ii view: AstraZeneca on track to achieve ambitious target
Big in cancer treatments and now taking an interest in weight-management drugs. We assess prospects for this giant of the UK stock market.
6th November 2025 11:13
by Keith Bowman from interactive investor
Third-quarter results to 30 September
- Currency adjusted revenue up 10% to $15.2 billion
- Currency adjusted core earnings per share (EPS) up 12% to $2.38
Guidance:
- Continues to expect full-year revenue to increase by a high single-digit percentage
- Continues to expect core EPS for the full year to rise by a low double-digit percentage
- Targeting a total annual 2025 dividend payment of $3.20 per share, up from $3.10 per share in 2024
Chief executive Pascal Soriot said:
“We are delivering on our strategy to strengthen our operations in the United States to power our growth. This includes a historic agreement with the US government to lower the cost of medicines for American patients, and broadening our US manufacturing footprint having broken ground at our new $4.5 billion Virginia manufacturing facility in October."
- Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts
ii round-up:
AstraZeneca (LSE:AZN) today detailed sales and profit that beat expectations, aided by growth across all its therapy areas including a 16% rise for cancer, or oncology related sales.
Currency adjusted revenues rose 10% to $15.2 billion, driving core earnings up 12% to $2.38 per share. Analysts had expected outcomes of $14.8 billion and $2.30 per share respectively.
The drug maker maintained full-year hopes for sales to rise by a high single-digit percentage and core earnings to rise by a low double-digit percentage, leaving it on target to achieve management’s ambition of $80 billion of annual sales by 2030 compared with $54.1 billion in 2024.
Shares in the UK’s biggest company by stock market value rose 0.5% in early UK trading having come into these latest results up by close to a fifth so far in 2025. That’s similar to the FTSE 100 index. Fellow UK headquartered rival GSK (LSE:GSK) is up by a third year-to-date.
AstraZeneca’s medicines focus on the areas including Oncology, Cardiovascular, Renal and Metabolic (CVRM) illnesses and including drugs for kidney disease and diabetes, as well Respiratory & Immunology treatments.
Oncology sales for the quarter hit $6.6 billion; Respiratory & Immunology sales rose 14% to $2.25 billion; treatments for rare diseases climbed 11% to $2.4 billion.
Total positive Phase III trials for the nine months to late September hit 16, including four since second-quarter results and including high-impact readouts for baxdrostat in hypertension and Enhertu and Datroway in breast cancer.
Broker Morgan Stanley reiterated its ‘overweight’ stance on AstraZeneca shares post the results, flagging the company as a ‘top pick.’
Fourth-quarter and full-year results are scheduled for 10 February.
ii view:
Founded in 1999 through a merger, the Anglo-Swedish pharmaceutical and biotechnology company today operates in over 100 countries. The USA generated most sales in 2024 at 40%. Other major markets included China at 12%, the UK 9%, and Japan 6%. Emerging markets total 14%.
For investors, stretched government finances globally generate pressure to reduce drug prices. Legal proceedings are considered typical for the pharmaceutical business, including litigation and government investigations. Takeovers, such as its recent acquisition of weight-management drug developer Six Peaks for up to $315 million, are not guaranteed to generate success, while GSK shares sit on a forecast dividend yield of 3.6% compared with 2% at Astra.
- How we build a defensive buffer and three new buys in 2025
- Stockwatch: how much notice should we take of Warren Buffett?
- Sainsbury’s on track to make over £1bn this year
To the upside, a pricing agreement for its core US market was previously agreed. Cancer treatment sales remain robust, accounting for almost 44% of overall revenues during this latest quarter. The development of new treatments including those for cancer continues to progress, while geographical diversity including exposure to China and emerging markets is not to be ignored.
On balance, and despite ongoing risks, management’s 2030 sales ambition and a consensus analyst fair value estimate above £145 per share is likely to see investors remain supportive of this major pharmaceutical company.
Positives:
- Ongoing drug development
- Acquisitions adding to diversity of drug treatments
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.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.