Shares of Pfizer (PFE) climbed over 2% in pre-market trading after the drugmaker reported better-than-expected Q2 earnings and revenue and lifted its full-year profit outlook. Pfizer now expects full-year adjusted earnings between $2.90 and $3.10 per share, up from its earlier forecast of $2.80 to $3. The company also reaffirmed its 2025 revenue outlook of $61 billion to $64 billion.
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The company said the higher profit outlook is due to strong first-half results, lower costs, a reduced tax rate, and helpful currency shifts. At the same time, Pfizer’s full-year forecast factors in a one-time charge of $1.35 billion, or 20 cents per share, tied to its licensing agreement with Chinese pharmaceutical company 3SBio (TRSBF). The deal allows 3SBio to develop and market Pfizer’s cancer therapy outside of China. The charge will be reflected in the company’s third-quarter results.
Pfizer Posts Impressive Q2 Results
For the second quarter, Pfizer reported adjusted earnings of $0.78 per share on revenue of $14.7 billion, topping FactSet estimates of $0.58 per share and $13.6 billion in revenue. Meanwhile, sales rose 10% year-over-year, boosted by a weaker U.S. dollar and strong demand for its blood thinner Eliquis and heart medication Vyndaqel.
The results follow Pfizer’s move in April to expand its cost-cutting initiatives. With the additional measures introduced, the company now projects total savings of approximately $7.7 billion by the end of 2027. These efforts are part of Pfizer’s plan to bounce back from the sharp drop in its Covid sales and falling stock price in recent years. So far in 2025, Pfizer shares are down more than 11%.
Pfizer Looks Past Tariff Pressures
Pfizer reported Q2 results amid pressure from President Donald Trump’s push to lower U.S. drug prices and prepare for upcoming tariffs on pharmaceuticals.
Pfizer said its updated guidance accounts for existing tariffs from China, Canada, and Mexico, as well as possible price changes. Additionally, the company stated that it has sufficient manufacturing capacity across its 10 U.S. sites to offset any tariff impact and is prepared to shift production to these facilities if needed.
Is PFE Stock a Good Buy?
According to TipRanks’ consensus, PFE stock has a Hold consensus rating based on 4 Buys and 12 Holds assigned in the last three months. At $28.50, the average Pfizer stock price target implies a 21% upside potential.
It is important to note here that these ratings could change following today’s results.
