AstraZeneca (NYSE:AZN) Announces Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Key Points

• AstraZeneca beat quarterly expectations: EPS was $2.79 versus the $2.60 consensus, while revenue rose 6.5% year over year to $16.21 billion, slightly exceeding estimates.
• Oncology and pipeline progress drove growth: Oncology revenue increased 16% year to date, supported by strong Tagrisso, Imfinzi/Imjudo, Calquence, and Enhertu sales. Management also highlighted 12 positive Phase III readouts and more than $20 billion in potential peak sales from expected 2027 trial results.
• Risks and cost reductions remain in focus: AstraZeneca reaffirmed its 2026 guidance and is targeting $1.5 billion in annual savings through a restructuring program, but faces up to $2 billion in restructuring costs, loss-of-exclusivity pressure on products such as Farxiga and Brilinta, and rising expenses.

AstraZeneca (NYSE:AZN - Get Free Report) issued its quarterly earnings results on Friday. The company reported $2.79 EPS for the quarter, topping the consensus estimate of $2.60 by $0.19, FiscalAI reports. AstraZeneca had a net margin of 17.02% and a return on equity of 31.45%. The firm had revenue of $16.21 billion for the quarter, compared to analysts' expectations of $16 billion. During the same period in the previous year, the business earned $2.38 earnings per share. AstraZeneca's revenue for the quarter was up 6.5% compared to the same quarter last year.

Here are the key takeaways from AstraZeneca's conference call:

• Strong underlying growth continued: nine-month revenue rose 7% and core EPS increased 14%, while revenue excluding Farxiga and Brilinta grew 12%. Oncology, rare disease, and respiratory/immunology delivered double-digit growth, offsetting expected loss-of-exclusivity pressures.
• AstraZeneca reported 12 positive Phase III readouts and four new-medicine approvals so far in 2026, supporting confidence in its $80 billion 2030 revenue ambition. Management highlighted more than 20 major Phase III readouts in 2027, representing over $20 billion in non-risk-adjusted peak-sales potential.
• Oncology momentum remained especially strong, with revenue up 16% year to date; Tagrisso exceeded $2 billion in quarterly sales, while Imfinzi/Imjudo, Calquence, and Enhertu posted robust growth. Positive data for Tagrisso combinations, Sone-Ve, Imfinzi-based regimens, and Enhertu could support further franchise expansion.
• AstraZeneca launched a three-year “Reshaping for Sustainable Growth” program involving up to $2 billion in restructuring costs, although it targets $1.5 billion of annualized pre-tax savings for reinvestment. Management also flagged ongoing headwinds from Farxiga, Brilinta, and SYMBICORT loss of exclusivity, China volume-based procurement, higher fourth-quarter expenses, and increased capital expenditure.

AstraZeneca Stock Up 6.9%

NYSE:AZN traded up $12.09 during trading hours on Friday, hitting $186.49. 5,464,384 shares of the company's stock traded hands, compared to its average volume of 2,974,251. AstraZeneca has a twelve month low of $153.41 and a twelve month high of $212.71. The firm has a market cap of $289.23 billion, a P/E ratio of 27.88, a P/E/G ratio of 1.35 and a beta of 0.27. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.67 and a current ratio of 0.89. The stock's fifty day moving average price is $164.48 and its two-hundred day moving average price is $180.21.

More AstraZeneca News

Here are the key news stories impacting AstraZeneca this week:

• Positive Sentiment: Q3 earnings beat expectations: Core EPS reached $2.79 versus the roughly $2.60 analyst consensus, while revenue increased about 7% year over year to $16.21 billion, topping estimates near $16 billion. Net profit rose to $3.12 billion from $2.54 billion a year earlier. AstraZeneca Stock Rallies on Q3 Earnings Beat
• Positive Sentiment: Oncology remains the key growth engine: Cancer-drug sales rose 17%, helping offset generic competition and declining sales from mature medicines such as Farxiga. The performance suggests AstraZeneca’s newer products are mitigating patent-cliff pressure. AZN Q3 Earnings Beat Estimates
• Positive Sentiment: Pipeline catalysts support the longer-term story: Management highlighted more than $20 billion of potential from 2027 drug-trial readouts, while the company reported 12 positive Phase 3 readouts. These catalysts could expand AstraZeneca’s growth prospects beyond its current portfolio. AstraZeneca CEO Sees Over $20B Potential
• Positive Sentiment: Guidance was reaffirmed: AstraZeneca maintained its fiscal 2026 outlook for mid-to-high single-digit revenue growth and low-double-digit core EPS growth at constant exchange rates. The company also targeted $1.5 billion in annual savings, potentially supporting margins and earnings. AstraZeneca Reports Q3 Revenue Growth
• Neutral Sentiment: Analyst views remain mixed: Guggenheim maintained a Buy rating, while Deutsche Bank retained Hold and Erste Group Bank lowered its FY2026 EPS estimate, indicating some valuation and execution concerns remain. Guggenheim Maintains Buy Rating
• Negative Sentiment: Generic competition remains a headwind: Farxiga and other mature products face pricing and volume pressure, which could limit growth if newer oncology and pipeline medicines do not continue to scale. AstraZeneca Holds Guidance

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Zacks Research raised shares of AstraZeneca from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 13th. Deutsche Bank Aktiengesellschaft upgraded shares of AstraZeneca from a "sell" rating to a "hold" rating in a research report on Tuesday, September 15th. Royal Bank Of Canada assumed coverage on AstraZeneca in a research note on Tuesday, September 8th. They set an "outperform" rating for the company. Nordea Equity Research upgraded AstraZeneca from a "sell" rating to a "buy" rating in a report on Tuesday, October 13th. Finally, HSBC lowered AstraZeneca from a "buy" rating to a "hold" rating in a research report on Monday, July 13th. Sixteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $206.67.

About AstraZeneca

AstraZeneca plc is a global, science-led biopharmaceutical company headquartered in Cambridge, United Kingdom. The company discovers, develops and commercializes prescription medicines, with a focus on oncology, biopharmaceuticals and rare diseases. Its research and commercial operations serve patients and healthcare systems across more than 100 countries.

AstraZeneca’s portfolio includes medicines for cancer, respiratory and immune-mediated conditions, cardiovascular, renal and metabolic diseases, and rare disorders.

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