-- Pfizer's (PFE) first-quarter results surpassed analysts' estimates as robust demand across its key brands offset weakening sales of its COVID-19 products, and the company reaffirmed its full-year outlook.
Adjusted per-share earnings fell to $0.75 from $0.92 a year earlier, exceeding the FactSet consensus of $0.72. Revenue rose 5% to $14.45 billion, while analysts expected $13.84 billion.
The pharmaceutical giant continues to expect full-year adjusted EPS of $2.80 to $3 on revenue of $59.5 billion to $62.5 billion. Analysts project non-GAAP EPS of $2.96 on sales of $61.38 billion. Pfizer reported non-GAAP EPS of $3.22 on sales of $62.58 billion in 2025.
"Excluding COVID products, the underlying business delivered approximately 7% operational revenue growth, reflecting solid demand across key brands and continued strong commercial execution," Chief Financial Officer David Denton said in prepared remarks on an earnings conference call.
First-quarter earnings also exceeded Pfizer's expectations, with Denton attributing the performance to cost management.
Revenue in Pfizer's biopharma segment rose 5% to $14.16 billion, with increases in oncology, specialty care, and hospital and biosimilars offsetting the decline in primary care.
"We saw solid contributions across our product portfolio, primarily driven by Padcev, Eliquis, Nurtec, Lorbrena and the Vyndaqel family -- each reflecting focused execution in our key therapeutic areas," Denton said.
Pfizer shares eased 0.3% in Tuesday trading. The stock has gained 5.7% this year.
CEO Albert Bourla said Pfizer's growth profile and cash flow outlook after 2028 have improved due to two "significant" legal developments.
"Our recent settlement agreements resolving infringement of patents related to Vyndamax have the potential to change the growth profile of the company significantly post 2028," Bourla said, referring to Pfizer's heart medication. "This gives us greater confidence that, starting in 2029, we will enter a five-year period of high single-digit revenue (compound annual growth rate)."
The recent Belgian court ruling on Comirnaty contracts in the EU is seen as a positive for future EPS and cash flow, Bourla said.
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