Pfizer Inc. stock research
FY2024 Q4
Pfizer (PFE) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased slightly from the prior quarter, while gross profit decreased, resulting in a lower gross margin. Compared to the same quarter last year, revenue grew significantly and cost of revenue declined, leading to a higher gross profit and a much improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased slightly from the prior quarter, while gross profit decreased, resulting in a lower gross margin. Compared to the same quarter last year, revenue grew significantly and cost of revenue declined, leading to a higher gross profit and a much improved gross margin.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue decreased from the year-ago quarter while revenue increased, driving gross margin expansion.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin strengthened substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.7%
Gross profit
$11.9B
Revenue
$17.8B
Cost of revenue
$5.9B
Quarter-over-quarter change
-3.5 pts
Year-over-year change
+18.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $14.9B | $11.5B | $3.4B | 77.3% |
| Jun 30, 2024 | $13.3B | $10.0B | $3.3B | 75.2% |
| Sep 29, 2024 | $17.7B | $12.4B | $5.3B | 70.3% |
| Dec 31, 2024 | $17.8B | $11.9B | $5.9B | 66.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2024
-3.5 pts
Year-over-year change
Dec 31, 2023
+18.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Cost of revenue decreased from the year-ago quarter while revenue increased, driving gross margin expansion.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin strengthened substantially.
Monitor the trajectory of cost of revenue relative to revenue, as it was the primary factor in margin changes, with the filing noting pricing pressures and working capital management as areas of focus.