AstraZeneca beats Q2 estimates as oncology sales offset generic pressure

AstraZeneca posted Q2 core earnings of $2.63 a share, beating the $2.50 consensus, as cancer drug demand offset generic pressure on older products.

"The results reflect the strength of our pipeline and the breadth of our portfolio across oncology, biopharmaceuticals and rare disease," Chief Executive Officer Pascal Soriot said in a statement. The company has more than 20 high-value readouts due over the next 18 months, he added.

Total revenue rose 5% at constant currency to $15.38 billion, topping the $15.31 billion analyst estimate. Net profit climbed 2% to $2.51 billion. Oncology revenue increased 15% to $14.1 billion in the first half, led by Imfinzi, which rose 27% to $1.85 billion, and Calquence, which surpassed $1 billion in quarterly sales for the first time. Tagrisso generated $1.94 billion, up 6%, though that missed the $2.01 billion consensus. Truqap rose 37% to $233 million, and Datroway, partnered with Daiichi Sankyo, generated $55 million.

The CVRM segment faced headwinds as Farxiga sales fell 19% to $1.80 billion following US generic entry and China volume-based procurement pressures. Brilinta plunged 63% to $80 million after generic launches in Europe and the US. In respiratory and immunology, Tezspire jumped 45% to $390 million, Fasenra rose 13% to $570 million, and Breztri gained 20% to $346 million. Rare disease revenue rose 11% in the first half, with Ultomiris up 12% to $1.31 billion.

AstraZeneca maintained its 2026 guidance for mid-to-high single-digit revenue growth and low double-digit core EPS growth at constant currency. The company reaffirmed its $80 billion revenue target for 2030. Soriot said the company has begun Phase III trials for elecoglipron, an oral GLP-1 weight-loss pill, and raised the peak sales estimate for experimental respiratory treatment tozorakimab to above $5 billion. The results come after investor confidence was rattled earlier this month when nerve drug Wainua failed to meet its primary endpoint in a late-stage cardiomyopathy trial. Shares rose 1.7% in London trading but remain down about 7% for the year.

The earnings beat signals that AstraZeneca's newer oncology and rare disease drugs are gaining enough traction to offset the decline of mature products facing patent expiries. Investors will watch upcoming Phase III readouts for six new molecular entities in 2027, including pivotal data on the GLP-1 candidate elecoglipron.

This article is for informational purposes only and does not constitute investment advice.