Astrazeneca Q2 Earnings Call Highlights

Key Points

• Solid first-half performance: AstraZeneca reported revenue growth of 6% at constant exchange rates and 11% excluding generic-competition effects, while core EPS rose 11%. The company maintained its full-year outlook and reaffirmed its goal of reaching $80 billion in revenue by 2030.
• Oncology remained the main growth driver: Oncology revenue increased 15% to $14.1 billion, led by CALQUENCE, Enhertu and Imfinzi. AstraZeneca also reported positive Phase III results for soniV in advanced gastric cancer and Imfinzi plus enfortumab vedotin in bladder cancer.
• Pipeline progress comes with mixed results: The company began Phase III trials for obesity and diabetes drug candidate elecoglipron after positive Phase IIb data, but Wainua failed to meet its Phase III cardiovascular endpoint. Biopharmaceutical revenue declined 5% as Farxiga and other products faced generic competition, while rare-disease revenue grew 11%.

Astrazeneca NYSE: AZN reported first-half 2026 revenue growth of 6% at constant exchange rates, or 11% excluding the effects of generic competition on Farxiga and Brilinta, while core earnings per share increased 11%. The company reiterated its full-year outlook and said it remains confident in its goal of reaching $80 billion in revenue by 2030.

Chief Executive Officer Pascal Soriot said the first-half performance reflected demand for the company’s innovative medicines and the breadth of its portfolio across oncology, biopharmaceuticals and rare disease. AstraZeneca recorded positive results from six key Phase III programs during the period, including three new molecular entities, and received 30 major-market approvals.

The company’s overall revenue growth was supported by oncology and rare disease, which both posted double-digit growth. Growth was also strong in the U.S., Europe and emerging markets outside China. China was affected by volume-based procurement, though management said recent additions to the National Reimbursement Drug List and new approvals could support future growth.

Financial outlook maintained

Chief Financial Officer Aradhana Sarin said alliance revenue rose 29% in the first half, reflecting higher profit shares from partnered medicines including Enhertu, DARZALEX and Tezspire. Core gross margin was 83%, while core R&D and selling, general and administrative expenses each increased 6% as AstraZeneca continued to invest in its pipeline and product launches.

The company initiated a comprehensive Phase III program for oral GLP-1 medicine elecoglipron in obesity and type 2 diabetes after positive Phase IIb data. It also increased commercial spending following the U.S. launch of BAXFENDY for hypertension and ahead of a potential launch of tozorakimab in chronic obstructive pulmonary disease.

• First-half operating cash flow was $1.2 billion, lower than the prior-year period, partly due to a LYNPARZA milestone received in the first quarter of 2025 and working-capital effects related to Farxiga’s U.S. loss of exclusivity.
• Capital expenditures totaled $1.5 billion, including investment in an antibody-drug conjugate manufacturing facility in Singapore.
• Deal-related payments were $3.3 billion, including a $1.2 billion upfront payment related to a CSPC collaboration.
• Net debt increased by about $3.5 billion during the first half, reflecting dividend and deal payments.

AstraZeneca maintained its forecast for full-year revenue to grow by a mid-to-high single-digit percentage and for core EPS to rise by a low double-digit percentage at constant exchange rates.

Oncology growth led by CALQUENCE, Enhertu and Imfinzi

Oncology revenue rose 15% in the first half to $14.1 billion, with growth of 18% in the U.S. and 16% in Europe. CALQUENCE revenue grew 16% in the second quarter to surpass $1 billion in quarterly sales for the first time. TAGRISSO revenue rose 6% to $1.9 billion, supported by double-digit U.S. growth and expanding use of combination regimens.

Enhertu revenue increased 31% to $888 million in the quarter, while Imfinzi and Imjudo combined grew 25%. Truqap revenue rose 37% to $233 million, and Datroway generated $55 million as adoption increased in later-line EGFR-mutated lung cancer.

The company also announced positive Phase III results for its wholly owned CLDN18.2-targeted antibody-drug conjugate sonesitatug vedotin, or soniV, in previously treated advanced gastric cancer. Management said the CLARITY-Gastric01 trial met its overall-survival primary endpoint in patients who had received at least two prior therapies. The trial showed a progression-free-survival trend that did not reach statistical significance.

Soriot said AstraZeneca now estimates soniV could generate peak-year revenue of $3 billion to $5 billion. The company also reported that the Phase III VOLGA study showed Imfinzi plus enfortumab vedotin significantly improved event-free survival and overall survival in cisplatin-ineligible patients with muscle-invasive bladder cancer.

Biopharmaceutical transition and pipeline progress

Biopharmaceutical revenue declined 5% in the first half to $11.2 billion, as generic competition and loss of exclusivity for Farxiga, Brilinta and roxadustat outweighed respiratory portfolio growth. Farxiga revenue fell 90% in the second quarter to $1.8 billion following U.S. generic entry, as well as pressures in other markets and China.

Respiratory and immunology revenue increased 11% during the quarter. Tezspire grew 45% to $390 million, Fasenra rose 13% to $570 million, and Breztri increased 20% to $346 million. BAXFENDY was approved and launched in the U.S. in May, with management expecting access to broaden over coming quarters.

However, the Phase III CARDIO-TTRansform study of Wainua in transthyretin-mediated amyloid cardiomyopathy did not meet its primary endpoint. Sharon Barr, executive vice president of BioPharmaceuticals R&D, said adding Wainua to standard care did not produce a statistically significant improvement in cardiovascular mortality and recurrent cardiovascular events. AstraZeneca and Ionis plan to further analyze the data.

Management highlighted positive Phase IIb results for elecoglipron, which showed weight loss of up to 11.8% at 36 weeks in the VISTA trial and HbA1c reductions of up to 1.9% at 26 weeks in SOLSTICE. The company has begun Phase III trials in obesity and diabetes and plans an outcomes program in heart failure with preserved ejection fraction and chronic kidney disease.

Rare disease expansion and long-term targets

Rare disease revenue rose 11% in the first half to $4.9 billion. Ultomiris grew 12% in the second quarter, while Strensiq increased 36%. AstraZeneca is progressing regulatory filings for efzimfotase alfa in hypophosphatasia, which management said could have peak revenue potential of $3 billion to $5 billion.

The company said it has 25 key Phase III readouts planned over the next 18 months, including pivotal data for six new molecular entities in 2027. Soriot said the company’s $80 billion 2030 target is risk-adjusted and based on a diversified portfolio rather than a single product. He added that AstraZeneca does not need additional business development transactions to achieve its post-2030 growth plans, though it may continue to pursue such deals.

About Astrazeneca (NYSE:AZN)

AstraZeneca plc is a global biopharmaceutical company headquartered in Cambridge, England. Formed through the 1999 merger of Sweden’s Astra AB and the UK’s Zeneca Group, the company researches, develops, manufactures and commercializes prescription medicines across a range of therapeutic areas. AstraZeneca positions itself as R&D-driven, investing in discovery science, clinical development and regulatory processes to bring new therapies to market.

The company’s commercial portfolio and late-stage pipeline emphasize oncology, cardiovascular, renal and metabolic (CVRM) diseases, and respiratory and immunology.

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