Pfizer raised its full-year profit guidance as cost-cutting efforts and strong business results fueled earnings growth. The company now expects adjusted profit between $2.90 and $3.10 per share. This new forecast improves from its previous range of $2.80 to $3 per share. Revenue guidance remains unchanged at $61 billion to $64 billion. Investors welcomed the profit jump and signs of recovery.
The second-quarter performance beat Wall Street expectations by a wide margin. Pfizer reported adjusted earnings per share of 78 cents versus the expected 58 cents. Revenue reached $14.65 billion, exceeding forecasts and growing 10% from last year. Net income hit $2.91 billion, or 51 cents per share, compared to $41 million a year earlier. This strong quarter signals a rebound from recent financial struggles.
The company’s results come as it faces rising pressure from the White House over drug pricing. President Donald Trump has urged major drugmakers to cut costs for consumers. Additionally, his administration imposed tariffs on pharmaceutical imports from key countries. Pfizer included expected tariff impacts in its outlook but did not break down exact numbers. It had previously estimated $150 million in costs from tariffs.
Moreover, Pfizer must account for a one-time $1.35 billion charge tied to a licensing agreement. The deal allows Chinese firm 3SBio to develop and sell Pfizer’s cancer drug outside China. The charge equals 20 cents per share and will be recorded in the third quarter. This agreement supports Pfizer’s long-term strategy of expanding international partnerships.
Earlier this year, Pfizer expanded its cost-reduction initiatives to stabilize its financial position. The company now projects $7.7 billion in savings by the end of 2027. These savings stem from two broad cost-cutting programs. They aim to counteract revenue declines from the fading Covid product demand. The profit jump shows these efforts are starting to pay off.
In conclusion, Pfizer’s strong quarter and raised outlook offer a boost to investor confidence. While regulatory and political risks remain, cost control helps protect margins. Management continues to refine strategy amid market pressure and global policy shifts. Investors will monitor how well Pfizer navigates pricing demands and trade barriers. For now, the profit jump provides positive momentum.
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