Pfizer on Tuesday reported third-quarter revenue and adjusted profit that blew past expectations as the company’s Covid vaccine and antiviral pill Paxlovid helped boost sales.

The pharmaceutical giant also hiked its full-year outlook and now expects to book adjusted earnings per share of $2.75 to $2.95, up from its previous guidance of 2.45 to $2.65 per share. 

Pfizer now expects revenue in a range of $61 billion to $64 billion, up from a previous revenue forecast of between $59.5 billion to $62.5 billion. That includes roughly $5 billion in expected revenue from its Covid vaccine and $5.5 billion from Paxlovid.

Here’s what the company reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $1.06 adjusted vs. 62 cents expected
• Revenue: $17.7 billion vs. $14.95 billion expected

The company booked third-quarter net income of $4.47 billion, or 78 cents per share. That compares with net loss of $2.38 billion, or 42 cents per share, during the same period a year ago. Excluding certain items, including restructuring charges and costs associated with intangible assets, the company posted earnings per share of $1.06 for the quarter.

Pfizer reported revenue of $17.7 billion for the third quarter, up 31% from the same period a year ago.

It is a critical quarterly report for Pfizer, which is cutting costs as it works to recover from the rapid decline of its Covid business and share price over the last two years. The drugmaker’s shares are trading at about half of its pandemic-era high, putting its market cap at roughly $163 billion. 

Pfizer is also grappling with a proxy battle waged by the activist investor Starboard Value, which has a roughly $1 billion stake in the pharmaceutical company. 

Starboard managing member Jeff Smith contends that Pfizer failed to capitalize on the windfall earned from its Covid products and, in the process, destroyed tens of billions of dollars in market value. Smith points to what he believes are management’s poor investments in research and development and hefty acquisitions that have yet to be fruitful for the struggling company. 

Smith is calling for a massive overhaul at Pfizer, claiming that the company needs to be more disciplined on its investments.

Meanwhile, Pfizer said previously it is on track to deliver at least $4 billion in savings by the end of the year. The company in May announced a multiyear plan to slash costs, with the first phase of the effort slated to deliver $1.5 billion in savings by 2027. 

Paxlovid brought in $2.7 billion in sales for the quarter, up from the $202 million it posted in the year-earlier period. 

That growth is mainly due to strong demand, particularly in the U.S. during a recent wave of the virus. It was also helped by a one-time contractual delivery of 1 million treatment courses of Paxlovid to the federal government’s national stockpile during the third quarter, which accounted for $442 million in revenue. 

Those results are higher than the $707.7 million in sales that analysts were expecting for Paxlovid, according to estimates compiled by StreetAccount.

The company’s Covid shot booked $1.42 billion in revenue, up 9% from the same period a year ago.

Analysts expected $1.04 billion in sales for the shot, according to StreetAccount.

This story is developing. Please check back for updates.