Pfizer Inc. stock research
FY2025 Q2
Pfizer (PFE) Gross Margin — Quarter Ended Jun 29, 2025
Revenue increased from the prior quarter and from the same quarter a year earlier, while gross profit remained flat sequentially and grew year over year. Cost of revenue rose notably, causing gross margin to decline compared to both periods.
Gross margin takeaway
Quarter ended Jun 29, 2025 · FY2025 Q2
Revenue increased from the prior quarter and from the same quarter a year earlier, while gross profit remained flat sequentially and grew year over year. Cost of revenue rose notably, causing gross margin to decline compared to both periods.
- The strongest observable driver of the margin change is the rise in cost of revenue, which grew at a faster rate than revenue, compressing the gross margin.
- Gross margin weakened sequentially and also weakened relative to the year-ago quarter, as the increase in cost of revenue outpaced revenue growth in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.2%
Gross profit
$10.9B
Revenue
$14.7B
Cost of revenue
$3.8B
Quarter-over-quarter change
-5.0 pts
Year-over-year change
-0.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2025 | $14.7B | $10.9B | $3.8B | 74.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2025
-5.0 pts
Year-over-year change
Jun 30, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin change is the rise in cost of revenue, which grew at a faster rate than revenue, compressing the gross margin.
Gross margin weakened sequentially and also weakened relative to the year-ago quarter, as the increase in cost of revenue outpaced revenue growth in both comparisons.
Monitor the trajectory of cost of revenue, which increased materially from both prior periods; also note the company's disclosure of a significant in-licensing agreement with an upfront payment subsequent to quarter end.