PFE Pfizer reported an 8% year-over-year drop in Q1 revenue, down to $13.7 billion—$370 million below expectations. However, adjusted earnings per share rose to $0.92, beating estimates by $0.24, thanks to strong cost management. COVID-related products continued to weigh on performance: Paxlovid sales plunged 76% year-over-year and missed forecasts, while Comirnaty jumped 62% and slightly exceeded projections. The company reaffirmed its 2025 revenue outlook of $61–$64 billion and adjusted EPS of $2.80–$3.00, though it cautioned that potential tariff effects haven't been factored in. Pfizer now targets $7.7 billion in cost reductions by 2027 through greater use of automation, AI, and streamlined processes.
After scrapping its obesity pill program over safety issues, Pfizer is looking at acquisitions to revive its cardiometabolic pipeline. The company faces long-term challenges including patent cliffs, regulatory threats from possible drug pricing changes, and waning investor confidence. Although it's cutting costs and investing in its R&D pipeline to steady the ship, Wall Street doubts Pfizer can replace the massive earnings it made during the COVID boom with new blockbuster drugs.