Pfizer Q2 Earnings Beat Estimates, Oncology Drives Top-Line Growth

Pfizer PFE reported second-quarter 2025 adjusted earnings per share of 78 cents, which comprehensively beat the Zacks Consensus Estimate of 58 cents per share. Earnings rose 30% year over year.Revenues came in at $14.65 billion, up 10% from the year-ago quarter on a reported as well as operational basis. Total revenues also significantly beat the Zacks Consensus Estimate of $13.78 billion.Revenues from the Vyndaqel family, Padcev, Lorbrena, Paxlovid and BioNTech BNTX-partnered Comirnaty vaccine rose in the quarter. Sales of some other key products like Prevnar, Xeljanz, and Eliquis also improved from first-quarter levels. However, higher manufacturer discounts resulting from the Medicare Part D redesign under the Inflation Reduction Act (IRA) hurt U.S. revenues.International revenues rose 6% on an operational basis to $5.76 billion. U.S. revenues rose 13% to $8.9 billion.Adjusted selling, informational and administrative (SI&A) expenses declined 8% (operationally) in the quarter to $3.4 billion. Adjusted R&D expenses declined 9% to $2.44 billion.PFE’s Segment DiscussionPfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment declined 12% operationally to $5.54 billion. The Specialty Care unit recorded sales of $4.38 billion, up 7%. Sales of Oncology rose 11% to $4.39 billion.PFE Primary Care SalesIn Primary Care, alliance revenues and direct sales from Bristol-Myers BMY for blood-thinning treatment Eliquis rose 6% to $2.0 billion as gains from higher demand trends globally were partially offset by IRA-driven lower pricing and price erosion in some ex-U.S. markets. Alliance revenues from Bristol-Myers-partneredEliquis beat the Zacks Consensus Estimate of $1.95 billion but slightly missed our model estimate of $2.03 billion.Global Prevnar family revenues rose 2% to $1.38 billion. Prevnar revenues beat the Zacks Consensus Estimate of $1.36 billion as well as our model estimate of $1.31 billion. Prevnar sales rose 3% in the United States while sales were flat in international markets.Direct sales and alliance revenues from partner BioNTech for Comirnaty were $381 million in the quarter, up 95% year over year due to higher revenues in the United States (due to higher market share) and higher contractual deliveries in some ex-U.S. markets. Comirnaty sales beat the Zacks Consensus Estimate of $193.0 million and our estimate of $196.2 million.Paxlovid revenues were $427.0 million in the quarter, up 71% year over year. Paxlovid revenues beat the Zacks Consensus Estimate of $299.0 million and our model estimate of $201.3 million.Nurtec ODT/Vydura contributed $359 million in the quarter, up 1% year over year.Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $143.0 million, flat year over year. Abrysvo U.S. sales are being hurt due tolimited recommendations for RSV vaccinations issued by the US Advisory Committee on Immunization Practices.PFE’s Specialty Care SalesGlobal Vyndaqel family revenues of $1.62 billion rose 21% year over year, driven by continued demand growth due to increases in diagnosis and treatment rates, primarily in the United States and developed Europe, which were partially offset by higher manufacturer discounts due to the IRA Part D redesign. The Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales were in line with the Zacks Consensus Estimate but beat our model estimate of $1.57 billion.Xeljanz sales rose 6% to $322 million. Enbrel revenues declined 14% to $154 million.PFE’s Oncology SalesIn Oncology, Ibrance revenues declined 8% year over year to $1.05 billion due to continued competitive pressure across markets, generic entry and unfavorable timing of shipments in select international markets, and the IRA impact in the United States. Ibrance revenues were, however, in line with the Zacks Consensus Estimate and beat our estimate of $992.2 million.Among the antibody-drug conjugates or ADCs added from the 2023 acquisition of Seagen, Adcetris sales of $255 million declined 9% year over year due to competitive pressure in the United States. Padcev rose 38% to $542 million, driven by strong demand trends as well as a one-time benefit. Padcev sales beat the Zacks Consensus Estimate of $494.0 million, and our model estimate is $499.2 million.Xtandi recorded alliance revenues of $566 million in the quarter, up 14% year over year. Inlyta revenues were $243 million in the quarter, down 4%. Lorbrena sales rose 48% to $251 million.PFE Re-Affirms 2025 Top-Line Guidance, Ups EPS ViewPfizer maintained its 2025 guidance for total revenues while raising its EPS guidance for the year.Pfizer projects total revenues between $61.0 billion and $64.0 billion.Adjusted earnings per share are expected in the range of $2.90 to $3.10, up from the prior expectations of $2.80 to $3.00.The EPS guidance includes a one-time acquired In-Process R&D charge of 20 cents per share related to Pfizer’s recent licensing agreement with Chinese biotech, 3SBio. Under the deal, which closed last month, Pfizer has in-licensed global development and commercialization rights, ex-China, to 3SBio’s SSGJ-707, a bispecific antibody targeting two proteins, PD-1 and VEGF. The charge will be recorded in the third quarter of 2025.Pfizer said that its guidance includes the impact of currently imposed tariffs from China, Canada, and Mexico, as well as the potential impact of future tariffs mentioned by President Trump in his letter sent in late July. Last month, Trump sent letters to several large drugmakers, including Pfizer, to implement most-favored-nation (MFN) pricing.Research and development expense is expected to be in the range of $10.4 to $11.4 billion versus the prior expectation of $10.7 billion to $11.7 billion. SI&A spending is expected in the range of $13.1 to $14.1 billion versus the prior expectation of $13.3 billion to $14.3 billion. The adjusted tax rate is expected to be approximately 13% in 2025 (previously approximately 15.0%).Our Take on PFE’s ResultsPfizer’s second-quarter results were strong as it beat estimates for both earnings and sales. Sales of all key products like Eliquis, Paxlovid, Comirnaty, Prevnar and Eliquis beat estimates, while Vyndaqel and Ibrance were in line. Pfizer’s oncology drugs put up an outstanding performance in the quarter.Pfizer reaffirmed its outlook for revenues for 2025. However, the company raised its adjusted EPS guidance range, despite including a one-time charge related to the 3SBIO transaction. Shares were up more than 2% in pre-market trading.So far this year, Pfizer’s stock has declined 6.5% compared with a decrease of 3.4% for the industry.Image Source: Zacks Investment ResearchPfizer faces several challenges, the key being declining sales of its COVID-19 products and U.S. Medicare Part D headwinds in 2025. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, will face patent expirations. The uncertainties around tariffs and a volatile macro environment also remain headwinds.However, with COVID-related uncertainties diminishing, its revenue volatility is declining. Pfizer’s key drugs like Vyndaqel, Padcev and Eliquis and new and newly acquired products should continue to drive top-line growth.Pfizer expects cost cuts and internal restructuring to deliver savings of $7.2 billion by the end of 2027. Pfizer’s significant cost reduction and efforts to improve R&D productivity measures should drive profit growth. Though Pfizer does not expect strong top-line growth over the next three years due to the LOEs, it expects EPS growth.PFE’s Zacks RankPfizer has a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Pfizer Inc. Price and Consensus    Pfizer Inc. price-consensus-chart | Pfizer Inc. QuoteOnly $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bristol Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report BioNTech SE Sponsored ADR (BNTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks