Pfizer’s Quarterly Revenue Trend in Q2 2018

Pfizer (PFE) reports its revenue into two business segments: Innovative Health and Essential Health.

As we discussed in the previous article, Pfizer reported a YoY (year-over-year) rise of 4% in its top line to $13.5 billion in the second quarter compared to $12.9 million during the second quarter of 2017. This outperformance was driven by a 2% favorable foreign exchange impact and a 2% rise in operating revenue in the second quarter.

The chart above shows Pfizer’s revenues since the first quarter of 2017.

The Innovative Health segment reported revenue of $8.27 billion in the second quarter, an 8% rise YoY compared to $7.67 billion during the second quarter of 2017. This rise included a 5% rise in operating revenue and a 3% favorable impact of foreign exchange.

The Essential Health segment reported revenue of $5.19 billion in the second quarter, a 1% fall YoY compared to $5.23 billion during the second quarter of 2017. This fall included a 4% fall in operating revenue offset by a 3% favorable impact of foreign exchange.

The US markets reported a 2% fall in revenue to $6.3 billion in the second quarter compared to ~$6.3 billion in the second quarter of 2017. The fall was driven by a 14% fall in the sales of the company’s Essential Health products to ~$1.6 billion in the quarter, and it was partially offset by a 3% rise in the sales of Innovative Health products to ~$4.6 billion.

The international markets reported an 11% rise in revenue to ~$7.2 billion in the second quarter, including a 5% operational rise and a 6% favorable impact of foreign exchange.

The iShares US Healthcare ETF (IYH) holds 6.4% of its total investments in Pfizer, 9.6% in Johnson & Johnson (JNJ), 2.7% in Gilead Sciences (GILD), and 4.8% in Merck & Co. (MRK).