Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Pfizer Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Product revenues	51,663)	53,816)	50,914)	91,793)	73,636)
Alliance revenues	9,266)	8,388)	7,582)	8,537)	7,652)
Royalty revenues	1,650)	1,423)	1,057)	845)	857)
Revenues	62,579)	63,627)	59,553)	101,175)	82,145)
Cost of sales	(16,067)	(17,851)	(24,954)	(34,344)	(30,821)
Gross profit	46,512)	45,776)	34,599)	66,831)	51,324)
Selling, informational and administrative expenses	(13,794)	(14,730)	(14,771)	(13,677)	(12,703)
Research and development expenses	(10,437)	(10,822)	(10,679)	(11,428)	(10,360)
Acquired in-process research and development expenses	(1,613)	(108)	(194)	(953)	(3,469)
Amortization of intangible assets	(4,874)	(5,286)	(4,733)	(3,609)	(3,700)
Restructuring charges and certain acquisition-related costs	(1,550)	(2,419)	(2,943)	(1,375)	(802)
Operating income	14,244)	12,411)	1,279)	35,789)	20,290)
Interest income	603)	545)	1,624)	251)	36)
Interest expense	(2,671)	(3,091)	(2,209)	(1,238)	(1,291)
Net interest expense	(2,068)	(2,546)	(585)	(987)	(1,255)
Net gains on asset disposals	—)	—)	—)	—)	99)
Net gains (losses) recognized during the period on equity securities	(67)	1,008)	1,590)	(1,273)	1,344)
Income from collaborations, out-licensing arrangements and sales of compound/product rights	192)	42)	154)	188)	396)
Net periodic benefit credits (costs) other than service costs	678)	(154)	610)	849)	2,547)
Certain legal matters, net	(1,057)	(567)	(474)	(230)	(182)
Certain asset impairments	(4,940)	(3,295)	(3,024)	(421)	(86)
Haleon equity method income	—)	102)	505)	436)	471)
Other, net	538)	1,022)	1,003)	378)	687)
Other income (deductions), net	(6,724)	(4,388)	(221)	(1,060)	4,021)
Income from continuing operations before (provision) benefit for taxes on income	7,520)	8,023)	1,058)	34,729)	24,311)
(Provision) benefit for taxes on income	267)	28)	1,114)	(3,328)	(1,852)
Income from continuing operations	7,787)	8,051)	2,172)	31,401)	22,459)
Discontinued operations, net of tax	25)	11)	(14)	6)	(434)
Net income before allocation to noncontrolling interests	7,812)	8,062)	2,158)	31,407)	22,025)
Net income attributable to noncontrolling interests	(41)	(31)	(39)	(35)	(46)
Net income attributable to Pfizer Inc. common shareholders	7,771)	8,031)	2,119)	31,372)	21,979)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The financial performance presented demonstrates significant fluctuations over the five-year period. Revenues experienced substantial growth initially, followed by a marked decline, and then a period of relative stabilization. Profitability metrics exhibit a similar pattern of initial expansion, a sharp contraction, and subsequent modest recovery.

Revenue Analysis: Total revenues increased from US$82.145 billion in 2021 to US$101.175 billion in 2022, representing a significant gain. However, revenues then decreased substantially to US$59.553 billion in 2023. A slight recovery occurred in 2024 and 2025, reaching US$63.627 billion and US$62.579 billion respectively, but remained below the 2022 peak. Product revenues followed a similar trajectory, being the primary driver of these fluctuations. Alliance and Royalty revenues demonstrated more consistent, albeit smaller, growth throughout the period.
Profitability Analysis: Gross profit mirrored the revenue trend, peaking at US$66.831 billion in 2022 before declining to US$34.599 billion in 2023. It showed some improvement in 2024 and 2025, reaching US$45.776 billion and US$46.512 billion. Operating income experienced the most dramatic shift, falling from US$35.789 billion in 2022 to US$1.279 billion in 2023, then recovering to US$12.411 billion and US$14.244 billion in 2024 and 2025. Net income attributable to Pfizer Inc. common shareholders followed a similar pattern, decreasing from US$31.372 billion in 2022 to US$2.119 billion in 2023, and then increasing to US$8.031 billion and US$7.771 billion in 2024 and 2025.
Expense Analysis: Cost of sales decreased significantly in 2023 and 2024, and continued to decrease in 2025, potentially contributing to the stabilization of gross profit. Selling, informational and administrative expenses remained relatively stable throughout the period. Research and development expenses also exhibited relative stability, with minor fluctuations. However, Acquired in-process research and development expenses, Restructuring charges and certain acquisition-related costs, and Certain asset impairments experienced substantial increases in 2023 and 2024, contributing to the decline in operating income. Amortization of intangible assets also increased over the period.
Other Income and Expenses: Net interest expense increased from US$-1.255 billion in 2021 to US$-2.671 billion in 2025. Other income (deductions), net, experienced a significant negative swing, moving from a positive US$4.021 billion in 2021 to a negative US$-6.724 billion in 2025. Certain legal matters, net, also increased as a negative expense over the period. These factors contributed to the volatility in income from continuing operations before taxes.
Tax Impact: The provision for taxes on income fluctuated significantly, moving from a benefit in 2023 to a cost in other years. This variability impacted the final net income figures.

In summary, the period began with strong revenue and profit growth, followed by a substantial downturn in 2023, likely influenced by increased expenses and other deductions. The subsequent years show a partial recovery, but performance remains below the 2022 levels. The significant fluctuations in various expense categories and other income/expenses warrant further investigation to understand the underlying drivers of these changes.

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Pfizer Inc. (NYSE:PFE)

Income Statement