Compare Johnson & Johnson and Pfizer on profitability over the latest fiscal year.

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Report

Profitability

JNJ and PFE both show signs of profitability pressure in recent periods, though from meaningfully different angles. JNJ's net interest income collapsed to $62 million in the nine months of fiscal 2025 from $433 million in the comparable prior-year period, as lower rates on cash balances compressed interest income while interest expense rose on a higher average debt balance [JNJ:S0]. On top of that, JNJ absorbed restructuring charges of $55 million in Q1 2025—including market exits and asset impairments [JNJ:S3]—and fully wrote off a previously partially-impaired asset [JNJ:S0], adding further drag to earnings. PFE, meanwhile, faced modest top-line erosion, with total revenues slipping from $45.9 billion to $45.0 billion and product revenues declining from $38.7 billion to $37.2 billion over the nine months ended September 2024 versus September 2025 [PFE:S1]. However, PFE's cost of sales improved from $11.9 billion to $10.8 billion over the same period [PFE:S1], partially cushioning the revenue headwind. More encouragingly, PFE's pre-tax income from continuing operations rose $386 million to $3.2 billion in Q1 2026 versus Q1 2025, supported by higher revenues [PFE:S0], suggesting some recovery momentum heading into the new fiscal year. On balance, both companies face headwinds, but PFE's improving cost structure and early 2026 pre-tax income rebound offer a modestly more constructive near-term profitability signal relative to JNJ's compounding pressures from rising debt costs and asset write-offs.

JNJ: JNJ's profitability is being squeezed by a sharp decline in net interest income—falling to $62 million in the nine months of fiscal 2025 from $433 million in the prior-year period—driven by lower rates on cash and higher interest expense on an elevated debt balance [JNJ:S0]. Restructuring charges of $55 million in Q1 2025, including asset impairments and market exits [JNJ:S3], add further pressure, and a previously partially-impaired asset has now been fully written off [JNJ:S0].

PFE: PFE experienced modest top-line erosion over the nine months ended September 2025, with total revenues declining to $45.0 billion from $45.9 billion a year earlier [PFE:S1], though cost of sales fell meaningfully from $11.9 billion to $10.8 billion [PFE:S1], partially offsetting the revenue headwind. More encouragingly, pre-tax income from continuing operations rose $386 million to $3.2 billion in Q1 2026 versus Q1 2025 [PFE:S0], pointing to improving profitability momentum.

Caveat: The evidence lacks direct net income, operating income, or margin figures for either company, making a fully comprehensive profitability comparison difficult. Key metrics such as EPS, operating margin, and net margin are absent from the retrieved passages, so the analysis relies on partial income statement line items and qualitative commentary.

Cross-Axis Takeaway

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Citations (10)

qual JNJ item_2_mda

"2020. There was also a partial impairment of this asset for $0.2 billion in the fiscal third quarter of 2023. This asset is now fully impaired. Interest (income) expense Interest (income) expense in the fiscal nine months of 2025 was net in"

qual JNJ item_7_mda

"come Taxes: Income taxes are recorded based on amounts refundable or payable for the current year and include the results of any difference between U.S. GAAP accounting and tax reporting, recorded as deferred tax assets or liabilities. The"

qual JNJ item_7a_market_risk

"Item 7A. Quantitative and qualitative disclosures about market risk The information called for by this item is incorporated herein by reference to Item 7. Management’s discussion and analysis of results of operations and financial condition"

qual JNJ item_2_mda

"distribution network arrangements. The pre-tax restructuring expense was $55 million in the fiscal first quarter of 2025, of which $17 million was recorded in Restructuring, $8 million in Cost of products sold and $30 million in Other (Inco"

qual JNJ item_1_business

"ances, classifications or approvals, and could result in a substantial modification to our business practices and operations. Equivalent enforcement mechanisms exist in different countries in which we conduct business. The costs of human he"

qual PFE item_2_mda

"vid, Total revenues increased 7% operationally. See the Total Revenues by Geography and Total Revenues––Selected Product Discussion sections within MD&A for more information, including a discussion of key drivers of our revenue perf"

qual PFE item_4_mine_safety

"Months Ended Nine Months Ended (MILLIONS, EXCEPT PER SHARE DATA) September 28, 2025 September 29, 2024 September 28, 2025 September 29, 2024 Revenues: Product revenues $ 13,920 $ 15,417 $ 37,168 $ 38,731 Alliance revenues 2,298 1,"

qual PFE item_7a_market_risk

"net income (loss) in our results of operations. Since 2016, we have recognized dividends from ViiV as income in Other (income)/deductions––net when earned, including dividends of $ 265 million in 2025, $ 272 million in 2024 and $ 265 m"

qual PFE item_7a_market_risk

"to reflect the various risks inherent in the projected cash flows; and the tax rate, which seeks to incorporate the geographic diversity of the projected cash flows. For additional information on identifiable intangible assets, see Note 1"

qual PFE item_2_mda

"See the Total Revenues by Geography and Total Revenues––Selected Product Discussion sections for more information, including a discussion of key drivers of our revenue performance. Certain of our vaccines, including Comirnaty, are subje"