Pfizer (PFE) Financials

Pfizer's financials over the past few years, through Q2 2025, reveal significant variability in profitability, cash flow, and balance sheet strength, reflecting shifts in revenue, investment activity, and debt management.

Positive Trends:

• Q2 2025 reported consolidated net income of $2.93 billion, showing profitability in the current quarter.
• Operating revenues in Q2 2025 reached $14.65 billion, indicating strong sales performance compared to earlier quarters in 2024.
• Gross profit margins remain healthy; for example, in Q2 2025 gross profit was $10.88 billion, a solid margin over costs of revenue ($3.78 billion).
• Consistent payment of dividends, with a per share amount recently at $0.86, supports shareholder returns and signals financial stability.
• Strong balance sheet at Q2 2025 with total assets of roughly $206 billion, and total equity approximating $89 billion, implying solid capitalization.
• Short-term and long-term investments remain significant, providing liquidity and income-generating capacity (e.g., $11.61 billion in short-term investments at Q2 2025).
• Net cash from investing activities in Q2 2025 was positive $3.95 billion, reflecting cash inflows from sale/maturity of investments exceeding purchases.
• The company generates positive operating cash flow in many quarters, with $2.33 billion net cash from operating activities in Q1 2025.

Neutral Observations:

• Fluctuations in restructuring charges and amortization expenses are typical in pharmaceutical industry due to R&D investments and portfolio adjustments.
• Weighted average shares outstanding have remained relatively stable around 5.6-5.7 billion diluted shares, indicating moderate changes in share count.

Challenges and Negative Trends:

• Q4 2023 and part of 2024 show weakened profitability and even net losses; e.g., Q4 2023 net income was negative $3.36 billion, driven by restructuring charges and other costs.
• Significant volatility in net cash from operating activities, from positive billions to negative values (e.g., negative $582 million in Q2 2025), mostly due to changes in working capital.
• High debt levels with total liabilities consistently above $117 billion as of Q2 2025 and sizeable repayments and issuances indicate active balance sheet management but increased leverage.
• Large swings in investing activities in prior periods like Q4 2023 with a $43 billion acquisition impacting cash flows and potentially the balance sheet.
• Cash interest paid remains high, over $1 billion in recent quarters, which could pressure cash flows despite solid earnings.
• Delayed recovery in income taxes paid and large deferred tax assets/liabilities might complicate effective tax rates and cash flow predictability.

Overall, Pfizer shows resilience with recovering revenues and profits in 2025 after challenging periods in late 2023 and early 2024. Strong asset base and investment income support stability, while careful management of debt and cash flow volatility remain key to watch. Investors should consider these dynamics alongside Pfizer's R&D pipeline and product portfolio to assess future growth and risk potential.