Pfizer’s operating margin reaches 37.90% as revenue growth widens
Standalone revenue growth outpaced expenses, but lower other income limited the increase in pre-tax and net profit.
Filed 28 Jul 2026, 14:04 IST · Pfizer Ltd (PFIZER)
Key takeaways
- Pfizer Ltd’s standalone operating margin expanded 3.07 percentage points year on year to 37.90%.
- Revenue grew 8.31% year on year, outpacing the 3.20% increase in expenses and lifting operating profit 17.87%.
- Net profit rose only 6.63% year on year as other income fell 33.24% and still contributed 16.21% of pre-tax profit.
Price around the results
Revenue growth translated into faster operating profit growth
Pfizer Ltd’s standalone revenue increased 8.31% year on year and 3.80% sequentially in Q1FY27. Expenses rose only 3.20% year on year and 3.14% sequentially, allowing operating profit to grow 17.87% year on year and 4.92% from the previous quarter. Net profit growth was slower at 6.63% year on year and 2.33% sequentially.
Margin recovery continued, while other income remained material
Operating margin widened 3.07 percentage points year on year and 0.40 percentage points sequentially because revenue grew faster than expenses. This extends the recovery from 34.83% in Q1FY26 to 37.90% in Q1FY27, after the margin rose to 37.50% in Q4FY26. Other income declined 33.24% year on year, but still accounted for 16.21% of pre-tax profit; the lower interest cost, down 55.08% year on year, partly supported pre-tax profit growth of 6.61%.
Pfizer remained above the reported healthcare peer margin
Pfizer’s 37.90% operating margin was 8.07 percentage points above the 29.83% median for the nine healthcare peers that had reported the same quarter. The quarterly margin trend shows a recovery from 34.83% in Q1FY26 to 35.80% in Q2FY26, 35.38% in Q3FY26, 37.50% in Q4FY26 and 37.90% in Q1FY27.
Past result-day moves have usually been positive
Across the eight recent result reactions, the stock rose six times and fell twice. The median absolute move was 2.38%, so that is the relevant historical scale for comparing the eventual response to this quarter. The current quarter’s reaction is not yet part of that record.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹653 cr | ₹629 cr | +3.80% | +8.31% |
| Other income | ₹45 cr | ₹50 cr | -9.89% | -33.24% |
| Expenses | ₹406 cr | ₹393 cr | +3.14% | +3.20% |
| Operating profit | ₹248 cr | ₹236 cr | +4.92% | +17.87% |
| Operating margin (%) | 37.90% | 37.50% | — | — |
| Interest | ₹1 cr | ₹2 cr | -30.81% | -55.08% |
| Depreciation | ₹14 cr | ₹15 cr | -3.52% | -1.04% |
| Profit before tax | ₹277 cr | ₹269 cr | +2.92% | +6.61% |
| Tax | ₹72 cr | ₹69 cr | +4.65% | +6.54% |
| Net profit | ₹204 cr | ₹200 cr | +2.33% | +6.63% |
| EPS (₹) | ₹44.69 | ₹43.68 | +2.31% | +6.63% |
Operating margin of 37.90% compares with a Healthcare sector median of 29.83% across 9 peers that have reported Q1FY27.
What to watch
- Whether standalone operating margin holds above 37.90% after the recent recovery.
- Whether revenue growth remains ahead of expense growth after the year-on-year gap of 8.31% versus 3.20%.
- Whether other income remains a material contributor after accounting for 16.21% of pre-tax profit.