AI Takeaway
Pfizer's FY2025 10-K shows a modest revenue decline of 1.6% to $62.6B alongside improved cost discipline, resulting in net income of $7.8B and solid operating cash flow of $11.7B, though rising long-term debt warrants attention.
Revenue
$62.58B
-1.65% YoY
EPS (Basic)
$1.37
-3.52% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 1.6% year-over-year from $63.6B to $62.6B in FY2025, reflecting ongoing normalization of COVID-related product demand and competitive pressures across the portfolio. Despite the top-line softness, the company maintained a double-digit net margin of approximately 12.4%.
Source: Source: 10-K Income Statement
Cost of revenue declined 10.0% YoY to $16.1B, and SG&A expenses fell 6.4% to $13.8B, demonstrating meaningful progress on Pfizer's cost realignment program. These reductions helped partially offset the revenue decline and supported profitability.
Source: Source: 10-K Income Statement
Operating cash flow remained robust at $11.7B, though it declined 8.2% from $12.7B in the prior year. Depreciation and amortization of $6.6B contributed significantly to non-cash add-backs, reflecting the company's large intangible asset base from prior acquisitions.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockPfizer's long-term debt rose to $61.6B in FY2025, a 7.4% increase, resulting in a debt-to-equity ratio of 1.40x. Servicing this debt constrains financial flexibility and increases vulnerability to interest rate changes or revenue shortfalls. Sustained deleveraging will depend on consistent free cash flow generation.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.66 versus the $0.58 analyst consensus — a +14.3% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $62.58B | $63.63B | -1.65% |
Cost of Revenue | $16.07B | $17.85B | -9.99% |
Net Income | $7.77B | $8.03B | -3.24% |
EPS (Basic) | $1.37 | $1.42 | -3.52% |
EPS (Diluted) | $1.36 | $1.41 | -3.55% |
SG&A Expense | $13.79B | $14.73B | -6.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $208.16B | $213.4B | -2.45% |
Current Assets | $42.9B | $50.36B | -14.81% |
Total Liabilities | $121.39B | $124.9B | -2.81% |
Current Liabilities | $36.98B | $42.99B | -13.98% |
Stockholders' Equity | $86.48B | $88.2B | -1.96% |
Cash & Equivalents | $1.14B | $1.04B | +9.49% |
Long-Term Debt | $61.64B | $57.41B | +7.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $11.7B | $12.74B | -8.16% |
Investing Cash Flow | $-1.35B | $2.65B | -150.94% |
Financing Cash Flow | $-10.3B | $-17.14B | +39.88% |
D&A | $6.59B | $7.01B | -6.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 12.4% | — | — |
ROE | 9.0% | — | — |
ROA | 3.7% | — | — |
Current Ratio | $1.16 | — | — |
Debt to Equity | $1.404 | — | — |
Other companies in Pharmaceuticals
Pfizer's revenue declined 1.6% year-over-year to $62.6B in FY2025, down from $63.6B in the prior year. The decline reflects continued normalization of COVID-related product revenues, though cost reductions helped protect net income, which came in at $7.8B.
The key takeaways from Pfizer's FY2025 10-K are a modest revenue decline to $62.6B (-1.6%), meaningful cost discipline with cost of revenue down 10.0% and SG&A down 6.4%, and solid operating cash flow of $11.7B. However, long-term debt rose 7.4% to $61.6B, and EPS declined 3.5% to $1.36, signaling ongoing earnings pressure.
Based on the FY2025 financial data, key risks include Pfizer's elevated long-term debt of $61.6B (debt-to-equity of 1.40x), continued revenue normalization post-COVID, and a relatively thin current ratio of 1.16x. These factors collectively point to financial flexibility constraints and revenue replacement challenges as the primary company-specific risks.
Yes, Pfizer remained profitable in FY2025 with net income of $7.8B and a net margin of approximately 12.4%, despite a 1.6% revenue decline. Operating cash flow of $11.7B further underscores the company's ability to generate meaningful cash from its operations.
Pfizer's financial health is stable but carries notable leverage risk, with $61.6B in long-term debt and a debt-to-equity ratio of 1.40x following major acquisition activity. The company's current ratio of 1.16x and operating cash flow of $11.7B provide adequate near-term liquidity, though sustained deleveraging will be critical to improving financial flexibility.