PFE · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

PFIZER INC · 2026-11-03 · Importance 18 · Surprise 14

Cost of sales fell $144 million in the third quarter to $4.028 billion, and its share of revenue declined to 24.3% from 25.0%. The quarterly decrease reflected a $340 million favorable sales-mix change and $170 million favorable foreign exchange, partly offset by the non-recurrence of a favorable prior-year accrued-royalty estimate revision. Nine-month cost of sales rose $872 million to $11.668 billion, increasing to 25.3% of revenue from 24.0%, primarily because favorable royalty-estimate revisions did not recur and foreign exchange had a $180 million unfavorable impact. A $235 million favorable sales-mix change partly offset the nine-month increase.

Key facts

• Pfizer's first-nine-months 2026 cost of sales increased $872 million, including a $180 million unfavorable foreign-exchange impact, partially offset by a $235 million favorable sales-mix change. source
• Pfizer's third-quarter 2026 cost of sales decreased $144 million, including a $340 million favorable sales-mix change and a $170 million favorable foreign-exchange impact. source