PFE · 8-K · 20260804PR000094
Gross Margin Drivers
PFIZER INC · 2026-08-04 · Importance 30 · Surprise 14 · No source text
Reported second-quarter cost of sales increased 8% to $4.092 billion, while cost of sales as a percentage of revenue rose 1.4 percentage points to 27.2% from 25.8%. Adjusted cost of sales increased 4% to $3.656 billion, and adjusted cost of sales as a percentage of revenue increased to 24.3% from 23.9%. Pfizer attributed the reported margin pressure primarily to an unfavorable sales mix and higher amortization of fair-value step-ups for acquired inventory. The higher acquired-inventory amortization was primarily driven by the Oxbryta impairment.
Key facts
- Next phase of Manufacturing Optimization Program expected to deliver additional anticipated savings of approximately $1.5 billion through 2029 with one-time costs to achieve savings expected to be approximately $4.0 billion, ~60% non-cash and ~40% cash source
- Cost of Sales for Q2 2026: $4,092 million (27.2% of revenues) source
- Adjusted Cost of Sales for Q2 2026: $3,656 million (24.3% of revenues) source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | probable | -13.3% | Next phase of Manufacturing Optimization Program expected to deliver additional anticipated savings of approximately $1.5 billion through… |
| operating_income | positive | probable | +5.0% | Next phase of Manufacturing Optimization Program expected to deliver additional anticipated savings of approximately $1.5 billion through… |
| cash | negative | probable | — | Next phase of Manufacturing Optimization Program expected to deliver additional anticipated savings of approximately $1.5 billion through… |
| assets | negative | probable | — | Next phase of Manufacturing Optimization Program expected to deliver additional anticipated savings of approximately $1.5 billion through… |