Pfizer Inc. (NYSE:PFE)

Gross Profit Margin

The gross profit margin demonstrates a generally declining trend from 79.26% in December 2020 to a low point around 58.1% - 58.18% during the first three quarters of 2024. However, there is a notable recovery beginning in late 2024, with the margin increasing to 72.12% by June 2025, indicating an improvement in the cost efficiency or pricing power in the most recent periods.

Operating Profit Margin

Operating profit margin exhibits significant volatility over the analyzed period. After fluctuating around the low twenties between late 2020 and early 2023, there is a sharp decline starting in late 2023, with margins turning negative in 2024, reaching a low of -4.19% in December 2024. Subsequently, operating margins recover into positive territory by early 2025, rising to 23.23% by June 2025. This pattern suggests operational challenges during 2024, followed by a strong rebound in profitability.

Net Profit Margin

Net profit margin follows a similar pattern to the operating margin, rising steadily through 2021 and early 2023 to a peak above 31%, then declining sharply through 2023 and into 2024, turning negative at -4.62% by December 2024. The margin improves again in 2025, reaching 16.84% by mid-year. This indicates that the company’s bottom-line profitability was adversely affected during 2024, but recovery efforts have shown effectiveness in subsequent quarters.

Return on Equity (ROE)

ROE trends mirror the fluctuations seen in profitability metrics. It rose from 15.21% in early 2021 to a peak of 33.61% in late 2022, then experienced a steep decline through 2023 and 2024, going negative at -2.96% in September 2024. The ratio recovers to 12.12% by mid-2025, reflecting improvement in generating returns for shareholders following a period of diminished profitability.

Return on Assets (ROA)

ROA also shows growth until late 2022, peaking at 15.32%, followed by a decrease through 2023 and 2024, including a brief negative period in mid-2024 with a low around -1.2%. By mid-2025, ROA recovers to 5.22%, indicating improved efficiency in asset utilization correlating with the general recovery across profitability and margin measures.

Gross Profit Trends

Gross profit displayed a general upward trend from early 2020 until late 2022, peaking at 19,094 million US dollars in the third quarter of 2022. Following this peak, a notable decline occurred in 2023, with figures dropping significantly to 4,223 million US dollars by the first quarter of 2023. After this low point, gross profit experienced some recovery and fluctuation, reaching values between approximately 10,000 and 12,000 million dollars by mid-2024 and onward.

Revenue Trends

Revenues saw a consistent increase throughout 2020 and into 2021, rising from approximately 10,000 million US dollars in the first quarter of 2020 to a peak of 27,742 million in the third quarter of 2022. This was followed by volatility and an overall reduction in revenues through 2023, with a low of about 13,000 million US dollars in several quarters. Revenues thereafter stabilized, fluctuating between approximately 13,700 and 17,700 million US dollars through mid-2025.

Gross Profit Margin Analysis

Gross profit margin data, available from late 2020 onward, generally shows a downward trend from approximately 79.26% in the fourth quarter of 2020, declining to around 58% in 2023 and early 2024. Notably, gross margin dipped to its lowest point near 58.09% in mid-2024. Later, the margin improved substantially, recovering to above 70% by 2025, indicating improved cost control or pricing power in the latter periods observed.

Insights and Patterns

The period from 2020 through late 2022 was characterized by growth in both revenues and gross profits, with margins decreasing but remaining relatively high initially. The sharp decline in gross profit and revenue starting in late 2022 and through 2023 suggests a significant change in operational performance or market conditions. The subsequent recovery in gross profit margins despite fluctuating revenues may reflect adjustments in cost structures or product mix leading to improved profitability ratios in 2024 and beyond. The gross profit margin's recovery above 70% in 2025 is particularly noteworthy, as it suggests a return to stronger profitability levels.

Operating Income (Loss)

Operating income exhibited significant volatility over the observed periods. Initial values ranged from 3027 million USD in March 2020 to a low of 613 million USD in December 2020, reflecting a downward trend in mid-2020. This was followed by a substantial increase from April 2021 through July 2022, peaking at 12,219 million USD. Afterward, operating income declined sharply in late 2022 and into 2023, including negative values in October and December 2023 (-3170 million and -4289 million respectively), indicating operational challenges or exceptional expenses during this time. The figures recovered somewhat afterward, ending with positive values around 3738 million USD in June 2025.

Revenues

Revenues showed a general upward trend from March 2020 (10,083 million USD) to July 2022 (27,742 million USD), with some fluctuations within the periods. The peak was observed in mid-2022, followed by a sharp decline in the latter part of 2022 and throughout 2023, reaching a low of 13,007 million USD in July 2023. Revenue stabilized somewhat in the most recent quarters, fluctuating between approximately 13,715 and 17,763 million USD, yet remaining significantly below the mid-2022 peak.

Operating Profit Margin

The operating profit margin data, available starting from December 2020, reflects a generally positive and improving trend through July 2022, rising from 19.47% to a high of 34.83%. This indicates increasing operational efficiency or profitability relative to revenues during this time. Subsequently, the margin declined substantially in late 2023, reaching a negative value of -4.19% in September 2024, which aligns with the operational losses observed. Beginning in the final quarters, the margin turned positive again, reaching 23.23% by June 2025, implying a recovery in profitability.

Overall Observations

The company experienced strong growth in both revenues and operating income through mid-2022, supported by rising operating margins. This suggests efficient cost management and favorable market conditions during that phase. However, a marked downturn occurred starting in late 2022, with declines in revenue accompanied by operational losses and reduced margins, pointing to possible market, operational, or strategic challenges. The data indicates a recovery trend in 2024 and 2025, with improving revenues and operating profitability, though not fully reaching earlier peak levels.

The analysis of the quarterly financial data reveals several notable trends and patterns across the provided periods.

Net Income

The net income attributable to common shareholders exhibits considerable volatility throughout the timeframe. Initial quarters in 2020 show moderate values around 3,000 to 5,500 million US dollars, with a peak of 8,146 million in Q3 2021. Subsequent quarters reveal sharp fluctuations including a pronounced decline into negative territory in Q4 2023 and Q1 2024, with values of -2,382 million and -3,369 million respectively, indicating a period of losses. Recovery is observed in later quarters in 2024, returning to positive territory and stabilizing between approximately 2,900 to 4,400 million by mid-2025.

Revenues

Revenue trends generally indicate growth over the course of the observed periods, albeit with fluctuations. Starting from roughly 10,000 million US dollars in early 2020, there is a significant increase through 2021, achieving peaks near 24,000 to 27,000 million US dollars. However, early 2023 shows a marked decline in revenue to levels around 13,000 to 14,000 million, followed by moderate recovery but remaining below the peak levels in the late 2024 and mid-2025 periods. This pattern suggests variability in sales or product demand impacting revenue streams.

Net Profit Margin

The net profit margin percentages, available from the end of 2020 onward, indicate a generally healthy profitability level initially, with margins consistently above 22% and peaking close to 31% from 2021 through early 2023. However, there is a significant contraction in profitability starting in late 2023, with margins declining sharply, even dipping into negative values in Q4 2023 and Q1 2024, reflecting losses during those periods. Margins recover somewhat in subsequent quarters, moving back into positive territory, reaching approximately 12-17% towards mid-2025.

Overall, the data suggests a cycle of strong financial performance until early 2023, followed by a period of financial stress manifesting in reduced revenues, net losses, and compressed profit margins during late 2023 and early 2024. The latter half of the dataset shows signs of financial stabilization and gradual recovery, although the revenue and net income figures have not uniformly returned to the previous peak levels. These patterns may indicate external or company-specific challenges affecting financial outcomes during the disruption period, followed by corrective actions or market adjustments contributing to recovery.

The analysis of the financial data reveals several notable trends in the company's profitability, equity, and return on equity (ROE) over the observed periods.

Net Income Trends

The net income attributable to common shareholders exhibited significant fluctuations. Initially, net income started moderately in early 2020, with values around 3,355 to 3,489 million USD, but then declined sharply in the third and fourth quarters of 2020, reaching as low as 1,303 million USD. A strong recovery ensued in 2021, peaking in the third quarter at 8,146 million USD, although this was followed by a decrease towards the end of that year.

In 2022, net income remained high in the first three quarters but faced a decline in the last quarter, continuing a downward trend into early 2023. Notably, the net income turned negative in the third and fourth quarters of 2023 (-2,382 and -3,369 million USD respectively), indicating a substantial loss during that period. Subsequently, the company returned to profitability from the first quarter of 2024 onward, with positive but relatively moderate gains compared to prior peaks.

Total Shareholders’ Equity

The shareholders' equity demonstrated a generally upward trend over the entire period. Beginning from approximately 65,026 million USD in the first quarter of 2020, equity progressively increased, reaching a peak of about 100,970 million USD in the first quarter of 2023. Following this peak, a mild contraction occurred, with equity levels fluctuating in the range of roughly 88,203 to 92,700 million USD through mid-2025. This suggests sustained capital growth complemented by some recent contraction or capital adjustments.

Return on Equity (ROE)

The return on equity showed considerable volatility and strong cyclical behavior. Data are not available for the initial quarters of 2020, but starting from the fourth quarter of 2020, ROE was situated at 15.21%, and rose steadily to reach a high of 33.61% by the third quarter of 2022. Subsequently, ROE declined markedly, falling to negative values in the last quarter of 2023 (-0.33% and -2.96%), mirroring the net income losses during the same period.

After this trough, ROE exhibited recovery, climbing back above zero and reaching 12.12% by mid-2025. This pattern indicates that profitability relative to shareholders’ equity weakened in late 2023 but showed signs of improvement afterward.

In summary, the financial data illustrates a period of strong profitability and growth in equity culminating around early 2023, followed by a phase of profit contraction and loss in late 2023. Despite this setback, the company’s equity base remained relatively stable, and profitability metrics began to recover in 2024 and 2025. These dynamics reflect fluctuations in earnings performance while maintaining a solid capital foundation.

The data reveals notable fluctuations and trends in net income attributable to common shareholders, total assets, and return on assets (ROA) over the reported periods.

Net Income (Loss) Attributable to Common Shareholders

The net income figures demonstrate significant volatility. Starting with moderate positive values in early 2020, there is an observable sharp increase in 2021, peaking particularly in the third quarter of that year. Following this peak, the values fluctuate, with a pronounced decline into negative territory in late 2023, indicating a substantial loss. Subsequently, recovery is observed in 2024 and into mid-2025, though the net income does not consistently return to the earlier peak levels within the timeframe.

Total Assets

Total assets show a general increasing trend from early 2020 through 2024, rising from approximately 166 billion US dollars to above 220 billion US dollars at the peak. Thereafter, a gradual decline is noted through 2025, with assets decreasing to just above 206 billion US dollars by mid-2025. The growth in assets precedes and partially overlaps the period of peak net income, suggesting asset expansion possibly supported or financed the profitability surge during 2021 and early 2022.

Return on Assets (ROA)

ROA was not reported in the early periods but shows a steady upward trajectory beginning in late 2020. The ratio improves significantly, reaching a maximum around the end of 2022 and early 2023, peaking above 15%. This indicates increasing efficiency in generating profits from the asset base during this period. However, ROA declines sharply thereafter, dipping below zero in late 2023, which coincides with the reported net income losses. Recovery in ROA begins in 2024, rising gradually but remaining below the earlier peaks by mid-2025.

Overall, the financial data indicates a period of growth and improved profitability from late 2020 through early 2023, followed by a sharp downturn with losses and reduced asset efficiency in late 2023. The subsequent partial recovery by mid-2025 suggests some stabilization but not a full return to earlier performance highs within the observed timeframe.