AstraZeneca PLC Ordinary Shares
AZN · NYSE
Dec 2026
Next quarter
Expected to report Feb 9, 2027 — estimated from last year’s reporting date.
Consensus is $2.31 EPS for Dec 2026 across 3 estimates, ranging $2.25 to $2.43.
AZN Sep 2026
- 7.31%
- $2.60
- $2.79
- —
- —
Highlights
- EPS beat Reported EPS of 2.79 exceeded consensus of 2.6 by 7.31%; nine-month core EPS rose 14%.
- Broad revenue growth Nine-month total revenue increased 7%, or 12% excluding Farxiga and Brilinta; product revenue rose 6% and alliance revenue 32%.
- Pipeline delivery AstraZeneca reported positive results from 12 Phase III programs and first approvals for four new medicines since its February full-year results; the readouts represent more than $10 billion of non-risk-adjusted peak-year sales potential.
- Oncology strength Oncology revenue grew 16% in the first nine months to $21.9 billion and 17% in Q3; Tagrisso exceeded $2 billion in quarterly revenue for the first time, up 12% year over year.
- Business mix Rare disease revenue rose 11% in the first nine months to $7.5 billion, while Q3 Biopharmaceuticals revenue fell 6% to $5.6 billion as respiratory and immunology growth partly offset CVRM declines.
- 2027 catalysts Management expects more than 20 key Phase III readouts in 2027, including pivotal data for nine potential new medicines, with over $20 billion in aggregate non-risk-adjusted peak-year revenue potential.
- Restructuring and cash The new three-year Reshaping for Sustainable Growth program targets up to $2 billion of one-time costs and $1.5 billion of annualized pretax benefits, which are intended to be reinvested; nine-month operating cash flow was $10.9 billion.
- Guidance maintained Full-year expectations remain mid- to high-single-digit total revenue growth and low-double-digit core EPS growth; core gross margin is expected to be stable to slightly higher than in 2025.
Analysis
AstraZeneca delivered an EPS beat, with reported EPS of 2.79 versus consensus of 2.6, a 7.31% surprise. For the first nine months, total revenue grew 7% and core EPS rose 14%; revenue growth would have been 12% excluding Farxiga and Brilinta. The quarter’s mix showed both the breadth of the portfolio and the drag from exclusivity losses: oncology grew 17% year over year in Q3, while Biopharmaceuticals revenue declined 6% to $5.6 billion. The transcript does not provide a companywide Q3 revenue comparison or sequential total-revenue figure; Tagrisso did increase 8% sequentially, as well as 12% year over year.
The other defining feature was pipeline progress. AstraZeneca reported 12 positive Phase III programs and four first approvals since February, with management estimating more than $10 billion in non-risk-adjusted peak-year sales potential from the positive readouts. It sees more than 20 key Phase III readouts in 2027 and over $20 billion of aggregate non-risk-adjusted peak-year potential. Management reiterated full-year revenue and core EPS growth guidance, while announcing a restructuring program whose savings are intended to fund further investment. Operating cash flow was $10.9 billion for the nine months, lower than a year ago due partly to the prior-year Lynparza milestone and working-capital effects from Farxiga’s U.S. loss of exclusivity.
Financial performance and guidance
- Nine-month growth Total revenue increased 7% and product revenue 6%; alliance revenue rose 32%, supported by partner-recorded sales of Enhertu, Datroway and Tezspire. Excluding Farxiga and Brilinta, total revenue grew 12%.
- Core profitability Core EPS increased 14% in the first nine months. Core gross margin was 83%; R&D expense rose 5% and represented 23% of revenue, while SG&A increased 4% and total core operating expenses rose 5%.
- Full-year outlook The company reiterated expectations for mid- to high-single-digit total revenue growth and low-double-digit core EPS growth. It expects full-year core gross margin to be stable to slightly higher than in 2025, with R&D at the upper end of the low-20s percentage range.
- Cash and investment Operating cash flow was $10.9 billion, below the year-ago period because that period included a Lynparza milestone and because Farxiga-related U.S. working-capital effects are persisting. Nine-month capital expenditure was $2.3 billion; full-year CapEx is now expected to rise by a low-teens percentage versus 2025.
- Debt and financing costs Net debt-to-EBITDA was 1.2x. Management expects Q4 finance expense to rise sequentially, including costs for recently issued bonds, the new Kendall Square R&D center and a one-time premium related to the Summit investment.
Oncology portfolio
- Franchise growth Oncology revenue grew 16% in the first nine months to $21.9 billion and 17% in Q3. The U.S. grew 18% year over year in the nine-month period, with Europe and emerging markets delivering mid-teens growth.
- Tagrisso and immunotherapy Tagrisso generated $2.1 billion in Q3, up 12% year over year and 8% sequentially, with demand across indications and regions. Imfinzi and Imjudo grew 26% and 25%, respectively, and combined revenue exceeded $2 billion for the first time.
- Other established brands Calquence revenue rose 16% to $1.1 billion in Q3. Enhertu increased 35% to $969 million, with U.S. growth of nearly 50%. Truqap rose 9% to $210 million; Datroway reached $78 million.
- New launches and evidence Etcamah began its U.S. launch in September, with early interest in ESR1 testing; Zegfrovy recorded its first revenue and launched in the U.S. during October. Management pointed to positive trial data and additional indications as supports for continued franchise growth.
Pipeline catalysts
- 2026 progress Since February, AstraZeneca reported positive results from 12 Phase III programs and first approvals for four medicines, bringing approved new molecular entities to 14 against its goal of 20 by 2030. Management puts the positive readouts’ non-risk-adjusted peak-year sales potential above $10 billion.
- 2027 readouts More than 20 key Phase III readouts are planned, including pivotal data for nine potential new medicines. Management estimates aggregate non-risk-adjusted peak-year sales potential above $20 billion, while noting these are not risk-adjusted forecasts.
- Selected oncology data SAFFRON showed a 32% reduction in risk of death when Orpathys was added to Tagrisso after progression in MET-altered disease. In CLARITY-Gastric01, sone-ve reduced the risk of death by 53% in third-line-and-later patients and doubled median overall survival from five to 10 months.
- Other late-stage opportunities Tozorakimab showed reduced COPD exacerbations across eosinophil levels, including a 23% reduction below 150 cells per microliter. AstraZeneca also highlighted Phase III programs in weight management, cell therapy and immuno-oncology bispecifics.
Therapy-area mix
- Rare disease Nine-month revenue grew 11% to $7.5 billion, with double-digit growth across key medicines. In Q3, Ultomiris grew 19% and Strensiq 34%; Soliris continued to decline as patients converted to Ultomiris and biosimilar competition continued.
- Respiratory and immunology Q3 R&I revenue rose 11% to $2.5 billion. Tezspire increased 51% to $429 million, Fasenra 14% to $602 million, Breztri 14% to $374 million and Saphnelo 32% to $235 million. Symbicort declined 11% to $660 million, including a 25% U.S. decline after a second generic competitor entered.
- CVRM headwinds Q3 CVRM revenue fell 18% to $2.6 billion. Farxiga declined 23% to $1.6 billion, reflecting U.S. loss of exclusivity and China volume-based procurement; management said demand remained strong in Europe and established Rest of World.
- China Growth remains affected by volume-based procurement. Management said China grew 13% excluding that impact in its opening remarks, and later cited approximately 15% growth excluding the effects for Farxiga, roxadustat and Lynparza.
Resource reshaping
- Program targets The new three-year Reshaping for Sustainable Growth program is expected to incur up to $2 billion in one-time restructuring costs and deliver $1.5 billion in annualized pretax run-rate benefits. Activities are expected to be completed by the end of 2029.
- Reinvestment intent Management said the savings will be reinvested in the business, particularly the pipeline, while also creating capacity to expand capabilities without growing the cost base as much.
- Balance-sheet context Deal-related payments totaled $4.3 billion in the first nine months, including a $600 million upfront payment for the Dizal collaboration. The $2 billion Summit equity investment closed in October and is separate from that deal-payment figure.
