Pfizer reported adjusted earnings per share of $0.87 for the third quarter of 2025, beating the consensus estimate of $0.66. Revenue for the quarter was $16.7 billion, slightly above the consensus of $16.6 billion, but down 6% from the $17.7 billion reported in Q3 2024. The decline in earnings and revenue is largely attributable to lower sales of its COVID‑19 products, Comirnaty and Paxlovid, while the non‑COVID portfolio grew 4%.
The company’s cost‑improvement program is progressing as planned, with an expected $7.2 billion in net cost savings by the end of 2027. This initiative is contributing to operating margin expansion and supports the company’s ability to maintain profitability despite the decline in COVID product sales. R&D expenses fell 2% operationally compared with the prior year, reflecting a focus on pipeline optimization. No share repurchases were completed in 2025, and dividends continue to be paid to shareholders.
Pfizer reaffirmed its full‑year 2025 guidance, projecting adjusted diluted earnings per share of $3.00 to $3.15 and revenue of $61.0 to $64.0 billion. The guidance incorporates the impact of tariffs and reflects confidence in the company’s cost‑reduction program and non‑COVID product growth.
The company also announced its definitive agreement to acquire Metsera for approximately $4.9 billion. The deal includes potential milestone payments and a contingent value right, and it follows a competing bid from Novo Nordisk. The acquisition is intended to strengthen Pfizer’s position in the high‑growth obesity market. In addition, Pfizer entered into a historic agreement with the U.S. government to lower drug prices by aligning them with prices in other developed countries and by participating in a direct purchasing platform. This agreement provides greater clarity for Pfizer’s business and removes a significant overhang for investors.
CEO Albert Bourla highlighted the U.S. government agreement as a key development that clarifies Pfizer’s pricing strategy and emphasized the company’s strategic focus on the obesity market, noting that the Metsera acquisition could be a catalyst for future growth.
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