Pfizer Inc. stock research
FY2025 Q3
Pfizer (PFE) Gross Margin — Quarter Ended Sep 28, 2025
Revenue increased from the prior quarter but declined from the same quarter a year ago. Gross profit rose compared to the previous quarter and was slightly above the year-ago level, while cost of revenue was higher than the prior quarter but lower than a year ago, resulting in a gross margin that improved relative to both periods.
Gross margin takeaway
Quarter ended Sep 28, 2025 · FY2025 Q3
Revenue increased from the prior quarter but declined from the same quarter a year ago. Gross profit rose compared to the previous quarter and was slightly above the year-ago level, while cost of revenue was higher than the prior quarter but lower than a year ago, resulting in a gross margin that improved relative to both periods.
- The gross margin improvement compared to the year-ago quarter is accompanied by a lower cost of revenue and a gross profit that is similar to the prior year. Sequentially, the margin increase is associated with a higher gross profit relative to the increase in cost of revenue.
- Revenue was higher than the previous quarter but lower than the same quarter last year. Gross profit and gross margin both improved sequentially and year-over-year, while cost of revenue increased from the prior quarter but decreased from a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.9%
Gross profit
$12.5B
Revenue
$16.7B
Cost of revenue
$4.2B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+4.7 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2025 | $16.7B | $12.5B | $4.2B | 74.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2025
+0.7 pts
Year-over-year change
Sep 29, 2024
+4.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement compared to the year-ago quarter is accompanied by a lower cost of revenue and a gross profit that is similar to the prior year. Sequentially, the margin increase is associated with a higher gross profit relative to the increase in cost of revenue.
Revenue was higher than the previous quarter but lower than the same quarter last year. Gross profit and gross margin both improved sequentially and year-over-year, while cost of revenue increased from the prior quarter but decreased from a year ago.
A concrete item to monitor is the company's voluntary agreement with the U.S. government to implement measures designed to make certain drug prices more comparable to those in other developed countries, including participation in a direct purchasing platform.