UK pharmaceutical giant AstraZeneca (LON:AZN) reaffirmed its target of generating $80 billion of revenue in 2030. The firm made the pledge alongside Q2 and H1 earnings which topped analysts’ forecasts.
Q2 earnings top forecasts
For the six months to June, Astra reported revenue of $30.67 billion, up 9.4% on a headline basis and 6% at constant exchange rates. Growth in Oncology and Rare Diseases hit double digits, offsetting weakness in China and the loss of exclusivity for Farxiga in the US.
Pre-tax profit rose 2.8% in H1 to $6.7 billion, after Q2 profit dipped 11% to $2.8 billion. However, Q2 core operating profit per share rose 21% to $2.63, topping the $2.49 market estimate.
The company confirmed its FY26 targets of mid-to-high single digit revenue growth and low double-digit growth in core EPS. It also stuck to its medium-term target of $80 billion of revenue against $58.7 billion in FY25.
More approvals and endpoints met
CEO Pascal Soriot was keen to highlight the firm’s succesful trials and drug approvals in major regions since its FY25 results. ‘In the first half we saw strong performance and continued pipeline delivery, including six key positive Phase III programmes and eight first approvals in major markets, including in the US for Baxfendy, our first-in-class medicine for hypertension’, added Soriot.
Earlier this month, Astra shares suffered their biggest one-day fall in several years after its heart drug Wainua failed Phase III trials. The firm pointed to renewed Phase III successes for Imfinzi, sone-ve and Ultomiris, as well as US approval for Datroway, Enhertu and Fasenra.
As we said when the shares tanked on the Wainua news, we aren’t pharma specialists but failure to meet its endpoints is rare for Astra. Today’s update redirects the focus onto successful trial outcomes and some 30 new approvals in major markets.
The firm has a strong pipeline to boot, with more than 20 high-value readouts due over the next 18 months. Investors will also appreciate confirmation not just of this year’s sales and earnings target but the medium-term target.
Astra shares aren’t especially cheap on an historic basis, but if it can sustain low double-digit core EPS growth it should see upgrades. Moreover, if – or when – the AI bubble bursts, it’s exactly the kind of stock investors will flock to for safety.
