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

Core Insights - Pfizer (PFE) reported strong second-quarter 2025 results with adjusted earnings per share of 78 cents, exceeding the Zacks Consensus Estimate of 58 cents, and reflecting a 30% year-over-year increase [1] - Total revenues reached $14.65 billion, a 10% increase from the previous year, significantly surpassing the Zacks Consensus Estimate of $13.78 billion [1] Revenue Breakdown - Revenues from key products such as Vyndaqel, Padcev, Lorbrena, Paxlovid, and the BioNTech-partnered Comirnaty vaccine increased during the quarter, while U.S. revenues were impacted by higher manufacturer discounts due to the Inflation Reduction Act [2] - International revenues rose 6% operationally to $5.76 billion, while U.S. revenues increased 13% to $8.9 billion [2] Expense Management - Adjusted selling, informational, and administrative (SI&A) expenses decreased 8% operationally to $3.4 billion, and adjusted R&D expenses fell 9% to $2.44 billion [3] Segment Performance - Primary Care segment sales declined 12% operationally to $5.54 billion, while Specialty Care sales increased 7% to $4.38 billion, and Oncology sales rose 11% to $4.39 billion [4] - Eliquis sales rose 6% to $2.0 billion, Prevnar family revenues increased 2% to $1.38 billion, and Comirnaty sales surged 95% year over year to $381 million [5][6][7] Guidance and Future Outlook - Pfizer raised its 2025 adjusted EPS guidance to a range of $2.90 to $3.10, while maintaining total revenue guidance of $61 billion to $64 billion [11][17] - The company expects R&D expenses to be between $10.4 billion and $11.4 billion, and SI&A spending to range from $13.1 billion to $14.1 billion [20] Challenges and Strategic Initiatives - Pfizer faces challenges including declining sales of COVID-19 products, U.S. Medicare Part D headwinds, and potential patent expirations for key products between 2026 and 2030 [24] - The company anticipates cost cuts and internal restructuring to yield savings of $7.2 billion by the end of 2027, aiming to drive profit growth despite expected revenue volatility [26]