Pfizer Inc. stock research
FY2025 Q1
Pfizer (PFE) Gross Margin — Quarter Ended Mar 30, 2025
Revenue declined sequentially and year-over-year, while gross profit also decreased but cost of revenue dropped more sharply, resulting in a higher gross margin. The gross margin was above both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Mar 30, 2025 · FY2025 Q1
Revenue declined sequentially and year-over-year, while gross profit also decreased but cost of revenue dropped more sharply, resulting in a higher gross margin. The gross margin was above both the prior quarter and the same quarter last year.
- The improvement in gross margin was primarily due to a proportionally larger decrease in cost of revenue compared to revenue, particularly versus the prior quarter. This aligns with the reported shift in revenue composition, including lower Paxlovid sales and growth in other products.
- Compared to the preceding quarter, gross margin strengthened significantly. Versus the same quarter a year ago, gross margin showed a slight improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.3%
Gross profit
$10.9B
Revenue
$13.7B
Cost of revenue
$2.8B
Quarter-over-quarter change
+12.5 pts
Year-over-year change
+2.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 30, 2025 | $13.7B | $10.9B | $2.8B | 79.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+12.5 pts
Year-over-year change
Mar 31, 2024
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was primarily due to a proportionally larger decrease in cost of revenue compared to revenue, particularly versus the prior quarter. This aligns with the reported shift in revenue composition, including lower Paxlovid sales and growth in other products.
Compared to the preceding quarter, gross margin strengthened significantly. Versus the same quarter a year ago, gross margin showed a slight improvement.
Monitor the trajectory of cost of revenue, as it may be influenced by product mix changes and the sustainability of lower levels.