Pfizer (PFE) earnings Q1 2025

Pfizer on Tuesday expanded its cost-cutting efforts and reported first-quarter profit that topped estimates, even as the company’s sales fell, largely due to dwindling Covid revenue.

The company previously said its cost-cutting program would deliver overall net cost savings of roughly $4.5 billion by the end of 2025. On Tuesday, Pfizer said it now expects additional savings of roughly $1.2 billion, primarily in selling, informational and administrative expenses, by the end of 2027. 

That includes expected research and organization re-organization cost savings of around $500 million by the end of 2026, the company added. Those savings will be reinvested into Pfizer’s product pipeline. 

Pfizer has a separate multiyear initiative to slash costs, with the first phase of the effort slated to deliver $1.5 billion in savings by the end of 2027.

The cuts aim to help the pharmaceutical giant recover from the rapid decline of its Covid business and stock price over the last few years, and appear to be paying off.

Here’s what the company reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: 92 cents adjusted vs. 66 cents expected
• Revenue: $13.72 billion vs. $13.91 billion expected

The results come as drugmakers brace for President Donald Trump’s planned tariffs on pharmaceuticals imported into the U.S. – his administration’s bid to boost U.S. manufacturing of medications. 

Unlike other companies grappling with evolving trade policy, Pfizer did not revise its outlook.

The company maintained its full-year 2025 outlook, forecasting sales of $61 billion to $64 billion, with a similar performance from its Covid products as seen in 2024, however Pfizer noted in its earnings release that the guidance “does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time.”

Pfizer still expects that changes to the Medicare program resulting from the Inflation Reduction Act will hurt sales by $1 billion, dampening growth by approximately 1.6% compared to 2024.

Stripping out one-time items, the company expects 2025 earnings to be in the range of $2.80 to $3 a share. 

“With the underlying strength of our business, we believe we can be agile in navigating an uncertain and volatile external environment,” CEO Albert Bourla said in a statement.

For the first quarter, the company booked net income of $2.97 billion, or 52 cents per share. That compares with net income of $3.12 billion, or 55 cents per share, during the same period a year ago. 

Excluding certain items, including restructuring charges and costs associated with intangible assets, the company posted earnings per share of 92 cents for the quarter.

Pfizer reported revenue of $13.72 billion for the first quarter, down 8% from the same period a year ago.

This story is developing. Please check back for updates.