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, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Product revenues	53,816)	50,914)	91,793)	73,636)	36,490)
Alliance revenues	8,388)	7,582)	8,537)	7,652)	5,418)
Royalty revenues	1,423)	1,057)	845)	857)	770)
Revenues	63,627)	59,553)	101,175)	82,145)	42,678)
Cost of sales	(17,851)	(24,954)	(34,344)	(30,821)	(8,692)
Gross profit	45,776)	34,599)	66,831)	51,324)	33,986)
Selling, informational and administrative expenses	(14,730)	(14,771)	(13,677)	(12,703)	(11,615)
Research and development expenses	(10,822)	(10,679)	(11,428)	(10,360)	(9,405)
Acquired in-process research and development expenses	(108)	(194)	(953)	(3,469)	—)
Amortization of intangible assets	(5,286)	(4,733)	(3,609)	(3,700)	(3,436)
Restructuring charges and certain acquisition-related costs	(2,419)	(2,943)	(1,375)	(802)	(600)
Operating income	12,411)	1,279)	35,789)	20,290)	8,930)
Gain on completion of Consumer Healthcare JV transaction	—)	—)	—)	—)	6)
Interest income	545)	1,624)	251)	36)	73)
Interest expense	(3,091)	(2,209)	(1,238)	(1,291)	(1,449)
Net interest expense	(2,546)	(585)	(987)	(1,255)	(1,376)
Net gains (losses) on asset disposals	—)	—)	—)	99)	(237)
Net gains (losses) recognized during the period on equity securities	1,008)	1,590)	(1,273)	1,344)	540)
Income from collaborations, out-licensing arrangements and sales of compound/product rights	42)	154)	188)	396)	326)
Net periodic benefit credits (costs) other than service costs	(154)	610)	849)	2,547)	236)
Certain legal matters, net	(567)	(474)	(230)	(182)	(28)
Certain asset impairments	(3,295)	(3,024)	(421)	(86)	(1,691)
Haleon equity method income	102)	505)	436)	471)	298)
Other, net	1,022)	1,003)	378)	687)	493)
Other income (deductions), net	(4,388)	(221)	(1,060)	4,021)	(1,439)
Income from continuing operations before provision for taxes on income	8,023)	1,058)	34,729)	24,311)	7,497)
(Provision) benefit for taxes on income	28)	1,114)	(3,328)	(1,852)	(476)
Income from continuing operations	8,051)	2,172)	31,401)	22,459)	7,021)
Discontinued operations, net of tax	11)	(14)	6)	(434)	2,631)
Net income before allocation to noncontrolling interests	8,062)	2,158)	31,407)	22,025)	9,652)
Net income attributable to noncontrolling interests	(31)	(39)	(35)	(46)	(36)
Net income attributable to Pfizer Inc. common shareholders	8,031)	2,119)	31,372)	21,979)	9,616)

Based on: 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), 10-K (reporting date: 2020-12-31).

Revenue Trends: Overall revenues displayed significant growth from 2020 through 2022, increasing from $42.7 billion to $101.2 billion. However, in 2023, total revenues declined sharply to $59.6 billion and showed only a modest increase to $63.6 billion in 2024. This volatile pattern was largely influenced by product revenues, which surged in 2021 and 2022 to $73.6 billion and $91.8 billion respectively, then declined steeply to $50.9 billion in 2023 before a slight recovery to $53.8 billion in 2024. Alliance and royalty revenues exhibited gentler upward trends, with royalty revenues notably increasing in 2023 and 2024.
Cost of Sales and Gross Profit: Cost of sales grew substantially from $8.7 billion in 2020 to a peak of $34.3 billion in 2022, reflecting the increase in sales volumes and/or pricing. This cost decreased in subsequent years to $24.9 billion in 2023 and further to $17.9 billion in 2024, paralleling revenue declines. Gross profit rose significantly through 2022, peaking at $66.8 billion, before decreasing to $34.6 billion in 2023 and recovering moderately to $45.8 billion in 2024. The gross profit margin trends suggest improved cost control or product mix shifts during the earlier years, but a contraction thereafter linked to lower sales.
Operating Expenses: Selling, informational and administrative expenses steadily increased each year from $11.6 billion in 2020 to $14.7 billion in 2024, indicating consistent investment in these areas despite revenue fluctuations. Research and development (R&D) expenses also grew from $9.4 billion to approximately $10.8 billion, reflecting ongoing commitment to innovation. Acquired in-process R&D expenses, recorded starting in 2021, declined sharply from $3.5 billion in 2021 to $108 million in 2024, suggesting a reduction in acquisition-related research costs. Amortization of intangible assets and restructuring charges both increased over the period, peaking in 2024, evidencing continued integration and operational restructure activities.
Operating Income: Operating income saw a marked increase from $8.9 billion in 2020 to a high of $35.8 billion in 2022, followed by a precipitous drop to $1.3 billion in 2023 and a partial recovery to $12.4 billion in 2024. This volatility closely mirrors the revenue and cost of sales patterns, indicating sensitivity to sales volumes and cost management.
Interest and Other Income (Expenses): Net interest expense improved significantly from a negative $1.4 billion in 2020 to a low of negative $585 million in 2023, before deteriorating again to negative $2.5 billion in 2024. Interest income rose notably in 2023 but declined in 2024. Net gains/losses on asset disposals and equity securities showed volatility, with notable gains in some years offset by losses in others. Other income and expense items featured large swings, including a considerable negative impact in 2024 (-$4.4 billion) compared to a significant positive in 2021 ($4 billion).
Income Before Tax and Tax Provision: Income from continuing operations before provision for taxes exhibited trends similar to operating income, peaking in 2022 at $34.7 billion, collapsing to approximately $1.1 billion in 2023, with some recovery to $8.0 billion in 2024. The tax provision showed negative values in 2023 and near zero in 2024, resulting in a low tax burden during these years and contributing to the income from continuing operations trend.
Net Income: Net income attributable to common shareholders rose sharply from $9.6 billion in 2020 to $31.4 billion in 2022, then declined drastically to $2.1 billion in 2023 before recovering to $8.0 billion in 2024. This pattern aligns closely with operational performance and income before taxes. Discontinued operations had minimal impact on net income in recent years.
Other Observations: Equity method income from Haleon decreased substantially in 2024 compared to prior years. Certain legal matters and asset impairments expenses increased over the period, especially in 2023 and 2024, negatively affecting earnings. Restructuring charges rose notably in 2023 and 2024, implying ongoing organizational adjustments.

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Pfizer Inc. (NYSE:PFE)

Income Statement