Pfizer (PFE) earnings Q3 2025

Pfizer, the pharmaceutical giant, has reported its third-quarter earnings and revenue, which have exceeded estimates. The company’s CEO, Albert Bourla, has expressed confidence in the business, citing solid performance and progress in reducing costs. Despite a decline in sales for the period, Pfizer has hiked its full-year profit guidance to between $3 and $3.15 per share, up from the previous guidance of $2.90 to $3.10 per share.

The company’s revenue for the third quarter was $16.65 billion, down 6% from the same period a year ago, largely due to lower demand for its Covid vaccine and Paxlovid, an antiviral pill for the virus. However, the company’s earnings per share were 87 cents, exceeding the expected 63 cents. Pfizer has also maintained its full-year revenue guidance of $61 billion to $64 billion.

Cost-Cutting Measures and Guidance

Pfizer has announced that it is on track to cut costs by about $7.7 billion by the end of 2027 as part of two separate initiatives. The company plans to slash costs by $4.5 billion by the end of 2025. This move is expected to help the company offset declining sales and maintain its profitability. Pfizer has also factored in a one-time $1.35 billion charge tied to its licensing agreement with Chinese biotech 3SBio, which hit earnings by roughly 20 cents per share.

The company’s 2025 guidance also accounts for President Donald Trump’s current tariffs on China, Canada, and Mexico. However, it does not reflect Trump’s threatened pharmaceutical-specific tariffs, as Pfizer is exempt from those levies under a new drug pricing deal with the president. The deal requires Pfizer to invest $70 billion in reshoring domestic drug manufacturing and research facilities.

Weaker Covid Product Sales

Pfizer’s Covid products have weighed on third-quarter sales, with lower infection rates reducing Paxlovid demand and a narrower vaccine recommendation from the Centers for Disease Control and Prevention (CDC) in the US shrinking the eligible population for the shot, called Comirnaty. The company’s Covid shot booked $1.15 billion in revenue for the third quarter, down 19% from the year-earlier period.

Pfizer’s antiviral Covid pill Paxlovid posted $1.23 billion in sales for the third quarter, down 55% from the same period a year ago. However, the company’s other products, such as its blood thinner Eliquis, have seen higher revenues. Eliquis drew $2.02 billion in sales, a 25% increase, topping analysts’ estimates for the period.

New Developments and Investments

Pfizer is slowly regaining its footing after a rapid decline in its Covid business over the last three years. The company is betting on new ways to boost revenue, including through cancer products from its $43 billion acquisition of Seagen and a proposed deal with the obesity biotech Metsera. However, Pfizer is in a heated bidding war with Novo Nordisk for Metsera, and the company has filed its second lawsuit against the two companies, alleging that Novo Nordisk’s attempt to outbid Pfizer to acquire Metsera is anticompetitive.

Shares of Pfizer are down 7% for the year, but the company remains confident in its business and is investing in new areas to drive growth. With its cost-cutting measures and new developments, Pfizer is well-positioned to navigate the challenges in the pharmaceutical industry and maintain its position as a leader in the market.