Pfizer Tops EPS Expectations in Q3 2025 Despite Revenue Decline

Pfizer Inc. (NYSE: PFE) has released its financial results for the third quarter of 2025, showcasing a robust earnings per share (EPS) performance. The company has also adjusted its full-year EPS guidance, reflecting a strategic focus on long-term growth and operational efficiency.

Pfizer’s Cost Management Helps Offset Lower COVID-19 Revenues

In the third quarter of 2025, Pfizer reported revenues of $16.7 billion, marking a 6% year-over-year decline. This decrease was primarily driven by a reduction in COVID-19 product revenues, including Paxlovid and Comirnaty, due to lower infection rates and a narrower vaccine recommendation in the U.S. Despite the decline, the company’s non-COVID portfolio experienced a 4% operational revenue growth, bolstered by products like Eliquis and the Vyndaqel family.

When comparing the actual performance against expectations, Pfizer’s reported diluted EPS stood at $0.62, falling short of the anticipated $0.66. However, the adjusted diluted EPS was reported at $0.87, exceeding the expected $0.66. This discrepancy highlights Pfizer’s effective cost management and strategic focus on high-demand areas, which offset the declines in COVID-related revenues.

Moreover, the operational revenue decline was mitigated by favorable foreign exchange impacts amounting to $203 million. The company’s strategic focus on non-COVID products and operational efficiency played a crucial role in delivering a stronger-than-expected adjusted EPS, showcasing its ability to adapt and thrive in a changing market landscape.

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Pfizer Raises Full-Year EPS Guidance, Targets $7.2B in Cost Savings

Looking ahead, Pfizer has reaffirmed its full-year 2025 revenue guidance, projecting a range between $61.0 and $64.0 billion. The company has also raised and narrowed its adjusted diluted EPS guidance to a range of $3.00 to $3.15, up from the previous range of $2.90 to $3.10. This upward revision reflects Pfizer’s confidence in its ongoing strategic initiatives and cost improvement efforts.

The updated EPS guidance considers Pfizer’s solid year-to-date performance and its progress in ongoing cost improvement initiatives. The company aims to achieve approximately $7.2 billion in overall anticipated net cost savings by the end of 2027, which will drive productivity gains and expand operating margins. Additionally, Pfizer’s effective tax rate on adjusted income has been revised to approximately 11.0%, down from the previous estimate of 13.0%, further supporting the improved EPS outlook.

Pfizer’s strategic focus on business development, including its proposed acquisition of Metsera and the historic agreement with the U.S. Government, provides longer-term business clarity and strengthens its position in high-growth markets. These initiatives are expected to enhance Pfizer’s capacity to deliver innovative solutions and maintain a competitive edge, aligning with its commitment to creating value for patients and shareholders alike.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.