10:33 AM EDT, 08/05/2025 (MT Newswires) -- Pfizer ( PFE ) raised its full-year earnings outlook on Tuesday as the pharmaceutical giant recorded stronger-than-expected second-quarter results, buoyed by double-digit revenue growth in primary care and oncology segments.

The company now anticipates adjusted earnings to be in a range of $2.90 to $3.10 per share for 2025, up from its previous forecast of $2.80 to $3. The current consensus on FactSet is for non-GAAP EPS of $3.02. The stock rose 3.9% in Tuesday trade.

The guidance includes a one-time acquired in-process research and development charge of $1.35 billion, linked to Pfizer's ( PFE ) licensing agreement with Chinese biopharmaceutical firm 3SBio announced in May. The company expects to record an unfavorable impact of about $0.20 in the third quarter related to the charge.

"Given our strong performance to date and outlook, including a favorable impact from foreign exchange, our more efficient cost structure as well as improvement in our adjusted effective tax rate, we are raising our full-year 2025 adjusted diluted EPS guidance expectation," Chief Financial Officer David Denton said in prepared remarks. "Without the 3SBio deal, we would have raised our adjusted diluted EPS guidance by ($0.30)."

Pfizer ( PFE ) continues to project revenue of $61 billion to $64 billion for the current year, while the Street is looking for $62.58 billion. The company's non-COVID revenue is continuing to perform "very well operationally and ahead of plan," while it expects favorable foreign-exchange rates to benefit the top line, according to Denton.

"Our plan assumes that the large majority of our COVID revenues are in (the third quarter) and (fourth quarter)," the CFO said. "Given this fact, we believe it is prudent to maintain our full-year revenue outlook as we enter the second half of the year."

The firm's full-year outlook absorbs the impact of currently imposed tariffs from China, Canada and Mexico, as well as potential price changes this year based on a letter received at the end of July from President Donald Trump, it said. "Strategies to help mitigate the potential impacts on our business in the short-term have been implemented," Denton added. "We are continuing to evaluate opportunities and developing plans which may help mitigate the potential long-term impact of tariffs on our business and operations."

Last week, Trump signed an executive order modifying the reciprocal tariff rates for certain countries, setting duties in a range of 10% to 41% for several trading partners of the US.

For the second quarter, the company posted adjusted EPS of $0.78 versus $0.60 the year before, surpassing the average analyst estimate on FactSet of $0.58. Revenue advanced 10% to $14.65 billion, above the Street's view for $13.56 billion.

Revenue in the primary care division, which includes the company's Comirnaty and Paxlovid COVID-19 vaccines, climbed 12% to $5.54 billion. Paxlovid logged a sales jump of 70% amid higher prices in the US, among other factors, while Comirnaty surged 96% with higher contractual deliveries in certain international markets, according to Pfizer ( PFE ).

The company logged a 7% revenue increase in the specialty care business to $4.38 billion, including a 22% gain in the Vyndaqel family of transthyretin amyloidosis treatments. Oncology sales rose 11% to $4.39 billion, boosted by a 38% increase in Padcev sales.

Pfizer ( PFE ) said it remains on track to save roughly $7.2 billion in net costs by the end of 2027 from its previously announced cost-saving initiatives. The company expects to achieve about $4.5 billion of overall net cost savings from its ongoing expense realignment program by the end of this year.

Price: 24.49, Change: +0.96, Percent Change: +4.09