Pfizer reported third-quarter earnings and revenue that topped Wall Street estimates and raised its full-year profit guidance, as cost reductions helped offset declining sales.
The pharmaceutical giant now expects full-year adjusted profit between $3 and $3.15 per share, up from its prior forecast of $2.90 to $3.10. Pfizer said the improvement reflects its strong performance, continued confidence in its business, and progress in reducing expenses.
The company also recorded a one-time $1.35 billion charge tied to its licensing agreement with Chinese biotech 3SBio, which reduced earnings by about 20 cents per share. Pfizer noted that its 2025 outlook accounts for current tariffs under President Donald Trump’s administration but excludes any pharmaceutical-specific tariffs, from which it is exempt under a new pricing agreement with the White House.
Pfizer maintained its full-year revenue guidance of $61 billion to $64 billion.
For the quarter, the company posted adjusted earnings per share of 87 cents versus 63 cents expected, and revenue of $16.65 billion compared with $16.58 billion expected. Revenue fell 6% year-over-year, mainly due to lower demand for its Covid vaccine and antiviral pill Paxlovid.
Net income was $3.54 billion, or 62 cents per share, down from $4.47 billion, or 78 cents per share, a year earlier.
Pfizer said it remains on track to cut costs by about $7.7 billion by 2027, with $4.5 billion in reductions planned by 2025.
The results come weeks after Pfizer became the first drugmaker to strike a deal with President Trump to voluntarily lower U.S. drug prices. Under the agreement, Pfizer’s products will avoid new pharmaceutical tariffs for three years as long as it continues to invest in domestic manufacturing — including $70 billion planned for reshoring production and research.
Following a steep decline in its Covid-related business, Pfizer is pivoting toward new growth areas, such as oncology products from its $43 billion Seagen acquisition and a potential deal with obesity biotech Metsera. The company is currently in a bidding war with Novo Nordisk for Metsera and has filed lawsuits accusing Novo Nordisk of anticompetitive conduct.
Pfizer’s Covid shot Comirnaty brought in $1.15 billion in revenue for the quarter, down 19% year over year, while Paxlovid generated $1.23 billion, a 55% drop. Meanwhile, sales of other key drugs rose — the blood thinner Eliquis grew 25% to $2.02 billion, Vyndaqel drugs hit $1.59 billion, and migraine treatment Nurtec brought in $412 million, all exceeding analyst expectations.
Shares of Pfizer are down 7% for the year.