Pfizer’s third quarter results reflected ongoing challenges in its COVID-19 franchise, but management pointed to solid growth in non-COVID products and disciplined cost management as key drivers of performance. CEO Albert Bourla emphasized the company’s ability to deliver adjusted earnings above expectations, noting, “Our business is performing well, and we are raising the range of our adjusted diluted EPS guidance for full year 2025.” The quarter saw operational declines in legacy COVID-19 products, but new launches and established brands like Vyndaqel and Nurtec offset some of the softness, supported by ongoing productivity improvements and a focus on high-priority therapeutic areas.
Is now the time to buy PFE? Find out in our full research report (it’s free for active Edge members).
Pfizer (PFE) Q3 CY2025 Highlights:
- Revenue: $16.65 billion vs analyst estimates of $16.61 billion (5.9% year-on-year decline, in line)
- Adjusted EPS: $0.87 vs analyst estimates of $0.64 (37% beat)
- Adjusted EBITDA: $7.54 billion vs analyst estimates of $6.06 billion (45.3% margin, 24.5% beat)
- The company reconfirmed its revenue guidance for the full year of $62.5 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $3.08 at the midpoint, a 2.5% increase
- Operating Margin: 35.3%, up from 33% in the same quarter last year
- Organic Revenue fell 7% year on year vs analyst estimates of 3.2% declines (378.8 basis point miss)
- Market Capitalization: $138.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Pfizer’s Q3 Earnings Call
- Vamil Divan (Guggenheim Securities) asked about Vyndamax and Padcev’s market dynamics amid new competition and pricing pressures. Chief Commercial Officer Aamir Malik explained that Vyndamax remains market-leading but faces gross-to-net headwinds, while Padcev’s growth is expected to resume after inventory adjustments.
- David Risinger (Leerink Partners) questioned the legal process for the Metsera acquisition. CEO Albert Bourla emphasized ongoing legal proceedings and reiterated confidence in the transaction’s completion despite antitrust concerns.
- Asad Haider (Goldman Sachs) pressed for contingencies if Metsera does not close and for early color on 2026 guidance. CFO David Denton noted Pfizer’s continued business development focus and said full 2026 guidance would be provided later in the year.
- Geoffrey Meacham (Citibank) inquired about balancing manufacturing investments tied to U.S. government agreements with cost efficiency priorities. Denton responded that both objectives could be achieved in parallel and would be detailed in future guidance.
- Alexandria Hammond (Wolfe Research) asked about delays in the pivotal trial for the 25-valent pneumococcal program. Oncology Chief Chris Boshoff said alignment with the FDA and coordinating pediatric and adult studies contributed to the timing shift, with further updates expected next year.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will focus on (1) the pace of late-stage clinical trial readouts, especially in oncology and vaccines, (2) integration progress and early commercial performance of recently acquired Metsera and 3SBio assets, and (3) execution of cost management initiatives and their impact on margins. Progress on regulatory approvals and clarity on U.S. drug pricing policy will also be critical signposts for Pfizer’s long-term outlook.
Pfizer currently trades at $24.38, down from $24.69 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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