Pfizer ups profit forecast as cost cuts begin to take effect

Pfizer hiked its annual earnings guidance due to strong financials in the first six months of the year — including a revenue beat in the second quarter — coupled with continued cost savings under a plan that was expanded earlier in April. "Our robust second-quarter…performance demonstrates our continued focus on commercial execution and operational efficiency," remarked Chief Financial Officer David Denton.

 

The company now expects earnings per share (EPS) in 2025 to be in the range of $2.90 to $3.10, with both ends lifted by $0.10 from prior guidance. Meanwhile, revenue is still forecast to be between $61 billion and $64 billion, a decline from last year.
 

According to Pfizer, the updated outlook accounts for existing tariffs on imports from China, Canada and Mexico, whilst it also factors in "potential price changes this year" amid demands from US President Donald Trump. "We continue to be actively engaged with policymakers as we navigate a complicated and rapidly evolving geopolitical environment," noted CEO Albert Bourla.
 

Having recently launched — alongside partner Bristol Myers Squibb — a direct-to-consumer (DTC) push for the factor Xa inhibitor Eliquis in the US, Bourla said Tuesday that the initiative is "exactly" what Trump has asked the industry to do. "Also we have serious discussions in the industry" around the DTC option, Bourla explained, adding "all the major companies…are ready to roll up their sleeves and execute something like that."
 

Sales top estimates

 

Sales in the second quarter rose 10% to $14.7 billion, topping estimates of $13.6 billion, primarily driven by the performance of the Vyndaqel franchise, Padcev, Eliquis, and the COVID-19 products Comirnaty and Paxlovid. Net income was $2.9 billion, up from $41 million in the year-ago period.
 

Quarterly sales of the Vyndaqel franchise, which includes Vyndamax and Vynmac, jumped 22% to $1.6 billion, broadly in line with estimates, while Eliquis grew 7% to $2 billion, above forecasts of $1.9 billion. Meanwhile, Padcev revenue climbed 38% to $542 million.
 

Pfizer added that sales of the antiviral Paxlovid were 70% higher at $427 million, with revenue from the Comirnaty vaccine — which is partnered with BioNTech — nearly doubled to $381 million. Both products topped expectations of $244 million and $188 million, respectively.

 

J.P. Morgan analyst Chris Schott said that the quarterly beat and the forecast raise did not come as a surprise given Pfizer's better-than-expected cost management. "We would not be surprised with additional upside to EPS as the year progresses," Schott added.