PF

Pfizer Inc. stock research

Jul 2, 2023

FY2023 Q2

Pfizer (PFE) Gross Margin — Quarter Ended Jul 2, 2023

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit and cost of revenue also declined. Gross margin improved relative to both periods, reflecting a shift in the relationship between revenue and cost of revenue.

Gross margin takeaway

Quarter ended Jul 2, 2023 · FY2023 Q2

Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit and cost of revenue also declined. Gross margin improved relative to both periods, reflecting a shift in the relationship between revenue and cost of revenue.

  • The gross margin was higher than in the preceding quarter and the year-ago quarter, with cost of revenue declining more than revenue on a relative basis compared to both periods.
  • Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, but gross margin was higher. Versus the same quarter last year, revenue and gross profit and cost of revenue were also lower, while gross margin was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

75.1%

Gross profit

$9.8B

Revenue

$13.0B

Cost of revenue

$3.2B

Quarter-over-quarter change

+1.5 pts

Year-over-year change

+6.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 2, 2023$18.5B$13.6B$4.9B73.6%
Jul 2, 2023$13.0B$9.8B$3.2B75.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Apr 2, 2023

+1.5 pts

Year-over-year change

Jul 3, 2022

+6.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin was higher than in the preceding quarter and the year-ago quarter, with cost of revenue declining more than revenue on a relative basis compared to both periods.

Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, but gross margin was higher. Versus the same quarter last year, revenue and gross profit and cost of revenue were also lower, while gross margin was higher.

Monitor the proposed acquisition of Seagen and the planned divestiture of the early-stage rare disease gene therapy portfolio, as these business development activities may influence future revenue and cost structures.

PFE Gross Margin — Quarter Ended Jul 2, 2023