AstraZeneca Q2 Pre-tax Profit Down, But EPS Rise; Backs Positive FY26 View

(RTTNews) - British drug major AstraZeneca PLC reported Monday lower pre-tax pofit in its second quarter mainly on lower tax expenses, while earnings per share grew from last year with higher revenues, excluding weak China results. Further, the firm confirmed fiscal 2026 outlook for core earnings and revenue growth.

In the pre-market activity, the shares were gaining around 1.13 percent, trading at $170.96.

On the London Stock Exchange, the shares were at 12,806.00 pence, up 1.07 percent.

Pascal Soriot, Chief Executive Officer, AstraZeneca, said, "While we are disappointed by the CARDIO-TTRansform outcome, we are on track to deliver our $80bn Total Revenue ambition, which assumes successes and setbacks. We remain confident in the strength of our pipeline and have more than twenty high-value readouts due over the next 18 months. We continue to invest at pace in our transformative technologies, and in our commercial execution to bring our innovative medicines to patients around the globe and drive growth beyond 2030."

Looking ahead for fiscal 2026, AstraZeneca continues to expect total revenue to increase by a mid-to-high single-digit percentage, and core earnings per share to increase by a low double-digit percentage.

Further, the company announced that interim dividend has been increased by 3 cents from last year to $1.06 per share or 79.5 pence.

In FY 2026, the Company said it intends to increase the annual dividend declared to $3.30 per share.

In the second quarter, profit before tax dropped 11 percent to $2.799 billion from last year's $3.127 billion. Earnings per share, however, grew 2 percent to $1.61 from $1.58 a year ago.

Core earnings per share were $2.63, up 21 percent year-over-year.

EBITDA grew 4 percent from last year to $5.092 billion.

Total revenue went up 6 percent to $15.384 billion from last year's $14.457 billion, with double-digit growth in Oncology and Rare Disease offsetting headwinds from Farxiga US loss of exclusivity and China volume-based procurement.

Total revenue increased 5 percent at constant currency rate.

Product revenue grew 6 percent from last year to $15.384 billion. Product Sales were $14.510 billion, up 5 percent year-over-year. Alliance Revenue climbed 34 percent to $874 million.

In the quarter, Oncology revenue climbed 16 percent from last year to $7.327 billion, driven by growth in Tagrisso, Imfinzi, Calquence, Lynparza, and Enhertu drugs, among others.

Cardiovascular, Renal & Metabolism revenues fell 15 percent, while Respiratory & Immunology revenues climbed 13 percent. Infectious Disease arevenue also was down 29 percent.

BioPharmaceuticals revenues dropped 5 percent to $5.334 billion, while Rare Disease revenues grew 9 percent.

Region-wise, US revenues grew 6 percent to $6.686 billion, and revenues from Emerging Markets excluding China climbed 14 percent to $2.334 billion. Meanwhile, China revenues fell 7 percent from last year.

Europe revenues grew 11 percent and Established RoW revenues went up 4 percent.

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