Pfizer (NYSE: PFE) beat earnings expectations decisively this morning, posting adjusted EPS of $0.87 against a $0.64 consensus and revenue of $16.65 billion versus $16.50 billion expected. The stock gapped up roughly 12.6% in pre-market trading, reflecting strong investor validation of both the beat and the company’s reaffirmed full-year guidance paired with a raised EPS outlook.
Non-COVID Portfolio Shows Real Traction
The headline beat masks a more nuanced story. While adjusted EPS crushed expectations, net income fell 20.84% year over year to $3.54 billion, and reported revenue declined 5.92% to $16.65 billion from $17.70 billion in Q3 2024. That’s the ongoing reality of post-pandemic normalization. What matters more is what’s happening in the core business.
Non-COVID revenue grew 4% operationally, driven by strength in key franchises. Eliquis, the anticoagulant, surged 22% operationally. Vyndaqel, used for cardiac amyloidosis, climbed 7%. These are the growth engines that matter going forward. Paxlovid, by contrast, collapsed 55% operationally, and Comirnaty vaccine revenue fell 20%. That’s expected. The real test is whether the base business can sustain momentum as legacy COVID products fade.
Guidance Holds, EPS Raised
Management reaffirmed full-year 2025 revenue guidance of $61.0 to $64.0 billion but raised EPS guidance to $3.00 to $3.15 from prior guidance. That’s a meaningful signal. It suggests the company is confident in both execution and the benefit of cost discipline flowing through to the bottom line. CEO Albert Bourla highlighted a landmark agreement with the U.S. Government that “provides greater clarity for our business,” removing a significant overhang for investors.
Bourla also referenced recent strategic actions strengthening opportunities in high-growth markets. That’s a reference to the proposed Metsepa acquisition, which positions Pfizer more aggressively in the obesity treatment space. These moves signal a company actively reshaping its portfolio rather than coasting on legacy revenue.
Key Figures
Adjusted EPS: $0.87 (vs. $0.64 expected); beat by $0.23, or 36%
Revenue: $16.65B (vs. $16.50B expected); beat by $150M
Net Income: $3.54B; down 20.84% year over year
Non-COVID Revenue Growth: Up 4% operationally
Eliquis Growth: Up 22% operationally
Full-Year 2025 EPS Guidance: $3.00 to $3.15 (raised)
The 36% EPS beat stands out. It’s the sixth consecutive quarterly beat for Pfizer, with an average surprise of 47% over that stretch. That consistency matters. It shows management is executing better than the street anticipates, quarter after quarter.
The Valuation Picture
Pfizer trades at a forward P/E of 8.67, well below historical averages for large pharma. That’s cheap relative to the company’s growth trajectory. The stock carries a 6.9% dividend yield, with an ex-dividend date of November 7. The combination of low valuation multiple, rising EPS guidance, and a substantial yield reflects how the market has priced in post-COVID headwinds.
Institutional ownership sits at 65.47%, and the stock carries a beta of 0.465, making it a defensive holding. Analyst consensus leans toward Hold, though price targets average $28.75, implying 15.60% potential upside from current levels.
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