On Tuesday, Pfizer Inc ( PFE ). reported second-quarter 2025 adjusted earnings of 78 cents, compared to 60 cents a year ago, beating the consensus of 57 cents.

Pfizer's ( PFE ) sales jumped 10% year over year to $14.70 billion, above the consensus of $13.41 billion, reflecting an operational increase of 10%.

The operational increase was primarily driven by an increase in revenues for the Vyndaqel family, Comirnaty, Paxlovid, Padcev, Eliquis, and several other products across categories, despite the unfavorable impact of higher manufacturer discounts resulting from the Inflation Reduction Act (IRA) Medicare Part D Redesign.

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Heart drug Vyndaqel family sales increased 21% operationally, to $1.62 billion.

Comirnaty sales were $381 million, up 95% operationally, and Paxlovid sales were up 71% operationally to $427 million.

Cancer drug Padcev sales jumped 38% to $542 million.

Blood thinner Eliquis revenues increased 6% operationally to around $2 billion.

The company's revenue growth was offset by lower sales from its breast cancer drug, Ibrance, of $1.05 billion, down 8% operationally.

The drug had a lower U.S. net price largely due to the impact of higher manufacturer discounts from provisions of the Inflation Reduction Act that redesign Medicare Part D benefits, as well as generic competition and the timing of shipments in certain international markets.

Outlook

Pfizer ( PFE ) reaffirms its 2025 revenues guidance of $61 billion—$64 billion, compared to the consensus of $62.42 billion. T

he company raises its 2025 adjusted earnings per share guidance from $2.80-$3.00 to $2.90-$3.10, compared to the Wall Street estimate of $3. The revised outlook includes a one-time impact of approximately 20 cents related to the 3SBio transaction.

Pfizer ( PFE ) adds that the guidance absorbs the impact of the currently imposed tariffs from China, Canada, and Mexico, as well as potential price changes this year based on the letter received on July 31 from President Trump.

Cost-Cutting Initiatives

Pfizer ( PFE ) said it is on track to deliver approximately $7.7 billion in anticipated overall savings (approximately $7.2 billion of net cost savings). Approximately $4.5 billion of overall net cost savings from Pfizer's ( PFE ) ongoing cost realignment program are expected to be achieved by the end of 2025.

The company is on track to deliver anticipated R&D reorganization cost savings of approximately $500 million to be fully realized by the end of 2026.

The first phase of the Manufacturing Optimization Program is on track to deliver approximately $1.5 billion in net cost savings by the end of 2027, with initial savings anticipated in the latter part of 2025.

Price Action: PFE stock is up 4.12% at $24.50 at the last check on Tuesday.

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