Pfizer delivered impressive second-quarter results that exceeded Wall Street expectations, with adjusted profit of 77 cents per share surpassing consensus projections of 68 cents per share. According to reports from CNBC, the pharmaceutical company reported quarterly revenues of $15.03 billion, easily surpassing analyst projections of $14.40 billion. The strong performance was primarily driven by robust demand for the blood thinner Eliquis, which saw a 19% operational increase to $2.43 billion in the quarter, significantly above analyst estimates of $1.93 billion. As reported by CNBC, sales of cancer therapy Padcev also rose 23% to $667 million, above expectations of about $634 million, helping offset lower demand for COVID products. The company also reported a net loss of four cents per share for the quarter due to charges related to drug acquisitions and a $4.3 billion impairment on experimental lung cancer therapy sigvotatug vedotin. Following the strong results, shares were up 1.8% to $25.50 in premarket trading.
Operational revenues increased by 5% year over year when excluding contributions from the company's dwindling COVID-19 product range including Comirnaty and Paxlovid. As reported by CNBC, Pfizer demonstrated strong development in non-COVID categories with 2% growth in its biopharma business and 7% growth in Pfizer CentreOne, the company's contract development and manufacturing organization. The company has revised its full-year revenue projection upward from $59.5 billion to $60.5 billion to $62.5 billion, indicating confidence in sustained growth momentum despite the challenging near-term environment. According to CNBC, the $1.5 billion upside from non-COVID products was tempered by a reduction in the company's forecast for COVID-19 treatments, which Pfizer now pegs at roughly $4 billion for the year, compared with a prior expectation of around $5 billion. The declines were driven by lower Covid infections and a narrower recommendation for who should get Covid shots.
Pfizer has significantly increased its efficiency initiatives, announcing plans for an additional $2.5 billion in cost cuts from 2027 through 2029, comprising $1 billion from its ongoing cost realignment program and $1.5 billion from the next phase of its manufacturing optimization program. According to CNBC, the company reiterated its full-year 2026 adjusted diluted EPS projection of $2.80 to $3.00 per share despite a $4.3 billion quarterly loss compared with a profit of $2.91 billion a year earlier. Management expects higher growth after 2028, as the company plans for impending patent expirations on older portfolio blockbusters while overseeing a major shift away from pandemic reliance toward newer medications. Chief Executive Albert Bourla noted that "Pfizer has placed the business development bets already," adding that the company would now focus on smaller bolt-on deals across therapeutic areas with approximately $6 billion of remaining dealmaking capacity.
RBC Capital analyst Trung Huynh noted that the earnings beat reflected broad-based strength across the portfolio, but emphasized that Pfizer must deliver on key catalysts through 2026 to be viewed again as a growth company rather than primarily as a restructuring story. Late-stage data for experimental cancer drug mevrometostat, along with readouts from Metsera's amylin-based obesity drug, are among the key near-term catalysts investors are watching. According to CNBC, Pfizer Chairman and CEO Albert Bourla said the company's obesity program is advancing "with meaningful momentum" and that its oncology portfolio "remains a source of strength." While investors monitor Pfizer's $10 billion acquisition of Metsera to potentially establish a foothold in the fast-growing obesity market that analysts see topping $150 billion annually in the coming decade, the company is focusing on smaller bolt-on deals. The company's once-monthly weight-loss injection berobenatide has produced up to 12.3% weight loss in patients without diabetes in trials, though it raised tolerability questions. Meanwhile, Pfizer is conducting an internal and external search for a permanent replacement for departing CFO Dave Denton, who is set to leave on August 15.
