Pfizer Beats Q3 Estimates, Boosts Profit Outlook Despite Sales Slip

Pfizer (NYSE: PFE) released its Q3 numbers, surpassing analyst expectations on earnings and revenue, while lifting its full-year profit forecast. This comes even with revenue down due to dwindling demand for its Covid-related products.

The drug giant reported adjusted earnings per share of 87 cents, well above the 63 cents predicted, alongside revenues of $16.65 billion, edging past estimates by a slim margin. Despite falling sales, Pfizer cited cost-saving measures that effectively bolstered its bottom line.

Management now anticipates the year's adjusted profit per share to land between $3.00 and $3.15, revising upward from the previous range of $2.90 to $3.10. Maintaining revenue guidance at $61 billion to $64 billion reflects confidence in the company's diversified portfolio beyond the pandemic catalysts.

The company acknowledged a $1.35 billion one-time charge related to a licensing deal with the Chinese biotech 3SBio, which knocked roughly 20 cents off earnings per share. Additionally, ongoing trade tariffs from President Donald Trump's administration on imports from China, Canada, and Mexico are factored into the forecast - with Pfizer exempted from pharmaceutical-specific tariffs due to a new pricing agreement.

Covid product sales remain a drag. Paxlovid antiviral pill revenue tumbled 55% year over year to $1.23 billion, missing analyst expectations, while the Comirnaty vaccine downloaded 19% to $1.15 billion. Reduced CDC recommendations and lower infection rates curtailed demand.

In contrast, other drugs performed strongly. The anticoagulant Eliquis, co-commercialized with Bristol Myers Squibb, surged 25% to $2.02 billion, beating forecasts. Pfizer's cardiac therapy Vyndaqel and migraine treatment Nurtec also exceeded sales estimates with $1.59 billion and $412 million respectively.

Longer term, Pfizer projects cutting $7.7 billion in costs by 2027, with a $4.5 billion reduction planned by the end of 2025. The firm is investing $70 billion into reshoring drug manufacturing and research in the U.S., part of its deal with President Trump to avoid threatened drug tariff penalties.

On the merger front, Pfizer is actively pursuing growth through acquisitions, locked in a tight bidding contest with Novo Nordisk for Metsera. The company recently filed a second lawsuit accusing Novo Nordisk of anticompetitive tactics in the race for the obesity biotech.

The stock has been under pressure this year, down about 7%, reflecting both the challenges of transitioning beyond Covid products and fierce competition in emerging therapy areas.

It's a case study in balancing slipping pandemic sales with cost discipline and portfolio expansion. Whether Pfizer's strategy can fully offset the lost Covid windfall remains to be seen.