AstraZeneca (NYSE:AZN) reported continued revenue and earnings growth for the first nine months of 2026, supported by double-digit expansion in oncology, rare disease and respiratory and immunology, while loss-of-exclusivity pressures weighed on parts of its cardiovascular, renal and metabolism portfolio.
Chief Executive Officer Pascal Soriot said total revenue increased 7% at constant exchange rates during the first nine months, while core earnings per share rose 14%. Excluding Farxiga and Brilinta, total revenue grew 12%, according to the company.
The company reiterated its full-year outlook for total revenue growth in the mid-to-high single digits and core EPS growth in the low double digits. AstraZeneca also announced a three-year “Reshaping for Sustainable Growth” program intended to redirect resources toward its pipeline and future growth areas.
Financial performance and restructuring plans
Product revenue rose 6% in the first nine months, while alliance revenue climbed 32%, driven by higher profit shares from partnered medicines including Enhertu, Datroway and Tezspire in markets where AstraZeneca’s partners report product sales.
Core research and development spending increased 5% year to date and represented 23% of revenue. Core selling, general and administrative expense rose 4%, reflecting investments behind the U.S. launch of Baxfendy, preparations for a potential tozorakimab launch and recent regulatory approvals, Chief Financial Officer Aradhana Sarin said.
Cash flow from operating activities totaled $10.9 billion in the nine-month period, down from the prior-year period. Sarin attributed the decline principally to a Lynparza milestone received in the first quarter of 2025 and working-capital effects related to Farxiga’s U.S. loss of exclusivity.
The restructuring program is expected to result in up to $2 billion of one-time costs and generate $1.5 billion in annualized pre-tax run-rate benefits. The company expects to complete related activities by the end of 2029 and said the savings will be reinvested primarily in its pipeline. Sarin said the costs are expected to be “more a cash cost.”
Oncology drives growth
Oncology revenue grew 16% in the first nine months to $21.9 billion, including 17% growth in the third quarter. Executive Vice President of Oncology Business Unit Dave Fredrickson said the U.S. grew 18% year over year during the nine-month period, while Europe and emerging markets posted mid-teens growth.
- Tagrisso third-quarter revenue increased 12% to $2.1 billion, surpassing $2 billion in quarterly sales for the first time.
- Combined Imfinzi and Imjudo revenue exceeded $2 billion in the quarter, with growth of 26% and 25%, respectively.
- Calquence revenue rose 16% to $1.1 billion.
- Enhertu revenue increased 35% to $969 million.
- Truqap revenue rose 9% to $210 million, while Datroway generated $78 million.
Fredrickson said Enhertu’s U.S. performance was driven by established breast-cancer uses and contributions from newer indications. He also cited initial uptake for Datroway in lung and breast cancer and early testing activity for Etcamah following its September U.S. launch.
AstraZeneca launched Zegfrovy in the U.S. earlier in the month for previously treated non-small cell lung cancer with EGFR exon 20 insertion mutations. The company also reported its first Zegfrovy revenue in the third quarter.
Pipeline updates and 2027 catalysts
Soriot said AstraZeneca has reported positive results from 12 Phase III programs since its full-year results in February and received first approvals for four new medicines, including Etcamah in the U.S. The company said it now has 14 approved new molecular entities as it targets 20 by 2030.
Among highlighted oncology data, Susan Galbraith, executive vice president of Oncology R&D, said the SAFFRON trial found that Orpathys plus Tagrisso reduced the risk of death by 32% compared with platinum-based chemotherapy in selected patients with EGFR-mutated lung cancer and MET amplification or overexpression following Tagrisso progression.
Galbraith also pointed to data for Sone-Ve in previously treated claudin 18.2-positive advanced gastric cancer. In third-line and later patients, Sone-Ve reduced the risk of death by 53% and doubled median overall survival from five to 10 months, she said.
The company expects more than 20 key Phase III readouts in 2027, including pivotal data for nine potential new medicines. Soriot said the full collection of planned 2027 readouts represents more than $20 billion in non-risk-adjusted peak-year revenue potential, although he noted that not every program will succeed.
Biopharmaceuticals and rare disease
Biopharmaceutical revenue declined 6% in the third quarter to $5.6 billion, as respiratory and immunology growth offset much of the anticipated pressure on Farxiga, Brilinta and Roxadustat.
Respiratory and immunology revenue increased 11% to $2.5 billion. Tezspire revenue rose 51% to $429 million, Fasenra grew 14% to $602 million, Breztri increased 14% to $374 million, and Saphnelo rose 32% to $235 million.
Cardiovascular, renal and metabolism revenue declined 18% to $2.6 billion. Farxiga sales fell 23% to $1.6 billion, reflecting U.S. loss of exclusivity and China’s volume-based procurement effects. Baxfendy generated $9 million in quarterly revenue, with AstraZeneca expecting much of its near-term revenue to come from commercial customers as it builds access ahead of anticipated Medicare Part D reimbursement in 2028.
Rare disease revenue grew 11% in the first nine months to $7.5 billion. Marc Dunoyer, CEO of Alexion and AstraZeneca’s chief strategy officer, said Ultomiris revenue rose 19% in the third quarter, while Strensiq grew 34%. He added that AstraZeneca discontinued Ultomiris development in delayed graft function after a lack of consistent efficacy.
AstraZeneca said it expects a potential U.S. launch of tozorakimab in the first quarter of 2027, subject to regulatory approval. The company has described the COPD medicine as a potential $5 billion-plus asset.
About AstraZeneca (NYSE:AZN)
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.
