Pfizer shares rise 3% after upping profit forecast for 2025
Pfizer bucked the trend of a tepid big pharma Q2 window, raising its full-year profit forecast on the back of strong sales for heart disease drug Vyndaqel (tafamidis) and blood thinner Eliquis (apixaban), amongst others.
The company’s quarterly revenues reached $14.7bn, up 10% from the same period in 2024. The company also reported adjusted earnings of $0.78 per share, easily surpassing $0.58 per share forecast by FactSet-polled analysts.
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While the drugmaker reaffirmed its 2025 revenue guidance of $61bn to $64bn, it raised its full-year 2025 profit outlook. Pfizer now expects to earn $2.90 to $3.10 per share, compared with its previous expectations of $2.80 to $3.00 for the year.
Shares in Pfizer rose 3% to a price of $24.27 at market open on 8 August compared to the previous day’s market close. The company has a market cap of $138.9bn.
It marks a strong turnaround for CEO Dr Albert Bourla, who was at risk of losing his leadership position nine months ago amid pressure from activist investor Starboard.
Bourla said: “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. 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.”
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By GlobalDataThe updated forecast for 2025 also considers a one-time $1.35bn charge related to a licensing agreement with 3SBio, courtesy of a partnership inked in May 2025. The charge will be recorded in Q3 2025 with a negative impact of approximately $0.20 per share.
The strong Q2 results were fuelled by a diverse group of drugs in Pfizer’s portfolio, representing the robustness of the company’s commercial offerings. Vyndaqel sales were up 21% to net global sales of $1.6bn, while blood thinner Eliquis generated sales around the $2bn mark for the quarter.
Pfizer contested falling Covid-19 demand by reporting sales growth for two products related to the virus. Sales for the Comirnaty vaccine surged 95% while antiviral medication Paxlovid grew 71%. Together, they brought in a combined $808m for the company.
In addition to Covid-19, Pfizer has a long list of vaccines on the market for respiratory syncytial virus (RSV), pneumococcal disease, and Lyme disease, amongst others. Together, vaccine sales comprise around 20% of Pfizer’s revenues. A close eye has been on the Q2 results of companies with vaccine specialism amid changes to the US regulatory environment under health secretary RFK Jr.
Pfizer is also part of a wider pharmaceutical industry battling macroeconomic headwinds from tariffs imposed by US President Donald Trump. A 15% tariff on imported pharmaceutical products from the EU was announced last week, with fiscal disruption to companies predicted. Drugmakers are also bracing themselves for drug pricing changes – Pfizer was among the companies written to by Trump calling for steps to cut prices of their drugs.
“The company’s guidance absorbs the impact of the currently imposed tariffs from China, Canada, and Mexico, as well as potential price changes this year based on the letter received on 31 July 2025 from President Trump,” Pfizer said in the Q2 report.
Pfizer is one of many companies undergoing cost-saving strategies. The company said it is on track to deliver $7.2bn in net savings by the end of 2027 as rising costs hit drugmakers across the US and Europe. Moderna, MSD, and BMS also all have billion-dollar cost-cutting programmes planned or underway.
A further headwind coming Pfizer’s way is a $0.5bn hit from generic and biosimilar competition. Pfizer lost patent protection for blockbuster drug Ibrance (palbociclib) and is set to lose exclusivity for further drugs in the coming years.
Research company Third Bridge’s global healthcare lead Lee Brown said: “We note that market enthusiasm tied to Pfizer’s strong Q2 performance could be tempered for several reasons.
“Despite delivering sales around $1.2bn ahead of expectations, Pfizer opted to stand pat on its 2025 sales guidance. Furthermore, Pfizer only raised its guidance for adjusted EPS by $0.10, despite a $0.20 beat in Q2. Lastly, lower R&D investment appears to have driven a meaningful amount of the operational upside relative to consensus expectations, coming in around $246m below [Wall] Street estimates at just under $2.5bn, which the market typically doesn’t reward given implications for future pipeline innovation.”
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