AstraZeneca PLC (LSE:AZN) reported a 7% increase in third-quarter revenue to $16.21 billion, supported by growth across its pharmaceutical portfolio, while reaffirming its full-year financial guidance.
The British pharmaceutical group recorded core earnings per share (EPS) of $2.79 for the three months ended 30 September 2026, representing a 17% increase at actual exchange rates and 19% growth at constant exchange rates.
For the first nine months of 2026, total revenue increased 8% to $46.88 billion, equivalent to 7% growth at constant exchange rates, while core EPS rose 14% to $8.00.
The company also highlighted continued progress across its drug development pipeline, including 12 positive Phase III programme readouts during the year to date.
Third-Quarter Revenue Reaches $16.21 Billion as Earnings Increase
AstraZeneca generated total revenue of $16.21 billion during the third quarter, up 7% year-on-year at both actual and constant exchange rates.
Product sales increased 5% to $15.07 billion, while alliance revenue rose 36% to $1.11 billion.
Reported EPS climbed 23% to $2.02, representing a 26% increase at constant exchange rates.
For the nine months ended September, product sales reached $43.96 billion, an increase of 7% at actual exchange rates and 5% at constant exchange rates.
Alliance revenue rose 33% to $2.81 billion, while reported EPS increased 10% to $5.62.
The company reported double-digit revenue growth at constant exchange rates across Oncology, Respiratory and Immunology, and Rare Disease.
These gains helped offset pressure from the loss of exclusivity for Farxiga and Brilinta, alongside the effects of volume-based procurement policies in China.
Core operating profit and core EPS both increased 14% at constant exchange rates during the nine-month period.
Drug Development Pipeline Delivers 12 Positive Phase III Readouts
AstraZeneca reported continued progress across its research and development portfolio, with 12 positive Phase III programme readouts during the first nine months of 2026.
The company also recorded 47 regulatory approvals in major markets since its fourth-quarter 2025 results, including initial approvals for four new medicines: Etcamah, Baxfendy, Klygefa and Amlypave.
First Phase III data were reported for three new molecular entities: tozorakimab, efzimfotase alfa and sonesitatug vedotin.
Chief Executive Officer Pascal Soriot commented:
“In the first nine months we saw strong commercial momentum with total revenue up 7% and Core EPS up 14%, driven by our diverse therapy areas and global presence. We have had approvals for four new medicines and reported 12 positive Phase III programme readouts with a collective peak year revenue potential well in excess of ten billion dollars. Our rich series of upcoming readouts in 2027 has a potential of more than twenty billion dollars.”
AstraZeneca currently has more than 180 projects in its development pipeline, with additional late-stage clinical results expected during 2027.
Summit Therapeutics Investment and AI Partnerships Expand Research Portfolio
In October, AstraZeneca completed a $2 billion equity investment in Summit Therapeutics, securing an interest equivalent to approximately 12% of its outstanding common stock, or 10.6% on a fully diluted basis.
The companies entered into clinical collaborations to evaluate combinations involving Summit’s cancer treatment ivonescimab and AstraZeneca medicines, including sonesitatug vedotin.
A further collaboration involving Daiichi Sankyo will investigate Datroway in combination with ivonescimab.
Separately, AstraZeneca entered into an artificial intelligence-based drug discovery agreement with insitro, targeting treatments for metabolic dysfunction-associated steatohepatitis and cardiomyopathies.
Under the agreement, insitro will receive $40 million upfront and could earn approximately $1.46 billion in development and commercial milestone payments, alongside potential royalties.
AstraZeneca also opened a new research and development centre in Kendall Square, Cambridge, Massachusetts, which is expected to accommodate nearly 2,000 researchers and scientists.
Restructuring Programme Targets $1.5 Billion in Annual Benefits
AstraZeneca announced a restructuring initiative called Reshaping for Sustainable Growth, designed to redirect resources towards its drug development pipeline and emerging technologies.
The programme is expected to involve up to $2 billion in one-time restructuring costs over three years.
Management anticipates annualised pre-tax benefits of approximately $1.5 billion, with the savings intended to be reinvested primarily in research and development.
The programme is expected to be substantially completed by the end of 2029.
The company also completed a licensing agreement with Dizal Pharmaceutical in August for Zegfrovy, a treatment approved in the United States and China for certain patients with non-small cell lung cancer.
AstraZeneca Maintains Full-Year Revenue and Earnings Guidance
AstraZeneca reaffirmed its financial expectations for 2026, forecasting total revenue growth of a mid-to-high single-digit percentage at constant exchange rates.
Core EPS is expected to increase by a low double-digit percentage, while the core tax rate is projected to remain between 18% and 22%.
Based on September exchange rates remaining unchanged for the final three months of 2026, the company expects a low single-digit positive currency impact on reported revenue growth, with core EPS growth broadly similar to its constant-currency performance.
The Board maintained its existing guidance, supported by commercial growth and progress across its development pipeline.
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