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The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

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The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

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Industries included in the sector are insurance and managed care, medical products and facilities, pharmacy services, and pharmaceutical companies.

Fortune Sector Leaders: Health Care

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

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WMA-2024-Pfizer

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

WMAC 2023-Pfizer

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The 300 companies on this list are transforming industries from the inside out.

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F500-2023-038-Pfizer

The pharmaceutical giant rode its groundbreaking mRNA COVID-19 vaccine and antiviral pill Paxlovid to record revenue in 2022; the $100.3 billion it raked in (up from $81.3 billion in 2021) catapulted the company 40 spots on this year’s Fortune 500 list. 
<ul> 
 	<li>Pfizer is planning to sell its COVID-19 vaccine commercially in 2023, rather than contracting with the U.S. government, with a target price between $110 and $130 per dose.</li> 
 	<li>Still, it expects revenue to drop as the demand for COVID vaccines eases in 2023. Pfizer has a slate of other new drugs in its pipeline, such as the Respiratory Syncytial Virus (RSV) vaccine and medication for migraines.</li> 
 	<li>The company is expected to lose patent protections for some key drugs, including Ibrance, used for breast cancer treatment, between 2025 and 2030.</li> 
 	<li>It has acquired other biotech or smaller pharma companies to bolster its pipeline in the future. Key 2022 deals include the $5.4 billion purchase of Global Blood Therapeutics and the $11.6 billion acquisition of Biohaven.</li> 
</ul>

Industrials came out on top this year, with 22 companies featured on the list.

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WMAC-2022-04-Pfizer

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F500 2022-Pfizer

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<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;How do you balance being one of the world’s saviors during a pandemic without being perceived as gloating or, more important, gouging a global population in need? That’s the tricky needle Pfizer has had to thread, given the company’s status as one of the most effective coronavirus vaccine manufacturers in the world. Pfizer recorded 2020 revenues of about $42 billion—but that largely excludes the post-winter period, when Pfizer’s COVID vaccine was granted emergency use authorization by the FDA. The company expects to bring in $26 billion in COVID vaccine sales alone this year, about 60% of its total 2020 revenues, thanks to its sprawling relationships with governments and pandemic-focused organizations across the globe. An added benefit? Via its partnership with Germany’s BioNTech, the maker of the “little blue pill” is now synonymous with mRNA vaccine technology that could feed its pipeline in infectious disease treatments and other therapeutics for years to come.&quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:11}">How do you balance being one of the world’s saviors during a pandemic without being perceived as gloating or, more important, gouging a global population in need? That’s the tricky needle Pfizer has had to thread, given the company’s status as one of the most effective coronavirus vaccine manufacturers in the world. Pfizer recorded 2020 revenues of about $42 billion—but that largely excludes the post-winter period, when Pfizer’s COVID vaccine was granted emergency use authorization by the FDA. The company expects to bring in $26 billion in COVID vaccine sales alone this year, about 60% of its total 2020 revenues, thanks to its sprawling relationships with governments and pandemic-focused organizations across the globe. An added benefit? Via its partnership with Germany’s BioNTech, the maker of the “little blue pill” is now synonymous with mRNA vaccine technology that could feed its pipeline in infectious disease treatments and other therapeutics for years to come.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-77-Pfizer

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-215-Pfizer

Pfizer slips 17 spots this year, in large part because of the expiration last year of one of its more lucrative patents, for the fibromyalgia drug Lyrica. That eroded the drugmaker's revenue, which fell 4% overall in 2019. But Pfizer also made some big moves: After years of rumors that it would split up, Pfizer finally slimmed down, announcing over the summer that it would merge Upjohn, its off-patent drug division, with general drug company Mylan. Meanwhile, the pharmaceutical giant found some significant efficiencies in its operations: profits surged some 46%. The company, which is developing a promising COVID-19 vaccine in partnership with German drug company BioNTech, in July announced the U.S. government had ordered $1.95 billion worth of doses of the new treatment—to provide it to Americans for free, if the FDA approves the vaccine.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-064-Pfizer

Pfizer slipped a few spots, in large part because of the expiration last year of one of its more lucrative patents, for the fibromyalgia drug Lyrica. That eroded the drugmaker's revenue, which fell 4% overall in 2019. But Pfizer also made some big moves: After years of rumors that it would split up, Pfizer finally slimmed down, announcing over the summer that it would merge Upjohn, its off-patent drug division, with general drug company Mylan. Meanwhile, the pharmaceutical giant found some significant efficiencies in its operations: profits surged some 46%.

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This year's Fortune 500 marks the 64th running of the list.

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This year's Fortune 500 marks the 63rd running of the list.

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This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Pfizer is known for developing medications and vaccines, and for manufacturing them at dozens of factories around the world. Its treatments span a broad range of areas including oncology, rare diseases, inflammation and immunology, and vaccines. Oncology has become the company's primary strategic focus, with CEO Albert Bourla committing more than 40% of annual R&amp;D spending to cancer research. Pfizer significantly expanded its cancer portfolio through its 2023 acquisition of Seagen, gaining a suite of antibody-drug conjugate therapies including Padcev for bladder cancer and Adcetris for lymphoma. The company is also making a major push into the obesity market: its late 2025 acquisition of Metsera brought Pfizer back into the obesity space after an earlier internal program was scrapped, positioning it to compete against dominant players Novo Nordisk and Eli Lilly. During the COVID-19 pandemic, Pfizer developed a landmark and highly profitable vaccine in collaboration with the startup BioNTech; it also developed a treatment for COVID infections sold as Paxlovid. Pfizer was founded in 1849 by immigrants in New York City, which remains the site of its global headquarters.

Q2 2026

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Pfizer (PFE): Company Profile, Stock Price, News, Rankings

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Pfizer

pfizer

Good day, everyone, and welcome to Pfizer's Second Quarter twenty twenty five Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DiMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Pfizer's earnings call. Hello. Good morning, and welcome to Pfizer's earnings call. I'm Francesca DiMartino, chief investor relations officer. On behalf of the Pfizer team, thank you for joining us.

This call is being made available via audio webcast at pfizer.com. Earlier this morning, we released our results for the 2025 via a press release that is available on our website at pfizer.com. I am joined today by Doctor. Albert Bourla, our Chairman and CEO, and Dave Denton, our CFO. Albert and Dave have some prepared remarks and we will then open the call for questions.

Members of our leadership team will be available for the Q and A session. Before we get started, I want to remind you that we will be making forward looking statements and discussing certain non GAAP financial measures. I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning, and the disclosures in our SEC filings, which are all available on the IR website on pfizer.com. Forward looking statements on the call are subject to substantial risks and uncertainties that speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements. With that, I will turn the call over to Albert.

Thank you, Francesca. Good morning, Thank you for joining our call. Our business is performing well, and I'm pleased with the progress we achieved in the second quarter. We advanced and strengthened our R and D pipeline. We worked to maximize the value of our commercial portfolio and made further strides to expand our margins.

We continue to be actively engaged with policymakers as we navigate a complicated and rapidly evolving geopolitical environment, while also remaining focused on advancing our business. With our strong year to date performance, we are raising our adjusted diluted EPS guidance for full year 2025 and remain committed to our dividend. Our programs to expand margins through focus, technology and simplification are working very well. We are driving productivity gains by leveraging technology such as AI and automation, and we are also realizing the benefit of continued streamlining across our company. We believe Pfizer is well positioned to continue creating meaningful value for patients and our shareholders.

Our top strategic priority this year is, of course, improving R and D productivity. I'm proud of the outcomes you are driving and the meaningful milestones achieved during the quarter. Looking ahead, we believe key programs in our R and D portfolio offer significant opportunities to help address substantial patient needs and drive Pfizer's growth in the coming years. I will mention some highlights. Orexel is a medicine that is performing very well with rapid growth and encouraging progress in claiming leading class SER in new markets, such as Japan, United Kingdom, and Spain.

The clinical data in Orexio initially heavily treated, triple class exposed multiple myeloma indications continue to be encouraging, with median overall survival of greater than two years, which is more than double the historical median overall survival in this population. Moreover, the majority of responding patients are maintaining their response at thirty months. LREXIVO has the potential to be a leading standard of care with a differentiated clinical profile. It is a convenient, subcutaneous, fixed dosing regimen, the only one, that now includes a once every four week option for select patients. New data presented at the American Society of Clinical Oncology annual meeting in newly diagnosed patients demonstrated the Rexio's potential to move to earlier multiple myeloma treatment settings.

This data from Part I of the MEGNETIS MM6 study showed a confirmed response rate greater than ninety seven percent and the manageable safety profile in combination with daratumumab and lelanotib. The randomized portion of this phase three study is now enrolling very well. By executing on MAGNETIS MM6 and Telrexfus, other ongoing phase three trials, we aim to achieve label expansion that, if approved, would collectively increase the addressable population approximately fivefold in the growing multiple myeloma market, expected to reach approximately forty four billion by year 02/1930. Civvodatog Vedotin, or SV, is our first in class integrin beta-six ADC that could be a driver of growth later this decade. We are executing a robust development program with this investigational compound in non small cell lung cancer.

This includes our fully enrolled phase three study of SV monotherapy versus tocetaxel in previously treated non squamous patients that we expect data from next year. In the second line, plus population, we have observed a durable thirty one percent confirmed response rate, which is favorable versus historical data with docetaxel monotherapy. We are also enrolling a phase three study of SV in combination with a PD L1 checkpoint inhibitor in first line non small cell lung cancer with high PD L1 expression based on encouraging phase one data for this combination recently presented at ASCO. These results showed a fifty seven percent response rate and greater than ninety percent disease control, including responses in all patients with a tumor proportion score greater than fifty percent sample, which compares favorably to historical PD anti PD-one monotherapy. These results support an ambition to change standards of care to conventional chemotherapy sparing regimens by leveraging the potential synergy between the DOTIC A disease and PD-one checkpoint inhibitors.

With our ongoing and planned trials in non small cell lung cancer, SV has the potential to impact large patient populations, with a non small cell lung cancer market expected to reach over $60,000,000,000 by year 02/1930. Our strategy is intended to deliver a first approval in previously treated patients before moving into the first line setting, which is a non small cell lung cancer, includes more than half a million global patients. In hematology, we continue to promote the differentiated profile of hemoptysis. In the quarter, we saw positive top line data from the Phase III PASI study evaluating Hympazy for adults and adolescents with hemophilia A or B. The study's cohort of patients with inhibitors met its primary endpoint, demonstrating a statistically significant and clinically meaningful 93% reduction in annualized bleeding rate compared to on demand treatment in patients 12 years or older, which compares favorably to recent approved products for hemophilia A and hemophilia B.

These results further strengthen Hympaz's differentiated profile as the first once weekly fixed dose subcutaneous treatment for hemophilia A or B administered in a convenient prefilled auto injector. They also support the potential to expand its label to patients with hemophilia who develop inhibitors to factor replacement as we continue to execute on its launch in the previously approved noninhibitor population. We have seen considerable quarter over quarter growth, particularly in the hemophilia B market, where subcutaneous treatments are only recently available. And following EU and Japan approvals, at the end of last year, we are seeking reimbursement on pursuing early access pathways in other international markets as we grow our presence in the hemophilia market projected to reach nearly 10,000,000,000 by year 02/1930. Moving to our vaccine portfolio.

We are enthusiastic about our potential to deliver the first approved vaccine for C. Difficile infection. Our second generation investigational vaccine candidate builds upon encouraging results from the prior phase three PLOVER trial of our first generation candidate. This trial demonstrated one hundred percent efficacy against medically attended C. Diff infection despite not achieving the study's primary endpoint.

With our second generation C. Diff vaccine formulation, we have the potential to simplify the dosing schedule from three to two weeks. This candidate, now in phase two, increased the strength of the immune response fourfold compared to the first generation vaccine. Based on this newly announced phase two data, we are preparing for a phase three start before the end of this year. We will incorporate learnings from the previous CLOVER study to develop new primary endpoints focused on the prevention of severe disease outcomes rather than primary infection.

If approved, the vaccine could significantly reduce the health care burden of the nearly five hundred thousand annual C. Diff infections and approximately thirty thousand annual deaths in The U. S. Alone. In another one of our Phase three products, we finished dosing the last patient in our study of a vaccine candidate for Lyme disease.

If successful, we expect to submit for approval next year. We also continue to strengthen our portfolio by harnessing external innovation through strategic business development. The recent closing of our Global Ex China in licensing agreement with 3S Bio grants us exclusive rights to develop, manufacture and commercialize SSGG-seven zero seven, a bispecific antibody. Targeting PD-one and VEGF has the potential to deliver breakthroughs for patients in the next wave in PD-one immunotherapy, which is an established $55,000,000,000 market. With compelling monotherapy data in advanced non small cell lung cancer presented recently at ASCO, we view this promising cancer immunotherapy candidate as a seamless fit within Pfizer's oncology strategy, given our deep experience in the development of antibody therapeutics and our differentiated industry leading portfolio of ADCs.

We intend to share detail later this year for our plans for a Phase III program. With Pfizer's established presence and global reach, we believe seven zero seven has the potential to become a backbone therapy for multiple solid tumor types where the PDN1 VEDS mechanism could have significant impact. Across our pipeline, we continue to sharpen our focus on programs where the strength of our capabilities give us the greatest opportunities to address substantial patient needs. We look forward to sharing future updates about our programs. Now let's move to commercial.

Our commercial strategy is unlocking higher productivity and performance across both our US and international divisions. With several of our established brands, we are pleased with our continued market leadership and growth. We delivered another solid quarter for our Vyndaqel family, with 21% year over year operational growth. These products are the foundation of care for patients with a serious heart condition of ATTR cardiomyopathy, and we continue to see strong progress in diagnosing patients and providing broad access. While we continue to closely monitor the competitive impact of new entrants, we believe the Vyndaqel family is differentiated with a strong clinical profile contributing to continued growth.

With Eliquis, we are the clear leader with robust demand in a growing anticoagulant market. Our international commercial teams are driving higher growth versus the market in our key countries, with effective engagement with health care professionals to reinforce the favorable profile of these medicines. In The U. S, the BMS Pfizer alliance recently announced a new direct to PACE option for purchasing Eliquis via the Alliance's patient resource, Eliquis three sixty Samoa. This option offers uninsured, underinsured, or self pay patient an opportunity to significantly lower out of pocket costs for delegates.

Among some of our recently launched acquired brands, we are seeing strong underlying demand in competitive classes as we work to build expanded access and greater awareness and loyalty, of course, among health care professionals. With Norte, we continue driving strong commercial execution. We are pleased with the performance of new consumer campaigns and greater precision and effectiveness in sharing compelling clinical data with health care professionals. In The U. S, we achieved strong growth in total prescriptions, and with 47 market share, maintained leadership in the oral CGRP class, offset by pressure on net revenues from the impact of the IRA Medicare Part D redesign and the 340B program.

Internationally, we are achieving strong performance in several key markets where we already have access and are encouraged by the potential to unlock additional opportunities by continuing to expand access. PAXE, a new a key product in oncology portfolio, is demonstrating strong performance and we see multiple avenues for future growth. ADC for the treatment of adult patients with locally advanced metastatic urothelial cancer, Paltzem achieved high year over year operational growth of 38% in the quarter with growing demand and a one time favorable impact from a transition to a wholesaler distribution model for CGM products. Paltzem, in combination with pembrolizumab, has secured market share greater than 50% in first line LA metastatic UC, and is the standard of care first line treatment. Additionally, we continue to anticipate phase three readouts for PATSER in muscle invasive bladder cancer in two ongoing studies.

If successful and approved, we expect a significant expanded opportunity to treat patients with bladder cancer focused on the approximately twenty eight thousand in The U. S. With MIBC, approximately eighty percent of whom undergo cystectomy. Cibincon had strong 46% year over year operational growth with the quarter, driven by higher demand in The U. S.

And growth in key international markets where we have decided to focus. We believe there is additional market opportunities for shebinko in responding to the need among patients with atopic dermatitis. We are seeing the clear impact of recent positive data released for several of our oncology products. It has contributed to strong growth in helping to establish these products as standards of care. Lorbranad achieved 48% year over year operational growth in the quarter, and we expect continued strength through 2025.

It has a compelling efficacy profile supported by the CROWN study, where the median progression free survival was not reached after five years of follow-up. Lovrenna is emerging as a standard of care for patients with first line, R positive metastatic non small cell lung cancer. We saw continued momentum with Praftovi and Mektovi, with twenty three percent year over year operational growth in the second quarter. Results for the Phase III BREAKWATER trial showed the BRAFTOVI combination regimen double median overall survival versus standard of care for treatment naive patients with metastatic colorectal cancer with a BRAF FV600E mutation. This represents a significant advancement of the approximately four thousand patients diagnosed annually in The U.

S. With metastatic colorectal cancer with this mutation. They face a more than two fold greater mortality risk compared to patients with no no BRAF mutation. Xtandi contributed strong fourteen percent operational growth during this quarter. Demand is growing for patients with castration sensitive prostate cancer, and it is the top prescribed branded androgen receptor pathway inhibitor.

With the presentation of ASCO of long term overall survival data from the ARCHES trial, Xtant is now the first and only androgen receptor pathway inhibitor to demonstrate an overall survival benefit at five years in men with metastatic hormone sensitive prostate cancer. We also recently shared positive top line results from the phase three Embark study, making Xtandi the first and only androgen receptor inhibitor based regimen to demonstrate overall survival benefit in non metastatic hormone sensitive prostate cancer with high risk biochemical recurrence. This contributed to demand growth for Xtandi, and we achieved twenty seven percent share in new to brand prescriptions. These positive readouts indicate how we are continuing to invest and focus in areas where we have leadership and expertise, contributing to ongoing progress with our oncology portfolio. A strong performance in The U.

S. And international divisions showed why we remain confident in the commercial strategy we refined more than a year ago. In the quarter, for example, the key market and brand combinations that we prioritized in our international divisions are outperforming with strong mid to high single digit growth across all regions. We will continue to advance this commercial strategy and expect to drive further progress through precision targeting engagement with patients and healthcare professionals. With that, I'll turn it over to Dave, who will walk through our additional strategic priorities and progress with expanding margins and optimizing capital allocation. Dave?

Thank you, Albert, and good morning. To begin this morning, let me emphasize that our solid financial results are a clear reflection of our disciplined execution and strategic priorities. We remain focused on improving patient outcomes and meeting our financial goals while managing the complexities of the external environment. Our cost improvement initiatives have contributed to greater organizational efficiencies, as demonstrated by our robust operating margins achieved this quarter. Going forward, we expect to improve our cash flow, reduce our debt leverage over time, and increase flexibility across our three capital allocation pillars.

Our focus remains on creating long term shareholder value. We will continue to invest in our business for the long term while prudently returning capital to our shareholders. Now let me start with our second quarter results, then I will touch on our capital allocation priorities, and then move to our cost improvement initiatives. I'll finish with a few comments on the macro environment as well as our 2025 guidance. For the second quarter twenty twenty five, we recorded revenues of $14,700,000,000, an increase of 10% operationally.

This increase was largely due to overall growth both in The US and internationally. Partially offsetting the increase was an $825,000,000 year over year unfavorable impact of higher manufacturer discounts resulting from the IRA Medicare Part D redesign, which took effect in the '25 and overall is largely in line with our expectations. On the bottom line, second quarter twenty twenty five reported diluted earnings per share was $0.51 and adjusted diluted earnings per share was $0.78 ahead of our expectations, primarily due to strong top line performance and our cost management execution. Our results demonstrate the effectiveness of our refined commercial strategy. We remain committed to prioritizing key products and markets, optimizing the global allocation of our commercial field resources, and concentrating our marketing efforts on high priority areas.

We saw strong contributions across our product portfolio, primarily driven by the Vyndaqel family, Chimeradi, Paxlovid, Patchcev, and Eliquis, partially offset by declines in Ibrance. Also, I'd like to highlight a significant trend within our portfolio that we expect to fuel the company's top line for the next several years. Year to date, Pfizer's recently launched and acquired products delivered $4,700,000,000 in revenue while growing approximately 15% operationally versus last year. We we plan to continue to invest behind these two product groups to drive their future performance and help enable the company to largely offset our LOEs over the next several years. Adjusted gross margin for the second quarter was approximately 76%, primarily reflecting the product mix within the quarter.

Looking at our adjusted gross margin performance over the last two years, we have largely achieved percentages in the mid to upper 70s when adjusting for commodity, which, as you know, has a fiftyfifty gross profit split with our partner, BioNTech. In addition, we believe the expected $1,500,000,000 savings from our phase one of our manufacturing optimization program by the '27 will help bolster gross margins as we transition through the LOE period. Maintaining a strong emphasis on cost management throughout our manufacturing network will continue to be a key priority. Total adjusted operating expenses were $5,800,000,000 for the second quarter, an 8% decline operationally versus last year. Now looking at the components, adjusted SI and A expenses decreased 8% operationally, primarily reflecting a decrease in marketing and promotional spend for various products as a result of our focused investments and ongoing productivity improvements.

Adjusted R and D expenses decreased 9% operationally, driven primarily by a decline in spending due to pipeline optimization expected to be reinvested later this year and into next year. We continue to be disciplined with our operational expense management. Q two reported diluted earnings per share was 51¢, and our adjusted diluted earnings per share was $0.78 which benefited from our efficient operating structure in addition to our effective tax rate, primarily driven by a favorable change in jurisdictional mix of earnings. Now let me quickly touch on our capital allocation strategy, which is designed to enhance long term shareholder value. Our strategy consists of maintaining and growing our dividend over time, reinvesting in our business at an appropriate level of financial return, and making value enhancing share repurchases.

In the 2025, we returned $4,900,000,000 to shareholders via our quarterly dividend, and we invested $4,700,000,000 in internal R and D. As previously mentioned, maintaining our gross leverage at an appropriate level is a key priority towards improving our capacity for business development. Our gross leverage at the end of the second quarter was approximately 2.7 times, which we are now setting as our new target, down from 3.25 times. During Q2, we announced the licensing agreement with 3SBio, which closed in July 2025. Our business development capacity is now approximately $13,000,000,000 following the 3S Bio deal.

Lastly, first half twenty twenty five operating cash flows at $1,800,000,000 was tempered primarily by large expected payments in the second quarter, including an approximately $2,100,000,000 TCJA repatriation tax payment and our payment to BioNTech for our gross profit split. We expect to see improved cash flows in the back half of this year. Overall, we are focused on maintaining leverage at or below our new target to support a balanced allocation of capital between reinvestment and direct return to our shareholders. We continue to be disciplined with our operational expense management, progressing multiple improvement programs as we remain focused on driving operating margin expansion over the coming years. We expect to begin realizing initial savings from the phase one manufacturing optimization program in the latter part of this year.

As part of our goal to return to pre pandemic operating margin, we remain on track to deliver on our goal of at least $4,500,000,000 in cumulative net cost savings from our ongoing cost realignment program by the end of this year. As a reminder, in total, we expect approximately $7,700,000,000 in savings by the '27 to drive operating efficiencies, strengthening our business with the potential of contributing significantly to our bottom line over the period. Of these savings, approximately $500,000,000 identified in R and D will be reinvested in the pipeline, which we expect by the '26. Now with that, let me turn to our full year '25 guidance. The pharmaceutical industry continues to navigate a complex global landscape influenced by rapidly changing proposed trade and tariff policies.

Strategies to help mitigate the potential impact on our business in the short term have been implemented. And we continue to evaluate opportunities and develop plans which will help mitigate the potential long term impact of tariffs on our business and our operations. That said, the company's guidance absorbs the impact of the currently imposed tariffs from China, Canada and Mexico, as well as potential price changes this year based on the letter received on July 31 from President Trump. Our non COVID revenues continued to perform very well operationally and ahead of our plan. In addition, our guidance assumes favorability to revenues due to foreign exchange rates.

As a reminder, our plan assumes that a large majority of our COVID revenues are forecasted in both Q3 and Q4. Given this fact, we believe it is prudent to maintain our full year revenue outlook as we enter the second half of the year. We continue to expect full year '25 revenues to be in the range of 61,000,000,000 to $64,000,000,000 In addition, we now expect adjusted SI and A to be in the range of 13,100,000,000.0 to $14,100,000,000 adjusted R and D to be in the range of $10,400,000,000 to $11,400,000,000 and our adjusted effective tax rate of approximately 13%. Now given our strong performance to date as well as our outlook, including a favorable impact on foreign exchange, our more efficient cost structure, as well as improvements in our adjusted effective tax rate, we are raising our full year '25 adjusted diluted earnings per share guidance by $0.10 This includes absorbing a $0.20 charge for acquired in process R and D associated with the upfront payment for the 3SBio transaction. So just to clarify, without the 3SBio deal, we would have raised our adjusted diluted earnings per share guidance by 30¢.

Of this amount, approximately two thirds is due to our strong operational performance and our outlook. I will also point out that while we are raising our adjusted diluted earnings per share guidance, we are partially derisking the expected COVID performance in the second half of this year. As a result, our revised full year '25 adjusted diluted earnings per share range is now $2.9 to $3.1 a share. In closing, we will continue to focus on maximizing our product portfolio's value and driving innovation to strengthen our pipeline. With a stronger balance sheet, we plan to deploy capital more effectively.

We will focus on increasing our R and D productivity by deploying AI and digital capabilities, reinvest appropriately to accelerate high value R and D programs, and pursue new growth opportunities through business development. Additionally, our cost improvement initiatives are beginning to expand operating margins through productivity gains and streamline processes. And so with that, I thank you for your attention. I will now open it up for Q and A.

We'll take our first question from Trong Nguyen with UBS. Your line is open. Please go ahead.

Hi, guys. Just there in your prepared remarks, you noted your guidance absorbs the potential price changes this year based on the letter you received from president Trump on July 31. That talks about impacting Medicaid with MFN. Does that imply you think something's gonna happen this year? And if so, what's your broad assumption so we can kind of quantify that hit on your revenues and EPS?

And then can you perhaps just give us your state of the union on the recent developments with MFN and tariffs? And then just on the CDC recommendations for the vaccines, there was a reduced recommendation in May that a payer pullback for broader adult COVID vaccinations. So just how are you sizing the twenty five, twenty six US fall season versus last year? And can you comment on any progress with state mandates or payer negotiations to stabilize that coverage? Thank you.

Thank you, Trump. Let me start. I know many people would like to get clarity on the MFM situations, the tariff situations, and I'm not in a position to provide much clarity, not because we are not discussing. Right now, we are in very active discussions. I discussed at the highest levels of this government.

I discussed myself with the president after he sent the letter me and all the others. We discussed a lot with the Secretary Kennedy, we discussed a lot with Doctor. Post, who is responsible for implementing a lot of these things. And I would say only that these discussions are extremely productive. I think we understand where the president comes from, and we are engaging in a productive way to find a solution.

But because we are in active discussions, it's inappropriate for me to start providing more details, because I don't want to say things while you're discussing with them. So I understand that many others may have questions about that, and I'm not sure I can give more information than what I just told you, that we have a letter that sets a base of what the president wants. The letter asks a lot from us, but we are engaged in productive discussions with them. And in general, I'm happy the way that they listen to us and the way that we are trying collectively to find solutions that on one hand would make medicines affordable in The US. On the other hand, will make our industry even more competitive compared to China, which is progressing very rapidly to us.

On the tariffs, also, I don't have much news to add. We are waiting for the two thirty two report. And once we have that, we will see how this discussion again, on the tariffs, I had good discussions with Secretary Latnick, with the US Trade Representative, with Secretary Besson, and of course, with the President, but we have a special relation through the times of COVID. So that's all I can say. I don't know if, Dave, you want to add something on what is included and how we think about it.

Yeah, I would just say that the underlying strength of our business is allowing us to raise our guidance in the back half of the year. And with, to Albert's point, with the work that's going on across the industry, we're able to come up with a range of scenarios, and we believe that those range of scenarios associated with potential timing of all of this would allow us to absorb any impact this year based, again, on the underlying strength of our business today and performance today.

And maybe, Amil, you can comment on the CDC?

Yeah. So, Chung, I think your question was largely around commodities. So I'll mention the quarter and then our expectations for the season. Commernity had a very strong quarter in Q2, and I think that's driven partially by gross to net favorability. We've just become much more efficient in managing inventory in the marketplace.

And we also saw a continued increase in our market share in the quarter. So that's the quarter. Now, as it relates to the season, we don't have a crystal ball, but what we are planning for is we anticipate an indication for the 65 population, as well as those 64 with underlying medical conditions. And that largely reflects the dynamic of how people vaccinate in The US today. We also don't anticipate any major changes in coverage by payers for this season.

So this could have a modest effect on our vaccination rates, but we anticipate having a very strong season. In addition, I think we're very ready to execute against that. We have our supply and distribution capabilities, which are genuinely unmatched. We have a very robust plan for both physician as well as patient activation, and we monitor sentiment very closely. We have not seen dramatic changes in intent to vaccinate.

And we also have very strong contract positions, both in retail and non retail, so we look forward to the community season for the fall.

Thank you, Adrian. Next question, please.

We'll go next to Chris Schott with JPMorgan.

Great. Thanks so much for the questions, and congrats on the quarter. Just two for me. First, on BD and capital allocation. Just what's driving the slightly lower target leverage for the company going forward?

I think you lowered it by about a half turn or so. Was looking for any color there. And just on the BD approach, is the approach here still to target a couple smaller deals with that 10,000,000,000 to $15,000,000,000 of capacity you've previously talked about? Or is the thought maybe looking at one larger one? Last really quick one, just to slip in, just the recent PD-one VEGF deal.

I know you're going to think about doing combos with some of your ADCs. Will we need to see the Phase III data from those ADCs before you move forward, or should we start to think about Pfizer starting development of those programs prior to those readouts? Thank you.

Chris, as usual, excellent question, but David can take the first two, and then I think Chris can talk about BDM ramp ups.

So, Chris, yes, we have actually improved our target from a leverage perspective down to 2.7 from 3.25 times. That is largely because we have improved our cash generation capability over the last a little faster than we anticipated post closing of the CJEN acquisition. So we're now sitting at 2.7 times. We will continue to delever over time. If we were to do a BD transaction, we might tick back up over that 2.7 times, but our objective is to still get down and continue to delever the balance sheet in the long term.

Secondly, yes, most likely we would tend to do a, I will say, a smaller deal, given the fact that our capacity is in the $13,000,000,000 zip code at this moment, and so I would expect us more from a smaller perspective from a transaction.

It is 13 only because we have essentially allocated some of 3S Bio transaction funds against our BDA target.

Thank you, Dave. And Chris, how do you think about developing the PDN1 reserve that I know we closed and we are very rapidly executing on a plan even before we could close? Thank you very much. As you know,

we do have ongoing programs with the ADCs SV, PD L1V and PADCEV all in phase three. We're not going to wait for readout from these studies, and we'll start earlier with phase onetwo combinations this year, in fact, with those ADCs in combination with three Aspire seven zero seven. How we look at seven zero seven is really to be a potential backbone to replace single agent PD-onePD L1. It's got a unique structure, and the preclinical data suggests potential best in class regarding high affinity for PD-one inhibition and also potentially increased anti angiogenic activity. You've seen the overall response rate in the first line setting of sixty five percent.

We're confident in this molecule across the cancer areas or tumor areas where we have significant capability, including thoracic, GU and GI, and we'll later this year announce the phase three program for 07/2007.

Thank you, Chris. My team got me very excited about this molecule and they have presented to me a very aggressive development plan that they plan to execute starting this year. We will share more news the plan later in the year when we kick off the execution. Next question please.

We'll go next to Alex Hammond with Wolfe Research.

Thanks for taking our question. I guess one on MSN. Just given your recently announced DTC patient option for purchasing Eliquis, how should we consider the applicability of this program to the remainder of your portfolio?

Thank you, Alexandra. I think it very much will help. I can tell you that the direct to consumer was one of the four things that the letter of president Trump requested from me and everybody else. We think it is a fantastic way to go ahead, so we will work collaboratively to do it. Clearly, Pfizer has good experience from the Pfizer for all, where we have a direct to consumer website that has very, very high traffic.

And also now we launched together with our partner BMS, the Liquus three sixty, which exactly does what basically that president Trump is asking us to to do. Actually, I'm I'm sure you've noticed that he tweeted himself. He retweeted actually my tweet about the Eliquis. And also, we had serious discussions in the industry. So I have connected, of course, we had the board of all the CEOs that discussed it, and also myself, I'm connecting very often individually with all the major companies.

And they are all ready to roll up their sleeves and execute something like that. So it remains to be seen. I don't want to speak more, as I said, because we are in active discussions. Next question.

We'll go next to Mohit Bansal with Wells Fargo. Your line is open.

Great. Thank you very much for taking my question. Dave, I have a question regarding guidance. It does seem like you had quite a good quarter this quarter, and there is FX still in as well as operational reasons here. So wondering what is driving the intact guidance or even, like, not even, like, upping it to the high end of the range?

It's just would love to know your thought process in in setting this guidance at this point. Thank you.

Yeah. Thank you. I think as we looked at guidance, as I said, we are essentially raising bottom end by 30¢ and then absorbing the 20¢ charge for three s BIO transaction. At the same time, we are looking at our future q three and q four, and we're essentially derisking some of that. So this underlying strength of our business would have us increasing guidance even further from a profit perspective.

But we, at this point in time, given the volatility that is potentially ahead of us in COVID, we think it is prudent to wait, hold, see how Q3 and Q4 come about, and then update as appropriate from that perspective.

We'll go next to Courtney Breen with Bernstein. Hi all, thank you so

much for taking the question. A couple from me. The first is on the efficiencies that we're seeing kind of in your operating model and particularly around s g and a. It'd be great if you're able to kind of give us some extra context around kind of where you are kind of reallocating and investing versus where you're able to pull back and and kind of some more context and detail and color around that both within The US and Ex US? And then secondarily, you've given us some more, detail in terms of m and a and and the $13,000,000,000 range, but can you give us a little bit more insight on the priorities?

I know you've talked about kind of the obesity opportunity or cardiometabolic opportunity and immunology being areas of interest. Can you talk about kind of whether they still rank near the top or how you're seeing kind of opportunities out there that you might be interested in? Thanks so much.

No, thank you, Karknis. Let's start with Alexander to speak about the efficiency in international, and then Amir can chime in on The US.

Thanks, Wolfgang, for the questions. You remember about eighteen months ago when we started this journey at the International division, we said we will pick our growth driver, both from an inline standpoint and the new product. And that combination will be different country by country based on the environment, the potential and the population to treat. That's what we did. So we've identified in our top 16 markets those combinations and then we invested to win, in the sense that we looked at the shareholders that we need, and then we reduce our investment everywhere else so that we can win in this area.

Pfizer (PFE) Q2 2025 Earnings Call Transcript

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