Pfizer Inc. has raised its full-year 2025 earnings forecast after reporting stronger-than-expected second-quarter results, fueled by robust sales of key non-COVID drugs and deep cost-cutting efforts. The pharmaceutical giant now expects adjusted earnings per share (EPS) of $2.90 to $3.10, up from the previous projection of $2.80 to $3.00. This move signals renewed confidence in its commercial strategy and operational discipline.
Pfizer’s Strong Q2 2025 Performance
Pfizer posted second-quarter adjusted EPS of $0.78 on revenues of $14.65 billion, surpassing Wall Street expectations of $0.58 per share on $13.56 billion in sales. The 10% year-over-year revenue growth was supported by strong product demand and favorable currency exchange effects.
Leading the charge were two non-COVID blockbusters:
- Vyndaqel, used to treat rare heart conditions, delivered $1.62 billion in sales.
- Eliquis, an anticoagulant co-marketed with Bristol Myers Squibb, generated approximately $2 billion.
Other products contributing to growth included the COVID-19 vaccine Comirnaty, antiviral Paxlovid, and oncology therapies Padcev and Lorbrena.
Stable Revenue Outlook
Despite global macroeconomic uncertainties, Pfizer reaffirmed its 2025 revenue guidance of $61 billion to $64 billion. The company’s ability to maintain its topline forecast reflects confidence in its product portfolio and commercial execution, even as COVID-related revenues stabilize.
Cost-Cutting Strategy Powers Bottom Line
One of the key reasons behind the EPS upgrade is Pfizer’s aggressive cost-reduction strategy. After completing a $4 billion savings program in 2024, Pfizer has expanded its cost-efficiency roadmap with a goal to realize $7.2 to $7.7 billion in total savings by 2027. These include:
- $4.5 billion in core operational savings by the end of 2025
- $1.2 billion in Selling, Informational & Administrative (SI&A) expense cuts by 2027
- $500 million in research and development (R&D) optimization savings by 2026
- $1.5 billion in manufacturing efficiencies
These cost cuts are already being felt. Pfizer has reduced its 2025 operating expense projections, trimming SI&A costs by $200 million to a range of $13.1–$14.1 billion and R&D by $300 million to $10.4–$11.4 billion. The company’s effective adjusted tax rate of approximately 15% is also contributing to its improved bottom line.
Upgraded EPS Guidance
Pfizer’s revised 2025 adjusted EPS outlook of $2.90 to $3.10 per share reflects stronger operational performance and enhanced cost controls. While the midpoint of $3.00 is just slightly below the analyst consensus estimate of $3.02, it demonstrates meaningful progress from early-year projections.
One factor influencing the guidance is a one-time $0.20/share charge associated with licensing a cancer therapy from 3SBio, a China-based biotech firm. Even after accounting for this, Pfizer believes it is on track to meet or exceed its profitability goals.
Challenges and Risks Ahead
Despite the positive outlook, Pfizer faces several external challenges that could affect its long-term performance.
Patent Expirations: Key drugs like Eliquis and Xeljanz are approaching patent cliffs. Generic and biosimilar competition could erode future revenues unless offset by new product launches.
Regulatory Pressures: Policy changes from the Inflation Reduction Act, especially Medicare Part D reforms, could reduce Pfizer’s U.S. drug revenues by about $1 billion in 2025 alone. In addition, newly imposed 15% tariffs on pharmaceutical imports from China, Canada, and Mexico are expected to slightly impact margins, though Pfizer’s strong U.S. manufacturing base is expected to minimize the hit.
R&D Pipeline Risks: While Pfizer’s pipeline is strong, it’s not without setbacks. The company recently halted development of its once-promising obesity drug danuglipron, though it is investing in new obesity treatment assets and collaborations.
Key Products Fueling Momentum
Pfizer’s core business outside of COVID-19 continues to show strong performance. During Q1 and Q2 of 2025:
- Vyndaqel family sales rose more than 30% year-over-year.
- Eliquis remains a major driver, supported by growing demand in global markets.
- Comirnaty and Paxlovid rebounded due to increased COVID activity in select regions.
- Oncology drugs Padcev, Talzenna, and Lorbrena posted solid double-digit growth.
The company is also seeing growing interest in Abrysvo, its RSV vaccine, which could become a long-term franchise in respiratory health.
Strategic Financial Moves
In addition to improving operations, Pfizer has been proactive in strengthening its financial position:
- Invested $2.2 billion in R&D during Q2 to support drug discovery and clinical trials.
- Returned $2.4 billion to shareholders through dividends ($0.43/share per quarter).
- Completed the sale of its stake in Haleon, raising $3.3 billion to increase financial flexibility.
Although Pfizer has a remaining $3.3 billion stock buyback authorization, it has not yet executed significant repurchases in 2025, preferring to preserve capital for R&D and possible acquisitions.
Market Response and Stock Performance
Pfizer’s stock responded positively to the Q2 results and raised guidance, rising over 2.5% in pre-market trading. Investors welcomed the improved profitability, clear cost control strategy, and signs of stability in the company’s broader portfolio.
However, the stock remains down for the year, reflecting investor caution around future growth as COVID-19 revenues decline and competition intensifies in key drug categories.
What’s Next for Pfizer?
As Pfizer looks ahead to the second half of 2025 and beyond, several themes will drive its trajectory:
- Execution of its $7+ billion cost savings initiative through 2027
- Continued growth in non-COVID drugs such as Eliquis, Vyndaqel, and Padcev
- Strategic investment in next-gen therapies, including oncology, rare diseases, and mRNA platforms
- Potential acquisitions in areas like obesity, immunology, and cell therapy
- Navigating regulatory changes and protecting IP for top-selling medications
CEO Albert Bourla emphasized the company’s confidence in its future, noting that “Pfizer is transforming faster than ever, streamlining operations and investing in science to deliver meaningful innovation for patients around the world.”
Final Thoughts
Pfizer’s decision to lift its 2025 profit forecast showcases its resilience in a post-COVID pharmaceutical landscape. With disciplined cost control, a solid product portfolio, and smart financial management, the company is positioning itself for sustainable earnings growth.
While headwinds remain—from patent cliffs to pricing scrutiny—Pfizer appears well-equipped to navigate them. Investors and analysts alike will be watching closely to see if the company can continue delivering operational efficiency while reigniting its innovation engine for long-term value creation.
