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 net cost savings of approximately $4.5 billion 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 from changes to the Medicare program due to the Inflation Reduction Act, which could impact sales by $1 billion.
Looking ahead to 2025, Pfizer expects earnings in the range of $2.80 to $3 per share, excluding one-time items. Investors are closely monitoring Pfizer’s long-term financial health and drug pipeline, particularly its potential entry into the weight loss drug market with danuglipron, an experimental obesity pill.
Pfizer managed to avoid a proxy battle with activist investor Starboard Value, who holds a significant stake in the company. The deadline for nominating board members for the current year has passed. The company’s strong fourth-quarter performance was partly driven by higher-than-expected demand for its Covid products, including the antiviral pill Paxlovid, which generated $727 million in sales.
Additionally, Pfizer’s Covid shot recorded $3.4 billion in revenue, a decrease of $2 billion from the same period a year ago, primarily due to reduced global Covid vaccinations and contracted doses. Excluding Covid products, Pfizer reported a 12% increase in revenue for the fourth quarter, driven by approved cancer products from Seagen and sales of Vyndaqel drugs used to treat cardiomyopathy.
Revenue growth was also supported by Pfizer’s blood thinner Eliquis, which posted $1.83 billion in revenue for the quarter, exceeding analyst expectations. However, sales of Eliquis may be impacted in 2026 by a new pricing structure for certain Medicare patients as a result of negotiations with the federal government under the Inflation Reduction Act.
Pfizer’s vaccine for respiratory syncytial virus (RSV), Abrysvo, generated $198 million in revenue for the fourth quarter, a 62% decline from the previous year. The decrease was attributed to lower U.S. vaccination rates among older adults following updated recommendations from the Centers for Disease Control and Prevention, limiting the market opportunity for RSV shots.
