AstraZeneca profit surges 43% on cancer drug momentum
Oncology unit drives record sales as drugmaker forecasts double-digit EPS growth for 2026
AstraZeneca reported a 43% surge in pre-tax profit to $12.4 billion for 2025, driven by robust demand for cancer treatments that helped the drugmaker exceed analyst expectations and set an ambitious growth target for the coming year.
The Anglo-Swedish pharmaceutical company recorded total revenue of $58.74 billion for the full year, an increase of 9% at constant exchange rates, while core earnings per share rose 11% to $9.16. The performance was anchored by a 20% jump in oncology sales during the fourth quarter to $7.03 billion, underscoring the company's strategic pivot toward cancer treatments under Chief Executive Pascal Soriot.
AstraZeneca's flagship lung cancer drug Tagrisso delivered 10% revenue growth for the full year, while Enhertu, its antibody-drug conjugate developed with Daiichi Sankyo, surged 46% on strong performance in metastatic breast cancer and continued expansion in China. The company now counts 16 blockbuster medicines in its portfolio, up from 14 the previous year.
"Our strong commercial performance across therapy areas and excellent pipeline delivery during 2025 positions us well for continued growth," Soriot said in the company's earnings announcement. The CEO highlighted 16 positive Phase 3 study readouts completed during the year, with more than 20 Phase 3 trials scheduled to report results in 2026.
For the fourth quarter alone, revenue increased 2% at constant exchange rates to $15.5 billion, narrowly beating the analyst consensus of $15.46 billion, according to data compiled by MarketScreener. Core EPS of $2.12 for the quarter slightly missed estimates of $2.14, contributing to a 1.25% decline in London-listed shares following the announcement.
Despite the share price pullback, AstraZeneca's 2026 guidance reinforced confidence in its growth trajectory. The company forecasts mid-to-high single-digit revenue growth and low double-digit expansion in core earnings per share at constant exchange rates. The outlook helped maintain a consensus analyst price target of 14,812.75p, representing significant upside potential from current levels.
The earnings report comes at a pivotal moment for the company, which began trading ordinary shares on the NYSE on February 2, creating a harmonized listing structure across London, New York, and Stockholm exchanges. The move aims to broaden access for international investors as the company pursues expansion in key markets including the United States and China.
AstraZeneca declared a second interim dividend of $2.17 per share, bringing the total dividend for 2025 to $3.20, a 3% increase from the prior year. The dividend increase reflects management's confidence in sustainable cash flow generation, even as the company invests heavily in research and development to maintain its pipeline momentum.
The oncology division's dominance has become a defining characteristic of AstraZeneca's business model transformation under Soriot, who has overseen more than a decade of strategic shifts away from primary care and toward specialty medicines with higher growth potential. The strategy has positioned AstraZeneca to compete more effectively against pharmaceutical giants including Merck, Bristol Myers Squibb, and Roche in the lucrative cancer treatment market.
Looking ahead, analysts at Morgan Stanley noted in a recent report that AstraZeneca's pipeline includes "transformative technologies" that could "revolutionize patient outcomes and drive growth beyond 2030." The company now has more than 100 Phase 3 studies ongoing, spanning both established therapeutic areas and emerging modalities including radiopharmaceuticals and cell therapies.
The positive earnings contrast with recent challenges in the broader pharmaceutical sector, where several large drugmakers have faced patent cliffs on key products and increasing regulatory scrutiny on pricing. AstraZeneca's diversified portfolio across oncology, cardiovascular, respiratory, and rare disease franchises has provided resilience against these headwinds.