Pfizer Stock Skyrockets: Here’s the Explosive Reason Why

Big Pharma just got a caffeine jolt—Pfizer shares are mooning today while analysts scramble to adjust price targets. Here's what lit the fuse.

The Catalyst No One Saw Coming

Rumors of a blockbuster drug approval sent institutional investors into a buying frenzy—because nothing moves needles (and stock prices) like FDA greenlights.

Short Sellers Left Holding IV Bags

The bears got steamrolled as PFE ripped through resistance levels. Turns out betting against a company sitting on $30B+ war chest wasn’t the smartest play.

The Cynic’s Corner

Of course, this rally conveniently distracts from their patent cliff worries—but hey, Wall Street’s memory only lasts until the next earnings call.

Starting to execute

In the second quarter, Pfizer reported adjusted diluted earnings per share of $0.78 on revenue of nearly $14.7 billion. Both numbers came in well above expectations, with diluted EPS $0.20 higher than consensus estimates, and revenue over $1 billion higher, according to FactSet estimates.

Image source: Getty Images.

Additionally, Pfizer reaffirmed its 2025 revenue guidance of $61 billion to $64 billion and raised its diluted EPS guidance range by $0.10 to $3.00 at the midpoint of its guidance.

Pfizer's stock is down close to 17% over the past year and 32% over the past five years. The company did extremely well during the COVID-19 pandemic, as one of the key vaccine makers. Since then, Pfizer has struggled to excite investors about the company's future.

"We have a lot of potential products that are in our pipeline that are going to read out," Pfizer CEO Albert Bourla told Barron's. "Putting those data in the hands of investors will give them comfort that we will have a meaningful growth trajectory into 2030 and beyond."

Challenges remain, but company is better positioned operationally

Pfizer, along with other large drugmakers, could potentially face a challenging environment. President Donald TRUMP wants to see lower drug costs for Americans, and he hasn't been afraid to make his intentions known. Trump recently threatened pharma tariffs that he said could reach 250%.

But operationally, Pfizer seems to be getting its act together. The stock only trades around 8 times forward earnings and has a dividend yield close to 7%, presenting an attractive entry point for long-term investors.