Pfizer Inc. (PFE, Financials), the pharmaceutical firm, said its second-quarter earnings topped Wall Street estimates and boosted its annual revenue guidance, as growth in its non-COVID portfolio compensated for a steep drop in Paxlovid sales.
Adjusted earnings of 77 cents per share were 9 cents over estimate. Revenue grew 2.6% year-over-year to $15.03 billion, nearly $640 million more than experts expected.
Sales up 1% operationally, helped by a 23% increase in cancer medicine Padcev, and a 19% increase in blood thinner Eliquis. Sales of Paxlovid decreased 95% when COVID-19 infections declined in major areas.
Pfizer also boosted its 2026 sales guidance to $60.5 billion to $62.5 billion. The company reaffirmed its adjusted earnings guidance of $2.80 to $3 per share.
Management also identified $2.5 billion in expected productivity savings for the 2027 to 2029 period. Those savings may help margins, but increased research, development and production expenses are still a problem.
The data show Pfizer's fundamental medicine portfolio is gaining importance as pandemic-related revenues continue to decline. Investors will next look to see if greater non-COVID sales and cost cuts will provide sustainable margin improvement.