Pfizer reported a 5% revenue increase to $14.45 billion in Q1, but profits fell to $2.69 billion due to rising research and development expenses. The pharmaceutical giant spent 12% more on R&D compared to last year, driven by accelerated trials for oncology and obesity treatments. While adjusted earnings per share reached 75 cents—surpassing analysts' 72-cent expectations—the company’s bottom line was pressured by higher cost of sales from foreign exchange fluctuations and revised royalty accruals.

Analysts note this reflects Pfizer’s strategic pivot toward long-term innovation, even as short-term margins face headwinds.