ii view: AstraZeneca bullish on potential blockbuster assets

Reiterating an ambitious 2030 sales target and with AI expected to assist with future drug development. Buy, sell, or hold?

30th October 2026 16:00

by Keith Bowman from interactive investor

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Third-quarter results to 30 September

Currency adjusted revenue up 7% to $16.2 billion (£12.2 billion) from a year ago
Currency adjusted core earnings per share (EPS) up 19% to $2.79 from a year ago

Guidance:

Continues to expect increase in full-year 2026 currency adjusted revenue of mid-to-high single-digit percentage
Continues to expect full-year 2026 core EPS to rise by low double-digit percentage
Still plans to increase total 2026 dividend payment to $3.30 per share versus $3.20 last year

Chief executive Pascal Soriot said:

“In the first nine months we saw strong commercial momentum with total revenue up 7% and Core EPS up 14%, driven by our diverse therapy areas and global presence. We have had approvals for four new medicines and reported 12 positive Phase III programme readouts with a collective peak year revenue potential well in excess of ten billion dollars.

“Our rich series of upcoming readouts in 2027 has a potential of more than twenty billion dollars. With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition and to sustain growth through the next decade.”

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ii round-up:

AstraZeneca (LSE:AZN) today detailed sales and profit that beat City forecasts, with the drug maker flagging potential new sales of $20 billion should trials for compounds under trial prove successful in 2027.

A 7% increase in third-quarter currency adjusted revenues to $16.2 billion helped drive 19% growth in core earnings to $2.79 per share. Analysts had expected $15.9 billion and $2.59 per share respectively.

Shares in the FTSE 100 giant rose 5% having come into these latest results down by a similar amount so far in 2026. Rival GSK (LSE:GSK) is up around 2% during that time. The FTSE 100 index has gained 8% year-to-date.

Astra’s medicines focus on areas including cancer (oncology), respiratory conditions, as well as other areas including rare diseases.

Cancer related sales, accounting for almost half of all revenue, rose 17% on a currency adjusted basis to $7.77 billion. Respiratory related sales, and those for rare diseases, each accounting for 16% of total sales, rose 11% and 10% respectively to $2.5 billion and $2.6 billion.

Revenue for Cardiovascular, Renal and Metabolic (CVRM) related conditions, accounting for another 16% of overall sales, fell 17% to $2.6 billion. They were hindered by the 2025 loss of patent for its Farxiga drug, used to treat diabetes, heart failure, and chronic kidney disease.

Astra maintained its forecast for annual growth in 2026 for both sales and earnings on a currency adjusted basis. It also expects a total 2026 dividend payment of $3.30 per share, up from $3.20 per share in 2025.

Broker Morgan Stanley reiterated its ‘overweight’ stance on AstraZeneca shares post the results, with target price of £148 per share.

Full-year and fourth-quarter results are scheduled for 9 February.

ii view:

Formed via a UK and Swedish company merger back in 1999, Astra today employs around 96,000 people with operations in over 100 countries. The US generated most sales during the first half to late June at 42%. That was followed by Europe at 22%, China 11%, emerging markets 16%, and other established markets the balance of 9%.

For investors, governments worldwide with stretched finances continue to pressure drug companies to reduce drug sale prices. Legal proceedings are considered typical for the pharmaceutical industry, including litigation and government investigations. A forecast dividend yield of close to 2% is below the 3.5%-plus yields on offer at rivals GSK and Hikma Pharmaceuticals (LSE:HIK), while previous acquisitions made to accelerate growth do not come without risk.

More favourably, cancer treatment sales continue to grow. A pricing deal with the US government was previously agreed. In early 2026, Astra announced a $15 billion investment plan into China to help expand its capabilities in discovering, developing, and making medicines, while geographical diversity includes 16% of sales in emerging markets.

For now, and with management reiterating hopes for $80 billion of sales by 2030 ($58.7 billion in 2025) and the City estimating a target price of over £155 per share, reasons for optimism persist.

Positives:

Strength of cancer sales
AI now assisting with 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

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