Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Pfizer Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income before allocation to noncontrolling interests	7,812)	8,062)	2,158)	31,407)	22,025)
Discontinued operations, net of tax	(25)	(11)	14)	(6)	434)
Net income from continuing operations before allocation to noncontrolling interests	7,787)	8,051)	2,172)	31,401)	22,459)
Depreciation and amortization	6,592)	7,013)	6,290)	5,064)	5,191)
Asset write-offs and impairments	5,270)	4,242)	3,408)	550)	276)
Deferred taxes	(2,133)	(2,102)	(3,442)	(3,764)	(4,293)
Share-based compensation expense	799)	877)	525)	872)	1,182)
Benefit plan contributions in excess of income/expense	(786)	(12)	(787)	(1,158)	(3,123)
Inventory write-offs and related charges associated with COVID-19 products	—)	—)	6,199)	1,183)	—)
Other adjustments, net	(471)	(2,259)	(3,493)	758)	(1,574)
Trade accounts receivable	(263)	(109)	347)	261)	(3,811)
Inventories	561)	(854)	(1,169)	(591)	(1,125)
Other assets	1,289)	3,380)	(663)	(4,506)	(1,057)
Trade accounts payable	(469)	(1,023)	(300)	1,191)	1,242)
Other liabilities	(3,667)	(3,115)	595)	(1,449)	18,721)
Other tax accounts, net	(2,805)	(1,345)	(982)	(545)	(1,166)
Other changes in assets and liabilities, net of acquisitions and divestitures	(5,354)	(3,066)	(2,172)	(5,639)	12,804)
Adjustments to reconcile net income from continuing operations before allocation to noncontrolling interests to net cash provided by operating activities	3,917)	4,693)	6,528)	(2,134)	10,463)
Net cash provided by operating activities	11,704)	12,744)	8,700)	29,267)	32,922)
Purchases of property, plant and equipment	(2,629)	(2,909)	(3,907)	(3,236)	(2,711)
Purchases of short-term investments	(14,356)	(10,133)	(30,974)	(36,384)	(38,457)
Proceeds from redemptions/sales of short-term investments	17,959)	4,128)	39,264)	44,821)	27,447)
Net (purchases of) proceeds from redemptions/sales of short-term investments with original maturities of three months or less	(2,675)	3,136)	5,174)	(483)	(8,088)
Purchases of long-term investments	(294)	(180)	(204)	(1,913)	(1,068)
Proceeds from redemptions/sales of long-term investments	1,095)	1,570)	1,979)	641)	649)
Proceeds from partial sales of investment in Haleon	6,311)	7,040)	—)	—)	—)
Acquisitions of businesses, net of cash acquired	(6,927)	—)	(43,430)	(22,997)	—)
Dividend received from the Consumer Healthcare JV	—)	—)	—)	3,960)	—)
Other investing activities, net	165)	—)	(180)	(192)	(306)
Net cash (used in) provided by investing activities	(1,351)	2,652)	(32,278)	(15,783)	(22,534)
Proceeds from short-term borrowings	—)	8,907)	4,525)	3,891)	—)
Payments on short-term borrowings	(2,199)	(11,226)	(3)	(3,887)	—)
Net proceeds from (payments on) short-term borrowings with original maturities of three months or less	(796)	(2,590)	3,161)	(222)	(96)
Proceeds from issuances of long-term debt	9,678)	—)	30,831)	—)	997)
Payments on long-term debt	(6,757)	(2,250)	(2,569)	(3,298)	(2,004)
Purchases of common stock	—)	—)	—)	(2,000)	—)
Cash dividends paid	(9,771)	(9,512)	(9,247)	(8,983)	(8,729)
Other financing activities, net	(459)	(469)	(632)	(335)	16)
Net cash provided by (used in) financing activities	(10,304)	(17,140)	26,066)	(14,834)	(9,816)
Net cash used in operating activities from discontinued operations	—)	—)	—)	—)	(342)
Net cash used in investing activities from discontinued operations	—)	—)	—)	—)	(12)
Net cash used in discontinued operations	—)	—)	—)	—)	(354)
Effect of exchange-rate changes on cash and cash equivalents and restricted cash and cash equivalents	42)	(66)	(40)	(165)	(59)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	91)	(1,810)	2,448)	(1,515)	159)
Cash and cash equivalents and restricted cash and cash equivalents, at beginning of period	1,106)	2,917)	469)	1,983)	1,824)
Cash and cash equivalents and restricted cash and cash equivalents, at end of period	1,197)	1,107)	2,917)	468)	1,983)

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 cash flow statement reveals significant fluctuations in the company’s financial performance over the five-year period. Operating cash flow demonstrated initial strength, followed by substantial volatility and a general decline from 2021 to 2023, before a partial recovery in 2024 and 2025. Investing activities exhibited considerable cash outflow, largely driven by investment purchases and, notably, acquisitions, particularly in 2022 and 2023. Financing activities also showed substantial variation, with significant cash inflows in 2023 due to long-term debt issuance, contrasted by substantial outflows in other years primarily from dividend payments and debt repayment.

Operating Activities: Net cash provided by operating activities began at US$32.922 billion in 2021, decreasing to US$8.700 billion in 2023 before increasing to US$12.744 billion and US$11.704 billion in 2024 and 2025, respectively. This volatility is correlated with changes in net income, with a dramatic decrease in net income from continuing operations observed in 2023. Adjustments to reconcile net income to operating cash flow were substantial in all years, indicating significant non-cash items impacting the reported cash flow. Inventory write-offs related to COVID-19 products were a notable adjustment in 2022 and 2023, contributing to lower operating cash flow.
Investing Activities: Investing activities consistently represented a net cash outflow. The largest outflow occurred in 2023, reaching US$32.278 billion, primarily due to substantial acquisitions of businesses. Purchases of short-term investments also contributed significantly to the cash outflow, particularly in 2021 and 2022. Proceeds from the redemption/sale of short-term investments partially offset these outflows, but were insufficient to generate a net inflow. The partial sale of an investment in Haleon generated significant proceeds in 2024 and 2025.
Financing Activities: Financing activities demonstrated considerable variability. 2023 saw a substantial net cash inflow of US$26.066 billion, largely driven by proceeds from the issuance of long-term debt. However, 2022 and 2024 experienced significant net cash outflows, primarily due to dividend payments, debt repayments, and, in 2022, purchases of common stock. Dividend payments consistently represented a major cash outflow throughout the period, averaging approximately US$9 billion annually.
Key Trends & Observations: A significant shift in the company’s financing strategy is apparent, with a reliance on debt financing in 2023. The large acquisitions in 2022 and 2023 heavily impacted investing cash flow. The volatility in operating cash flow suggests sensitivity to factors impacting net income, such as changes in product demand and the impact of inventory write-offs. The consistent payment of substantial dividends indicates a commitment to returning capital to shareholders, despite fluctuations in overall cash flow.

Overall, the company experienced a dynamic cash flow situation over the analyzed period, characterized by substantial fluctuations across all three activities. The significant changes in investing and financing activities suggest strategic shifts in capital allocation and funding strategies.

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Pfizer Inc. (NYSE:PFE)

Cash Flow Statement