Here's why Pfizer (PFE) stock is surging

Financial Guidance - Pfizer projected 2025 revenue between $61 billion and $64 billion, aligning closely with Wall Street expectations of $63.26 billion [2] - The company forecasted adjusted earnings per share (EPS) in the range of $2.80 to $3.00, with a midpoint of $2.90 that matches analyst expectations [3] Cost-Cutting Measures - Pfizer has achieved $4 billion in net cost savings through 2024 and anticipates an additional $500 million in savings for 2025 [5] - The aggressive cost-cutting strategy has reassured investors amid financial pressures from declining COVID-related revenue and rising competition [4] Regulatory Challenges - Pfizer faces a $1 billion revenue hit due to changes in Medicare Part D under the Inflation Reduction Act, which introduces a $2,000 cap on out-of-pocket drug costs for seniors starting in 2025 [5][6] Analyst Sentiment - Analysts view Pfizer's guidance as a positive step, indicating progress toward a more predictable financial structure [7] - The forecasts are described as "reasonable and achievable," suggesting potential for upgrades later in the year [7] Market Performance - Pfizer shares rose nearly 3% to $25.98 in premarket trading following the financial guidance release, with a current trading price of $26.30, marking a 2.7% gain for the day [1][2] - Despite recent gains, Pfizer remains down 11% year-to-date and trades at less than half its pandemic peak value [2]