AstraZeneca's net profit jumped 23% in the third quarter to $3.12 billion, driven by strong sales of its cancer treatments, as the British drugmaker announced a programme to save $1.5 billion a year to invest back into developing new medicines.
AstraZeneca unveiled the savings plan, called Reshaping for Sustainable Growth, which will cost up to $2 billion in one-off restructuring charges and is expected to be largely complete by the end of 2029. The company said the savings would be reinvested principally in its pipeline of new drugs, with plans to redeploy resources across its existing business to back more than 180 projects in development. Such restructuring could mean job cuts, though none have been announced.
CEO Pascal Soriot said in a statement: "With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition."
Revenue grew 7 percent to $16.2 billion, with oncology, its biggest business, accounting for 48 percent of total sales. Sales of lung cancer drug Tagrisso and immunotherapy Imfinzi led the growth, with oncology sales up 17 percent to $7.8 billion. Core earnings per share rose 17 percent to $2.79.
The growth came despite pressure on older medicines. Sales of Farxiga, a treatment for diabetes, heart and kidney disease, fell 25 percent to $1.6 billion after cheaper generic versions hit the US market, while blood thinner Brilinta also lost patent protection. AstraZeneca is also facing volume-based procurement in China, a state bulk-buying scheme that forces drugmakers to cut prices in exchange for large orders.
The company confirmed its outlook for 2026, expecting revenue to grow by a mid-to-high single-digit percentage and core earnings per share by a low double-digit percentage, excluding currency swings. It remains on track for its target of $80 billion in annual revenue by 2030, compared with almost $59 billion in 2025, and expects half of that to come from the US. AstraZeneca shares were up over 4.5 percent in early trading on Friday.
Analysis
Why This Matters
- The profit jump underscores AstraZeneca's successful pivot to cancer drugs, which now account for nearly half of revenue.
- The savings plan signals a major restructuring, potentially affecting jobs, but also a reinvestment in future drug development.
- The company's 2030 revenue target of $80 billion highlights its ambition and the importance of the US market.
Background
AstraZeneca is Britain's biggest pharmaceutical company. It has set a target of $80 billion in annual revenue by 2030, up from nearly $59 billion in 2025. The company has been expanding its presence in the US, with a direct share listing in New York in February, while also pledging to invest $15 billion in China by 2030. It has reported 12 positive results from late-stage trials this year and is developing a weight-loss treatment to compete with drugs such as Wegovy and Mounjaro.
What to Watch
- Whether the restructuring leads to job cuts and how employees and unions respond.
- How AstraZeneca's weight-loss treatment progresses in late-stage trials.
- The effect of generic competition on sales of older drugs like Farxiga and Brilinta.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedCEO Pascal Soriot said in a statement: “With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition.”Euronews: “"With multiple potential blockbuster assets in late-stage development and transformative technologies scaling rapidly, we are on track to deliver our 2030 ambition," CEO Pascal Soriot said in a statement.”
- SupportedAstraZeneca’s third-quarter net profit rose 23% to $3.12 billion, driven largely by its cancer treatments.Euronews: “AstraZeneca, Britain's biggest pharmaceutical company, said on Friday that its profit after tax rose 23% to $3.12 billion (€2.79bn) for the July to September period, driven largely by its cancer treatments.”
- SupportedAstraZeneca announced a plan to save $1.5 billion a year.Euronews: “The firm also launched a plan to generate $1.5 billion (€1.34bn) in annual savings”
- SupportedThe savings drive is intended to fund reinvestment in the drug pipeline.Euronews: “AstraZeneca said the savings would be reinvested in the company, principally in its pipeline of new drugs”
- SupportedAstraZeneca shares were up more than 4.5% in early trading on Friday.Euronews: “AstraZeneca shares were up over 4.5% in early trading on Friday.”
- SupportedThe savings programme could cost up to $2 billion in one-off restructuring charges.Euronews: “The savings drive, called Reshaping for Sustainable Growth, will cost up to $2 billion (€1.79bn) in one-off restructuring charges”
- SupportedThe savings programme is due to be largely complete by the end of 2029.Euronews: “and is due to be largely complete by the end of 2029.”
- SupportedRevenue grew 7% to $16.2 billion.Euronews: “Revenue grew 7% to $16.2 billion (€14.5bn).”
- SupportedOncology accounted for 48% of total sales.Euronews: “Oncology, its biggest business, accounted for 48% of the total”
- SupportedOncology sales rose 17% to $7.8 billion, led by Tagrisso and Imfinzi.Euronews: “with sales up 17% to $7.8 billion (€6.99bn), led by lung cancer drug Tagrisso and immunotherapy Imfinzi.”
- SupportedCore earnings per share rose 17% to $2.79.Euronews: “Core earnings per share, which exclude items such as restructuring costs and the amortisation of acquired drugs, rose 17% to $2.79.”
- SupportedAstraZeneca confirmed its 2026 outlook, expecting mid-to-high single-digit revenue growth and low double-digit core earnings-per-share growth, excluding currency swings.Euronews: “The company confirmed its outlook for 2026, expecting revenue to grow by a mid-to-high single-digit percentage and core earnings per share by a low double-digit percentage, excluding currency swings.”
