ii view: AstraZeneca benefits from cancer drug sales growth

Selling medicines in China and the emerging markets and with its interest in developing weight-management drugs recently strengthened. Buy, sell, or hold?

10th February 2026 11:35

by Keith Bowman from interactive investor

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Photo by Thomas Fuller/NurPhoto via Getty Images.

Fourth-quarter results to 31 December

Currency adjusted revenue up 2% to $15.5 billion (£11.3 billion)
Currency adjusted core earnings per share (EPS) down 2% to $2.12
Second interim dividend of $2.17 per share (159.5p per share)
Total dividend payment for 2025 up 3% to $3.20 per share

Guidance:

Expect full year 2026 revenue to increase by a mid- to high single-digit percentage
Expects full year 206 core EPS to rise by low double-digit percentage

Chief executive Pascal Soriot said:

"In 2025 we saw strong commercial performance across our therapy areas and excellent pipeline delivery. We have more than 100 Phase 3 studies ongoing, including a substantial and growing number of trials of our transformative technologies which have the potential to revolutionise outcomes for patients and drive our growth well beyond 2030.

“Lastly, ordinary shares in our company began trading on the NYSE on the 2 February, resulting in a harmonised listing structure across exchanges in London, New York and Stockholm, enabling more shareholders to participate in our company's exciting future."

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ii round-up:

AstraZeneca (LSE:AZN) today detailed further growth in cancer drug sales with both quarterly revenues and earnings broadly matching City forecasts.

Sales in the fourth quarter to late December rose 2% from a year ago to $15.5 billion (£11.3 billion). That included a one-fifth gain in cancer, or oncology related sales to $7 billion. Currency adjusted core earnings fell 2% to $2.12 per share, but rose 1% on a reported basis. The Cambridge headquartered pharma giant expects similar success in sales and earnings for the 2026 year ahead as that achieved in 2025.

Shares in the FTSE 100's biggest company rose 1% in early UK trading having come into these latest results up by close to a third in 2025. That’s similar to fellow UK headquartered rival GSK (LSE:GSK). The FTSE 100 index rose by just over a fifth last year.

AstraZeneca’s medicines focus on areas including Oncology, Cardiovascular, Renal and Metabolic (CVRM) illnesses including drugs for kidney disease and diabetes, as well Respiratory & Immunology (R&I) treatments.

Drug development last year included 16 positive Phase 3 studies, with results for more than 20 Phase 3 trial readouts expected in 2026.

Full year 2025 currency adjusted sales rose 8% to $58.7 billion, including growth of 17% in cancer related sales to $25.6 billion. Annual core earnings climbed 11% to $9.12 per share.

Astra now predicts sales will rise by mid- to high single-digit percentages in 2026, potentially pushing core earnings up by a low double-digit percentage.

A second interim dividend of $2.17 per share (159.5p) leaves the total payment for 2025 up 3% at $3.20 per share.

Broker Morgan Stanley reiterated its ‘overweight’ stance on AstraZeneca shares post the results, again flagging the company as a ‘top pick.’

First-quarter 2026 results are scheduled for 29 April.

ii view:

Formed via a UK and Swedish company merger back in 1999, AstraZeneca today operates in over 100 countries. Oncology products generated most sales in 2025 at 44%. That was followed by CVRM sales at 22%, rare disease sales at 16%, R&I at 15% and other medicines the balance of 3%.

Geographically, the US came in first at 43% of total sales. Europe followed at 22% of sales, then China at 11%, Emerging Markets at 15%, and other established markets the balance of 9%.

For investors, legal proceedings are considered typical for the pharmaceutical business, including litigation and government investigations. Stretched government finances globally generate pressure to reduce medicine prices. A forecast price/earnings (PE) ratio matching the 10-year average may suggest the shares are not obviously cheap. Astra’s forecast dividend yield of around 1.7% is also less than rival GSK's at over 3%.

On the upside, sales of cancer treatments remains robust. A late January collaborative agreement with China’s CSPC Pharmaceuticals expands developmental opportunities in the weight management drug space. A pricing agreement in the US was previously agreed, while geographical diversity includes around 15% of sales going to emerging markets.

In all, and with AstraZeneca targeting 2030 sales of $80 billion, plus a consensus analyst fair value estimate above £150 per share, long-term investor optimism looks likely to persist.

Positives:

Ongoing drug development
Collaborations adding to diversity of new drug development

Negatives:

Involved in various legal proceedings considered typical to its business
Currency movements can hinder

The average rating of stock market analysts:

Buy

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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