Strong Commercial Performance and Revenue Growth

Pfizer Inc. reported strong financial results for the second quarter of 2025. The company reaffirmed its full-year revenue guidance while raising its adjusted diluted earnings per share (EPS) guidance. Revenues for the second quarter totaled $14.7 billion, a 10% increase compared to the prior-year quarter. This growth is driven by improved commercial execution and operational efficiency. Adjusted diluted EPS was $0.78, a 30% increase compared to the previous year. Dr. Albert Bourla, Chairman and CEO of Pfizer, stated, “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.” He added that the company continues to strengthen for the future and is confident in its ability to create further value for patients and shareholders. Pfizer’s efforts are also directed at achieving approximately $7.2 billion in net cost savings by the end of 2027, which will drive productivity gains and operating margin expansion. These figures demonstrate Pfizer’s ability to generate growth even in a complex economic environment and to address market challenges such as the Inflation Reduction Act (IRA) in the U.S., which negatively impacted some figures but was offset by positive performance in other categories.

Key Growth Drivers and Commitment to Innovation

The growth in Pfizer’s operational revenue in the second quarter was driven by several key products. The Vyndaqel family of products saw an operational increase of 21% in global sales, thanks to strong demand and growth in patient diagnosis, primarily in the U.S. Comirnaty, the COVID-19 vaccine, surged by 95% operationally, primarily due to an increase in market share in the U.S. and higher contractual deliveries in international markets. Paxlovid recorded a 71% operational increase, resulting from a higher net price in the U.S. after the transition from a government agreement. Padcev, for treating bladder cancer, grew by 38% operationally with an increase in market share. Eliquis showed a 6% increase in global demand, despite a lower net price in the U.S. Abrysvo, for RSV immunization, rose by 155% operationally, thanks to high demand for the maternal indication, which offset a decline in vaccination for older adults. Lorbrena, for lung cancer treatment, grew by 48% operationally due to an increase in market share. Conversely, Ibrance recorded an 8% operational decrease due to the entry of generic competitors and the impact of the Inflation Reduction Act in the U.S. The company’s adjusted gross profit margin increased from 20.8% to 23.9%. These declines highlight the challenges in the pharmaceutical market, which require a constant focus on innovation and products with valid patents.

Significant Progress in the Development Pipeline

Pfizer continues to demonstrate significant progress in its research and development pipeline. The company, along with its partners, reported positive results from several clinical trials. For example, Braftovi, in combination with other drugs, showed efficacy in reducing the risk of death in colorectal cancer patients. Consequently, the U.S. Food and Drug Administration (FDA) accepted a supplemental New Drug Application for the drug’s review. In addition, Pfizer and BioNTech announced that the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) has recommended marketing authorization for their new COVID-19 vaccine, adapted for the LP.8.1 variant, for the 2025-2026 season. Positive results were also obtained from the Phase 3 trial of Hympavzi for treating hemophilia. Pfizer also published positive results from survival analyses of its drug Xtandi, which combines it with other drugs, and presented positive results from the VERITAC-2 trial for vepdegestrant, intended for treating advanced or metastatic breast cancer. This investment in innovation, amounting to $4.7 billion in the first half of 2025, underscores Pfizer’s commitment to organic growth and the development of advanced medical solutions that address existing and emerging medical needs worldwide.

Capital Allocation Strategy and Financial Outlook

Pfizer reaffirmed its revenue guidance for 2025 in the range of $61.0 billion to $64.0 billion but raised its adjusted diluted EPS guidance to a range of $2.90 to $3.10. This new guidance includes the absorption of a one-time impact of approximately $0.20 related to a licensing agreement with 3SBio. The company attributes the improved outlook to strong year-to-date performance, support from foreign exchange rates, progress on cost improvement initiatives, and an improved effective tax rate. Pfizer continues to allocate its capital strategically, including investing $4.7 billion in internal R&D and $150 million in business development transactions in the first half of 2025. Additionally, the company returned $4.9 billion to shareholders through dividends. The company has not repurchased any shares in 2025 but expects to continue deleveraging prudently to maintain a balanced capital allocation strategy and flexibility for potential value-creating transactions. The company also addresses potential risks from generic and biosimilar competitors, which could negatively impact its revenues by approximately $0.5 billion during the year. In the long term, Pfizer is focused on debt reduction and maintaining financial flexibility, with the goal of continuing to invest wisely in development and growth.