Pfizer Inc. stock research
FY2025 Q4
Pfizer (PFE) Gross Margin — Quarter Ended Dec 31, 2025
In the current quarter, revenue was higher than the prior quarter but lower than the same quarter a year earlier. Gross profit was lower than the prior quarter and higher than the year-ago quarter, while cost of revenue was higher than the prior quarter and lower than the year-ago quarter, resulting in a gross margin that weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
In the current quarter, revenue was higher than the prior quarter but lower than the same quarter a year earlier. Gross profit was lower than the prior quarter and higher than the year-ago quarter, while cost of revenue was higher than the prior quarter and lower than the year-ago quarter, resulting in a gross margin that weakened sequentially but improved year-over-year.
- The most observable margin driver is the change in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue increased at a faster rate than revenue, putting pressure on margin. Compared to the year-ago quarter, cost of revenue declined while revenue was slightly lower, leading to margin expansion.
- Sequentially, gross margin weakened from the prior quarter, as revenue growth was outpaced by a larger increase in cost of revenue. Year-over-year, gross margin improved, as cost of revenue decreased more than the decline in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.0%
Gross profit
$12.3B
Revenue
$17.6B
Cost of revenue
$5.3B
Quarter-over-quarter change
-5.0 pts
Year-over-year change
+3.2 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 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% |
| Dec 31, 2025 | $17.6B | $12.3B | $5.3B | 70.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2025
-5.0 pts
Year-over-year change
Dec 31, 2024
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the change in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue increased at a faster rate than revenue, putting pressure on margin. Compared to the year-ago quarter, cost of revenue declined while revenue was slightly lower, leading to margin expansion.
Sequentially, gross margin weakened from the prior quarter, as revenue growth was outpaced by a larger increase in cost of revenue. Year-over-year, gross margin improved, as cost of revenue decreased more than the decline in revenue.
Monitor the relationship between revenue growth and cost of revenue changes in upcoming quarters.