AstraZeneca (AZN) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong commercial momentum, with total revenue up 13% year-over-year (8% at constant exchange rates) to $15.3bn, led by double-digit growth in Oncology and Rare Disease, and robust demand for innovative medicines across all major therapy areas and geographies.

• Core operating profit increased 12% and core EPS rose 5% to $2.58, reflecting robust operational execution and a favorable prior-year tax rate.

• Four positive Phase III program readouts, including pivotal data for tozorakimab and efzimfotase alfa, reinforce pipeline strength and support growth ambitions through 2030 and beyond.

• 14 new regulatory approvals secured across major regions since Q4 2025, highlighting portfolio breadth and global reach.

Financial highlights

• Total revenue reached $15.3bn, up 13% year-over-year (8% at CER); product revenue was $14.4bn, up 7%, and alliance revenue rose 26%.

• Core gross margin was 83%; core R&D expenses rose 8% to 23% of total revenue; core SG&A costs increased 7–12% year-over-year.

• Core operating profit up 12%; core EPS up 5% to $2.58; reported EPS was $1.99.

• Cash flow from operations was $3.4bn, slightly down due to prior year milestone receipts; CapEx was $645m, with further increases expected.

• Net debt increased by $2.5bn in Q1 2026 to $25.9bn, mainly due to dividend payments.

Outlook and guidance

• FY 2026 guidance reaffirmed: total revenue expected to grow mid- to high-single digits at CER, and core EPS by a low double-digit percentage.

• Core tax rate projected between 18–22%; FX expected to have a low single-digit positive impact on revenue and neutral impact on core EPS.

• Strategic focus remains on pipeline delivery, commercial execution, and investments in R&D and new launches to achieve long-term growth ambitions.