By Samiat Apr, 29, 2025 Business

Will Pfizer Stock Rebound After a Mixed Q1 2025?

Pfizer (PFE) reported mixed first-quarter 2025 earnings, with revenue falling short of expectations while earnings surpassed analyst estimates. The company posted $13.7 billion in revenue, missing the $14.1 billion consensus estimate, but delivered adjusted earnings per share (EPS) of $0.92, significantly outperforming expectations of $0.68. Pfizer also reaffirmed its full-year guidance, signaling confidence in its outlook.

Stock Performance & Market Sentiment

Since the beginning of 2025, Pfizer stock has underperformed the broader market, declining 13%, while the S&P 500 has fallen by 6%. Investor sentiment has been negatively impacted by recent setbacks, including:

• The halt of its experimental sickle cell disease treatment

• The discontinuation of two obesity drugs, including danuglipron, due to safety concerns

For investors looking for stability, diversified investment portfolios such as the High-Quality portfolio—which has outperformed the S&P 500 with over 91% returns since inception—may offer alternative opportunities.

Q1 2025 Financial Highlights

• Revenue: $13.7 billion (-8% YoY)

• Vyndaqel sales: $1.5 billion (+33% YoY)

• Paxlovid sales: $491 million (-75% YoY)

• Comirnaty (COVID-19 vaccine) sales: $565 million (up from $354 million in Q1 2024)

• Adjusted net income margin: 38.2%, up from 31.4% in the previous year

• Adjusted EPS: $0.92, a 12% YoY increase, despite a revenue decline

Outlook: Can Pfizer Stock Rebound?

Despite the revenue decline, Pfizer’s profitability improved, driven by cost efficiencies and strong sales of Vyndaqel and Comirnaty. However, continued pressure from declining Paxlovid sales and setbacks in its drug pipeline remain concerns.

The stock's ability to rebound will likely depend on:

• Pipeline developments and new drug approvals

• Cost management initiatives to sustain profitability

• Long-term growth strategies in key therapeutic areas

While Pfizer remains a global pharmaceutical leader, investors will be watching upcoming earnings reports and strategic moves closely to assess whether PFE stock can recover in 2025.

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