Stock Analysis on Net
Stock Analysis on Net

Pfizer Inc. (NYSE:PFE)

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Common-Size Income Statement

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Pfizer Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Product revenues
Alliance revenues
Royalty revenues
Revenues
Cost of sales
Gross profit
Selling, informational and administrative expenses
Research and development expenses
Acquired in-process research and development expenses
Amortization of intangible assets
Restructuring charges and certain acquisition-related costs
Operating income
Interest income
Interest expense
Net interest expense
Net gains on asset disposals
Net gains (losses) recognized during the period on equity securities
Income from collaborations, out-licensing arrangements and sales of compound/product rights
Net periodic benefit credits (costs) other than service costs
Certain legal matters, net
Certain asset impairments
Haleon equity method income
Other, net
Other income (deductions), net
Income from continuing operations before (provision) benefit for taxes on income
(Provision) benefit for taxes on income
Income from continuing operations
Discontinued operations, net of tax
Net income before allocation to noncontrolling interests
Net income attributable to noncontrolling interests
Net income attributable to Pfizer Inc. common shareholders

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 common-size income statement reveals significant shifts in Pfizer Inc.'s profitability and cost structure between 2021 and 2025. Revenue composition experienced changes, with product revenues declining as a percentage of total revenues, while alliance and royalty revenues increased. Operating income exhibited substantial volatility, and net income attributable to Pfizer Inc. common shareholders demonstrated a marked decrease over the period.

Revenue Composition
Product revenues, representing the largest portion of total revenues, decreased steadily from 89.64% in 2021 to 82.56% in 2025. Concurrently, alliance revenues increased from 9.32% to 14.81%, and royalty revenues rose from 1.04% to 2.64%. This suggests a strategic shift towards greater reliance on partnerships and licensing agreements.
Profitability – Gross Profit
Gross profit as a percentage of revenues initially increased from 62.48% in 2021 to 66.05% in 2022, but then declined to 58.10% in 2023. It partially recovered to 71.94% in 2024 and 74.33% in 2025. This fluctuation likely reflects changes in cost of sales, which decreased significantly in 2022 and 2024, but increased in 2023.
Operating Expenses
Selling, informational, and administrative expenses increased substantially from 15.46% of revenues in 2021 to 24.80% in 2023, before decreasing to 22.04% in 2025. Research and development expenses also increased from 12.61% to 17.93% in 2023, then stabilized around 16-17% in 2024 and 2025. Acquired in-process research and development expenses were relatively low until a notable increase to 2.58% in 2025. Amortization of intangible assets increased from 4.50% to 8.31% before decreasing slightly to 7.79%. Restructuring charges and acquisition-related costs also showed an increasing trend, peaking at 4.94% in 2023 before declining.
Operating Income
Operating income experienced significant volatility. It rose from 24.70% in 2021 to a peak of 35.37% in 2022, then plummeted to 2.15% in 2023. A recovery occurred in 2024 (19.51%) and 2025 (22.76%), but levels remained below those of 2021 and 2022. This suggests substantial pressure on operating profitability, particularly in 2023.
Non-Operating Items & Net Income
Net interest expense increased from -1.53% to -4.00% before decreasing to -3.30%. Other income (deductions), net, shifted from a positive 4.90% in 2021 to a negative -10.74% in 2025. Income from continuing operations before taxes decreased from 29.60% to 12.02%. Net income attributable to Pfizer Inc. common shareholders followed a similar pattern, declining from 26.76% in 2021 to 12.42% in 2025. The provision for taxes on income fluctuated, with a benefit recorded in 2023.
Significant Items
Certain asset impairments were a significant negative factor, increasing from -0.10% in 2021 to -7.89% in 2025. Haleon equity method income decreased from 0.57% to 0.16% before disappearing in 2025. Net gains (losses) recognized on equity securities were volatile, moving from a gain of 1.64% to a loss of -1.26% and then back to a gain of 2.67% before declining to -0.11%.

Overall, the common-size income statement indicates a period of significant change and increasing volatility for Pfizer Inc. While revenue composition shifted towards greater reliance on alliances and royalties, operating profitability faced considerable pressure, particularly in 2023, due to increased expenses and asset impairments. Net income declined substantially over the five-year period.