PFZ.L Share News (PFZ)

(Sharecast News) - Pfizer raised its full-year profit forecast on Tuesday after reporting second-quarter earnings and revenue that exceeded Wall Street expectations, driven by strong sales of key products and progress in cost-cutting initiatives.

The pharmaceuticals giant posted adjusted earnings per share of 78 cents, well above analysts' estimates of 58 cents, while revenue rose 10% year-on-year to $14.7bn, also surpassing forecasts.

It said it now expected adjusted earnings per share for 2025 to range between $2.90 and $3.10, up from its previous guidance of $2.80 to $3.00.

Pfizer reaffirmed its revenue outlook of $61bn to $64bn.

The raised profit guidance reflected stronger-than-expected business performance in the first half of the year, operational efficiencies, a lower effective tax rate, and a favorable impact from currency movements.

CEO Albert Bourla said Pfizer delivered "another strong quarter of focused execution" and highlighted the company's progress in advancing its research and development pipeline and improving margins.

Chief financial officer David Denton noted that Pfizer's performance "demonstrates our continued focus on commercial execution and operational efficiency".

Second-quarter revenue growth was driven by strong performances across several products.

Sales of Vyndaqel, used to treat certain types of heart disease, rose 21% to $1.62bn.

Covid-19 products also beat expectations, with the vaccine Comirnaty generating $381m in revenue - up 95% from the prior year - and antiviral Paxlovid bringing in $427m, a 71% increase.

Both figures topped analysts' estimates by significant margins.

Other notable contributors included bladder cancer treatment Padcev, which saw a 38% increase in sales, and blood thinner Eliquis, which brought in $2bn in revenue.

Meanwhile, revenue from breast cancer drug Ibrance declined 8%, weighed down by US pricing pressure linked to Medicare reforms and increased generic competition abroad.

Pfizer was navigating a challenging environment marked by regulatory scrutiny and tariff risks.

The company confirmed its guidance factored in existing tariffs on imports from China, Canada, and Mexico, as well as potential US drug pricing changes following a recent letter from president Donald Trump urging drugmakers to lower costs by the end of September.

Bourla said Pfizer was engaged in "extremely productive" discussions with the administration aimed at improving affordability while maintaining competitiveness.

The company also absorbed a one-time $1.35bn R&D charge, or 20 cents per share, related to its licensing deal with Chinese firm 3SBio, which would be recorded in the third quarter.

Without that charge, Pfizer's earnings per share guidance would have increased by 30 cents, Denton said.

Pfizer's cost-cutting initiatives meanwhile remained on track, with $7.2bn in net savings targeted by the end of 2027, including $4.5bn by the close of 2025.

The company said it had invested $4.7 billion in R&D so far this year and returned $4.9bn to shareholders via dividends, though no share repurchases had been made in 2025 to date.

At 1117 EDT (1617 BST), shares in Pfizer were up 4.02% in New York, at $24.48.

Reporting by Josh White for Sharecast.com.