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 and recent launches.

• Core operating profit increased 12% year-over-year, with core EPS up 5% to $2.58, reflecting a favorable prior-year tax rate.

• Four positive Phase III program readouts, including tozorakimab and efzimfotase alfa, reinforce pipeline strength and support long-term growth ambitions.

• 14 regulatory approvals achieved in major regions since the previous quarter.

• Investments in R&D and commercial capabilities continue to support future launches and pipeline advancement.

Financial highlights

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

• Core gross margin was 83% in Q1; core R&D expenses rose 8% and accounted for 23% of revenue.

• Core SG&A costs increased 7–12%, partly due to pre-launch investments.

• Core operating profit grew 12%; core EPS reached $2.58, up 5%.

• Cash flow from operations was $3.4bn, slightly down due to prior year milestone receipts.

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

Outlook and guidance

• Full-year 2026 guidance reiterated: total revenue expected to grow mid-to-high single digits at CER, core EPS to increase by low double digits.

• 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 and commercial execution to achieve the $80bn 2030 revenue ambition.