Astrazeneca PLC Sponsored ADR (AZN.US) Q3 profit growth exceeds expectations, with oncology drugs as the main growth driver.

Astrazeneca PLC Sponsored ADR (AZN.US) released its Q3 2026 results on October 30. On a constant exchange rate (CER) basis, total revenue for the quarter grew 7% year-over-year to US$16.209 billion, product sales rose 5% to US$15.066 billion, and alliance revenue increased 36% to US$1.107 billion. Core earnings per share were US$2.79, up 19% year-over-year; reported earnings per share were US$2.02, up 26%. According to consensus estimates compiled by MarketBeat, the market had expected core EPS of US$2.60 and revenue of US$16.00 billion for the quarter, with actual results beating by approximately 7% and 1%, respectively. By segment, oncology continued to drive growth: revenue was US$7.765 billion, up 17% year-over-year, accounting for 48% of total revenue, with Imfinzi up 26% to US$1.990 billion, Enhertu (including alliance revenue) up 35% to US$1.581 billion, and Tagrisso up 12% to US$2.087 billion. Patent expirations and domestic volume-based procurement weighed on mature products: Farxiga fell 25% to US$1.605 billion due to generic competition in the US, Brilinta fell 50%, and the cardiovascular, renal and metabolic business declined 18% overall. Rare disease business grew 10%, and respiratory and immunology grew 11%. Core gross margin was 82%, up 1 percentage point; core operating profit was US$5.855 billion, up 20% (CER), with a core operating margin of 36%, up 4 percentage points. By region, US revenue was US$6.899 billion, up 5%; Europe grew 12%; China revenue was US$1.920 billion, up 3% on a CER basis (up 9% on a reported basis). The company reiterated its full-year 2026 CER guidance: mid-to-high single-digit growth in total revenue, low double-digit growth in core EPS, and a core tax rate of 18%22%, and plans to raise the full-year dividend to US$3.30 per share. For the first nine months, revenue was US$46.881 billion, up 7% on a CER basis; core EPS was US$8.00, up 14%. Under Chief Executive Officer Pascal Soriot, Astrazeneca PLC Sponsored ADR is seeking to expand the eligible patient population for its cancer drugs through combination therapies. The strategy is paying off: recent data from a top European oncology conference showed that combining Imfinzi with an Amgen drug helped small cell lung cancer patients live eight months longer. Astrazeneca PLC Sponsored ADR also showed that combining Tagrisso with another oncology drug delayed disease progression in another type of lung cancer. Despite rising sales, investors have remained cautious on Astrazeneca PLC Sponsored ADR following multiple clinical trial setbacks this yearunusual for a company accustomed to a steady stream of positive results. Earlier this year, the heart drug Wainua failed in a clinical study. Since the start of the year, Astrazeneca PLC Sponsored ADR shares have fallen 5.4%. Sales of some cardiovascular drugs, including the long-established anticoagulant Brilinta, declined last quarter.