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AstraZeneca’s AZN third-quarter 2025 core earnings of $1.19 per American depositary share (ADS) beat the Zacks Consensus Estimate of $1.14 per share. Core earnings of $2.38 per share rose 14% year over year on a reported basis and 12% on a constant exchange rate (CER).
Total revenues of $15.19 billion rose 12% on a reported basis and 10% at CER, driven by higher product sales and alliance revenues from partnered medicines. Revenues beat the Zacks Consensus Estimate of $14.87 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
Product sales rose 9% to $14.37 billion, driven by strong underlying demand trends for its products across all therapy areas and across all major geographic regions.
Alliance revenues include royalties and profit share from partnered medicines, such as Enhertu and Tezspire, in geographies where its partner books product sales. Alliance revenues rose 44% to $815 million, driven by continued revenue growth from partnered medicines.
Here, we have discussed the total revenues of some of AZN’s key drugs by including Alliance revenues and Collaboration revenues within each revenue figure.
In Oncology, Tagrisso recorded revenues of $1.86 billion, up 10% year over year, on strong demand for all indications and in all regions, which more than offset the impact of Medicare Part D redesign in the United States and pricing pressure in some European markets. The company is seeing encouraging uptake in frontline EGFR-mutated NSCLC based on data from the FLAURA2 study. Favorable tender order timings also benefited growth in emerging markets. Tagrisso sales beat the Zacks Consensus Estimate of $1.85 billion and met our model estimate.
Lynparza's total revenues rose 5% to $837 million, driven by increased market share/demand growth for all approved indications, partially offset by the impact of Part D redesign in the United States and generic launches in China. Lynparza revenues also benefited from launches in breast and prostate cancers across Europe. The drug’s sales missed the Zacks Consensus Estimate of $850.0 million and our estimate of $844.3 million.
AstraZeneca markets Lynparza in partnership with Merck MRK. During the quarter, the company did not record any milestone payment from partner Merck related to the drug.
Imfinzi generated sales of $1.60 billion in the quarter, up 31%, driven by strong growth from launch in bladder and lung cancer indications, partially offset by mandatory price reductions in Japan. Imfinzi sales beat the Zacks Consensus Estimate of $1.53 billion and our estimate of $1.45 billion.
In Cardiovascular, Renal and Metabolism, Farxiga recorded product sales of $2.14 billion, up 8%, driven by continued demand growth across chronic kidney disease and heart failure indications and SGLT2 class growth. Farxiga sales beat the Zacks Consensus Estimate of $2.0 billion and our model estimate of $1.98 billion.
In Respiratory & Immunology, Symbicort sales rose 4% to $742 million as demand for an authorized generic made up for generic erosion in Europe and competition from triple therapy on the ICS/LABA class of medicines like Symbicort in China. The drug’s sales beat the Zacks Consensus Estimate of $707 million as well as our model estimate of $719.9 million.
Fasenra recorded sales of $530.0 million in the quarter, up 20% year over year, driven by strong demand growth and market share gains. The recent launch for the EGPA indication also benefited sales in some countries. The drug’s sales beat the Zacks Consensus Estimate of $498.0 million as well as our model estimate of $492.8 million.
In the Rare Disease portfolio, Soliris sales fell 24% to $462 million due to conversion to Ultomiris and biosimilar erosion in Europe.
Ultomiris revenues amounted to $1.23 billion, up 17%, driven by demand growth across indications, geographic expansions in new markets and continued conversion from Soliris. The impact of Medicare Part D redesign was minimal in the third quarter.
Core selling, general and administrative expenses increased 4% at CER to $3.82 billion. Core research and development expenses rose 14% to $3.55 billion. Core operating profit rose 13% to $4.99 billion in the quarter. The core operating margin was 33% in the quarter, which rose 1 percentage point year over year at CER.
AstraZeneca maintained its financial guidance for 2025.
It expects total revenues to grow by a high single-digit percentage at CER.
Core EPS is expected to increase by a low double-digit percentage.
AstraZeneca’s third-quarter results were strong as it beat estimates for both earnings and sales. Sales of almost all key drugs, including Tagrisso, Imfinzi, Farxiga, Symbicort and Fasenra beat estimates while Lynparza missed. All these drugs have been driving AstraZeneca’s top-line growth over the past several quarters, backed by increasing demand trends. Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap also contributed to top-line growth in the quarter. The rare disease business also continued to improve in the quarter.
Shares of the British drugmaker rose slightly in pre-market trading on Thursday in response to the strong earnings performance.
Year to date, the stock has risen 23.9% compared with the industry’s 10.3% increase.
AZN reaffirmed its 2025 guidance. Despite the impact from Part D redesign, AstraZeneca expects total revenues to grow by a high single-digit percentage at CER in 2025. The company also looks confident about sustaining the growth in 2026.
Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate $80 billion in total revenues by 2030, a significant increase from the $54 billion it generated in 2024. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues.
The company is also on track to achieve a mid-30s percentage core operating margin by 2026
Last month, AstraZeneca signed a drug pricing agreement with the Trump administration. AZN offered to cut prescription drug prices and boost domestic investments in exchange for a three-year exemption from tariffs on pharmaceutical imports. AZN has already committed to investing $50 billion over the next five years to strengthen its U.S. research and production footprint.
Pfizer ( PFE also signed a similar deal with the Trump administration. The deals between PFE and AZN and the Trump administration have raised hopes of a sustainable sector recovery, with the President offering to hold off the tariffs on pharmaceutical imports to sign similar deals with other drugmakers.
Currently, AstraZeneca has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AstraZeneca PLC price-consensus-chart | AstraZeneca PLC Quote
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This article originally published on Zacks Investment Research (zacks.com).
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