge, and a one-time delivery of 1 million treatment courses of Paxlovid to the federal government.
The revenue generated by Pfizer’s Covid shot amounted to $3.4 billion, a decrease of $2 billion from the same period a year ago. The decline was primarily due to reduced global Covid vaccinations and contracted doses of the shot. Excluding Covid products, Pfizer reported a 12% increase in revenue for the fourth quarter, driven by approved cancer products from Seagen, acquired in 2023 for $43 billion.
Revenue was also boosted by sales of Pfizer’s Vyndaqel drugs, used to treat a specific type of cardiomyopathy, which recorded $1.55 billion in sales, a 61% increase from the previous year. Additionally, the blood thinner Eliquis, co-marketed with Bristol Myers Squibb, contributed $1.83 billion in revenue for the quarter, a 14% rise from the previous year.
Pfizer’s vaccine for respiratory syncytial virus (RSV), known as Abrysvo, generated $198 million in revenue for the fourth quarter, a 62% decrease from the previous year. The decline was attributed to reduced U.S. vaccination rates among older adults following recommendations from the Centers for Disease Control and Prevention, limiting the market opportunity for RSV shots.
