Pfizer (PFE) reported a beat in second quarter earnings Tuesday, and reaffirmed its 2025 revenue guidance of $61 billion to $64 billion.
The company reported revenue of $14.7 billion, compared to Wall Street expectations of $13.5 billion, and earnings per share of $0.78, versus estimates of $0.58 per share.
The company’s stock traded higher following the earnings release in premarket trading on Tuesday.
CEO Albert Bourla said the company is proving out its business development strategy with Tuesday’s beat, as investors have waited for strong performance post-COVID.
“Pfizer had another strong quarter of focused execution and we’re pleased with our progress in advancing our R&D pipeline, driving our commercial performance and expanding our margins,” he said in a statement. “We continue to strengthen our company for the future and we’re confident in our ability to create further value for patients and our shareholders.”
Pfizer has been in a cycle of right-sizing its business after the outsized COVID-19 profits boosted the company’s coffers and stock for several quarters. Since the pandemic waned and with recent signals from US health leaders that could result in even fewer vaccinations moving forward, investors have been waiting to see if its multibillion-dollar acquisitions will result in new blockbusters to fill an anticipated revenue decline toward the end of the decade, as Pfizer will face a number of patent expirations.
The company has initiated several cost-cutting efforts in the past year, including layoffs and exiting some clinical trials, to achieve $4.5 billion in savings by the end of this year. That’s where the latest guidance change comes in. Between the cuts and the $43 billion Seagen acquisition in the past few years, the company is boosting its top and bottom lines.
The company revised its earnings per share for the year higher by $0.10 to a range of $2.90 to $3.10. The small raise was due to a one-time $0.20 impact of a licensing deal with Chinese biotech 3SBio.
CFO David Denton said in a statement that the company is on track to deliver stronger results through the year.
“We raised our full-year 2025 Adjusted diluted EPS guidance, demonstrating confidence in our ability to execute against our strategic priorities and deliver strong results for shareholders,” he said.
Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
