TLDR
- Pfizer beat Q2 earnings expectations with 78 cents per share vs 58 cents expected and revenue of $14.7 billion vs $13.6 billion expected
- Company raised 2025 earnings guidance to $2.90-$3.10 per share, up 10 cents from previous range
- Revenue increased 10% year-over-year driven by strong sales of Eliquis blood thinner and Vyndaqel heart medicine
- Covid products showed surprising strength with vaccine revenue up 96% and Paxlovid up 70% compared to last year
- Guidance includes impact of existing tariffs and potential drug price changes from Trump administration pressure
Pfizer delivered a rare piece of good news to investors Tuesday morning. The pharmaceutical giant crushed second-quarter expectations and raised its full-year profit outlook.
The company reported adjusted earnings of 78 cents per share on revenue of $14.7 billion. Wall Street had expected just 58 cents per share on $13.6 billion in revenue.
Revenue jumped 10% year-over-year. The growth came from several key drivers including currency benefits and strong drug sales.
Pfizer, $PFE, Q2-25 Results:
📊 Adj. EPS: $0.78 🟢
💰 Revenue: $14.7B 🟢
📈 Net Income: $2.91B
🔎 Strong commercial execution and pipeline momentum drove solid growth, prompting an upward revision to 2025 EPS guidance. pic.twitter.com/GS0lSHxWbx— EarningsTime (@Earnings_Time) August 5, 2025
Pfizer’s blood thinner Eliquis continued its solid performance. The heart disease treatment Vyndaqel also contributed to growth.
Perhaps most surprising was the strength in Covid products. Many investors had written off this business as a declining revenue source.
Strong Covid Product Performance
Pfizer’s Covid vaccine Comirnaty brought in $381 million in the quarter. That represented a 96% increase from the same period last year.
The jump came from higher market share and more contractual deliveries internationally. Analysts had only expected $205 million in vaccine sales.
The Covid pill Paxlovid also exceeded expectations. Sales reached $427 million, up 70% year-over-year.
Higher U.S. pricing helped drive Paxlovid’s growth. However, lower infection rates and reduced government purchases offset some gains.
Analysts had projected just $259 million for Paxlovid. The actual results nearly doubled expectations.
Other drugs also performed well. The bladder cancer treatment Padcev and Eliquis both topped analyst estimates.
Guidance Hike Reflects Confidence
Based on the strong results, Pfizer raised its 2025 earnings guidance. The new range of $2.90 to $3.10 per share represents a 10-cent increase.
CFO David Denton said the hike demonstrates confidence in executing strategic priorities. The company maintained its revenue guidance of $61 billion to $64 billion.
The outlook includes several challenging factors. Pfizer accounted for existing tariffs on China, Canada, and Mexico.
The guidance also considers potential drug price changes. President Trump sent a letter to CEO Albert Bourla demanding price cuts by September 29.
Trump’s letter followed his executive order reviving the “most favored nation” pricing policy. This controversial plan would tie U.S. drug prices to lower international rates.
Pfizer didn’t specify exact costs from these political pressures. In April, executives said existing tariffs would cost about $150 million in 2025.
The company faces other headwinds beyond politics. Key drug patents expire soon, including Eliquis next year.
Cancer drugs Xtandi and Ibrance lose patent protection in 2027. These expirations threaten billions in annual revenue.
Pfizer has been working to replace this revenue. The company licensed cancer drug SSGJ-707 from Chinese biotech 3SBio for $1.3 billion upfront.
The licensing deal will create a one-time charge of $1.35 billion in the third quarter. That equals about 20 cents per share.
Shares rose 1.9% to $23.98 in premarket trading Tuesday. Despite the strong results, Pfizer stock remains down over 10% this year and about 20% over 12 months.
The company continues its cost-cutting efforts aimed at delivering $7.7 billion in savings by 2027. These programs help offset declining Covid revenue and patent expirations.
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