Pfizer Q4 Earnings Exceed Estimates Amid $1 Billion 2025 Sales Hit Warning

Pfizer Inc. reported strong fourth-quarter earnings, with revenues of $17.8 billion, surpassing analyst expectations and reflecting a 21% increase compared to the previous year. The full-year revenue reached $63.6 billion, up 7%, driven primarily by sales of legacy drugs and Covid-related products, despite a decline in Covid vaccine sales. Adjusted earnings per share were $0.63, exceeding consensus estimates. Looking ahead, Pfizer reaffirmed its 2025 revenue guidance of $61 billion to $64 billion, while announcing a cost-saving target of $4.5 billion by the end of 2025. However, the company faces challenges such as impending Medicare price negotiations and an expected $1 billion hit to 2025 sales due to changes in the Medicare program. Despite the positive results, the stock dipped about 1% amid concerns regarding future revenue streams and patent expirations.