Pfizer, Merck Beat Estimates on Eliquis, Keytruda Strength

Pfizer reported second-quarter results on Tuesday that exceeded Wall Street expectations, prompting the company to raise the lower end of its full-year revenue forecast even as it trimmed expectations for its Covid-related products. The pharmaceutical giant posted revenue of $15.03 billion, up 3 percent from a year earlier and ahead of analyst projections of $14.41 billion. Adjusted earnings per share came in at 77 cents, beating the 68 cents analysts had anticipated.

The company now projects full-year revenue between $60.5 billion and $62.5 billion, compared with its prior range of $59.5 billion to $62.5 billion. That outlook still points to sales that are essentially flat or slightly below the $62.6 billion recorded in 2025. Pfizer lowered its forecast for Covid products, including the vaccine and antiviral Paxlovid, to $4 billion from around $5 billion previously. It maintained its adjusted profit guidance of $2.80 to $3 per share.

Sales of the blood thinner Eliquis surged 19 percent to $2.43 billion, well above the $2.08 billion analysts expected. The targeted cancer drug Padcev also contributed to the quarter's gains. These non-Covid products added roughly $1.5 billion in revenue and helped offset declines in the pandemic portfolio. Pfizer recorded a net loss of $248 million, or 4 cents per share, compared with net income of $2.91 billion, or 51 cents per share, in the same period last year.

Shares of the company rose 1.8 percent to $25.50 in premarket trading. Pfizer has seen its stock fall more than 50 percent from its pandemic-era peak as demand for Covid treatments faded. Executives have pointed to a pipeline of newer medicines and the recent $10 billion acquisition of Metsera as ways to reduce dependence on older blockbusters and establish a foothold in the obesity market. The company has signaled it expects a return to stronger growth only after 2028.

The results arrive alongside earnings from other large drugmakers, including Merck, which reported revenue of $16.61 billion for the quarter, above expectations, driven largely by its cancer drug Keytruda. Merck raised its full-year revenue forecast on that strength while absorbing a charge tied to an acquisition. Both companies face investor scrutiny over how quickly they can shift away from legacy products amid pricing pressures and competition.

Pfizer's quarter highlights the uneven transition many large pharmaceutical firms are navigating. While select franchises like Eliquis delivered robust growth, the overall revenue picture remains constrained by the sharp drop in Covid sales. The modest upward revision to the annual target reflects incremental gains rather than a broad acceleration, leaving the firm reliant on acquisitions and late-stage pipeline successes to meet longer-term targets. Analysts will continue to watch uptake of newer assets and the impact of the Metsera deal as indicators of whether the company can stabilize its trajectory beyond the immediate post-pandemic adjustment period.