AstraZeneca (AZN) Q1 2025 earnings summary

Executive summary

• Total revenue grew 10% year-over-year at constant exchange rates (CER) in Q1 2025, reaching $13.5bn–$13.6bn, with strong demand for innovative medicines and robust performance across all major regions and therapy areas.

• Core EPS increased 21% year-over-year to $2.49, supported by operational leverage, margin expansion, and a lower tax rate from settlements.

• 13 regulatory approvals and five positive Phase III results were achieved since the last full-year results, including two NMEs; nine NMEs delivered toward the 2030 ambition of 20.

• Significant investments in R&D, manufacturing, transformative technologies, and business development transactions are supporting long-term growth ambitions, especially in the US and China.

• FY 2025 guidance reiterated: high single-digit revenue growth and low double-digit Core EPS growth at CER.

Financial highlights

• Product revenue grew 10% year-over-year at CER to $13,514m; alliance revenue up 42% to $639m.

• Gross margin was 84%, benefiting from product mix, favorable FX, and improved by 1 percentage point year-over-year.

• Core operating profit margin reached 35%; core R&D costs were 23% of total revenue; core SG&A costs increased 4%, below revenue growth.

• Net cash inflow from operating activities was $3.7bn, up 49% year-over-year; CapEx was ~$500m, expected to rise 50% for the year.

• Net debt increased by $1.5bn to $26.1bn, mainly due to a $3.3bn dividend payment; net debt/Adjusted EBITDA at 1.5x.

Outlook and guidance

• Full-year 2025 guidance reiterated: high single-digit percentage total revenue growth and low double-digit percentage Core EPS growth at CER.

• FX expected to have a low single-digit adverse impact on both total revenue and Core EPS.

• Core tax rate expected between 18%-22% for the year.

• On track for $80bn total revenue ambition by 2030 and mid-30s% Core operating margin by 2026.

• Growth expected across all therapy areas and geographies, with global demand offsetting known headwinds.