Pfizer has raised its full-year adjusted earnings forecast for 2025, driven by cost-cutting measures and robust second-quarter performance that exceeded Wall Street expectations. The pharmaceutical giant now anticipates adjusted earnings per share between $2.90 and $3.10, up from its prior projection of $2.80 to $3.00. Pfizer maintained its revenue outlook for the year, which remains in the range of $61 billion to $64 billion.
The improved forecast comes as Pfizer posted second-quarter earnings that beat analyst estimates. Adjusted earnings per share reached 78 cents, surpassing the expected 58 cents, while revenue rose to $14.65 billion, exceeding the anticipated $13.56 billion. This marks a 10% year-over-year increase in revenue, signaling a strong rebound for the company following a period of declining sales from its COVID-19 products.
Pfizer attributed the revenue growth to stronger-than-expected sales across multiple products. Its COVID-19 vaccine, Comirnaty, generated $381 million in the second quarter, nearly doubling from the same period a year ago due to increased market share and international deliveries. Additionally, Pfizer’s antiviral treatment Paxlovid brought in $427 million, up 70% year-over-year, benefiting from a higher U.S. net price.
Pfizer’s cost-cutting strategy strengthens 2025 earnings outlook
Other key contributors included Vyndaqel for cardiomyopathy, the bladder cancer drug Padcev, and the blood thinner Eliquis, which Pfizer co-markets with Bristol Myers Squibb. However, these gains were partially offset by weaker sales of the breast cancer drug Ibrance, affected by pricing pressures from Medicare reforms and international generic competition.
The company’s revised outlook accounts for a one-time charge of $1.35 billion related to a licensing agreement with Chinese drugmaker 3SBio to develop and commercialize a cancer treatment outside China. Without this charge, Pfizer CFO David Denton noted the company’s profit guidance would have increased by an additional 30 cents per share.
Pfizer’s financial performance arrives amid mounting political scrutiny over drug pricing. The company, along with other pharmaceutical firms, faces calls from President Donald Trump to lower U.S. drug prices. Trump’s administration has imposed tariffs on pharmaceutical imports from China, Canada, and Mexico, while proposing further measures such as the “most favored nation” policy to align U.S. drug prices with lower international rates.
Analysts cautious despite Pfizer’s strong earnings streak and valuation
Pfizer confirmed receiving a letter from the White House requesting concrete steps to reduce drug prices by September 29, with CEO Albert Bourla indicating that discussions with the administration have been “extremely productive.” Despite these regulatory challenges, Pfizer has expanded its cost-cutting initiatives. In April, the company announced an acceleration of its efficiency programs, targeting $7.7 billion in savings by the end of 2027.
These initiatives are aimed at offsetting revenue declines from pandemic-era products and stabilizing the company’s financial trajectory. Pfizer’s shares rose over 4% following the earnings release, reflecting investor confidence in the company’s ability to navigate pricing pressures while delivering stronger-than-expected financial results. However, analysts continue to express caution regarding long-term growth, citing patent expirations and ongoing pricing challenges as key risks for the company. – By Content Syndication Services.
