AstraZeneca Q2 profit beats expectations on cancer drug growth

AstraZeneca's second-quarter earnings exceeded profit forecasts, reporting core earnings per share at $2.63, an 18% increase on a constant-currency basis, surpassing the analyst consensus of $2.48. Total revenue increased by 5% to $15.38 billion, slightly under the expected $15.39 billion. Net profit rose over 2% to $2.51 billion. Sales of cancer drugs grew by 15%, while revenues from rare diseases increased by 8%. However, revenue in China, its second-largest market, fell by 13% due to generic competition and policy changes. The company reaffirmed its 2026 projections for low double-digit EPS growth and mid-to-high-single-digit revenue growth, alongside an $80 billion annual revenue goal for 2030. CEO Pascal Soriot expressed optimism about the pipeline, anticipating over twenty significant readouts in the next 18 months. This announcement came after a setback earlier this month when the nerve drug Wainua failed a late-stage trial. In Q2, AstraZeneca launched six Phase III trials for elecoglipron, an oral GLP-1 weight-loss medication, to compete with Novo Nordisk and Eli Lilly. Additionally, the peak sales forecast for tozorakimab, an experimental respiratory treatment, was raised from $3 billion to over $5 billion. CFO Aradhana Sarin mentioned that the war in Iran has increased logistics expenses. AstraZeneca's stock rose by 1.7% during morning trading in London, though it has declined approximately 7% this year.