AstraZeneca Q3 Earnings Beat but Guidance Stays Flat

AstraZeneca surpassed market expectations in the third quarter, driven by robust sales of its cancer and cardiovascular treatments, yet investors were left wanting as the company chose not to raise its full-year guidance.

Revenue for the three months ending September 30 reached $15.19 billion at constant currency, up 10% year-on-year, comfortably beating the expected $14.79 billion. Core earnings rose 12% to $2.38 per share, outperforming forecasts of $2.29.

The Anglo-Swedish drugmaker credits its momentum to blockbuster products and hopes to offset looming patent expiries, including diabetes and heart medication Farxiga, with upcoming launches like a new blood pressure treatment. Sales in the U.S., AstraZeneca’s largest market, climbed 9% to $6.55 billion, while China, the company’s second-largest market, contributed $1.76 billion, a 5% rise despite regulatory scrutiny.

While the quarterly numbers impressed, AstraZeneca opted to maintain its full-year outlook: high single-digit revenue growth and a low double-digit increase in core earnings. Analysts had anticipated an upward revision, but the company cited rising costs and competition from generics as reasons for caution. Core operating expenses grew 9% to $21.6 billion over the first nine months of the year.

The company is also looking at a new U.S. drug pricing deal and plans to list on the NYSE to strengthen its capital base. Despite these initiatives, management emphasized that any potential impact from the U.S. pricing agreement is expected to be manageable.

AstraZeneca’s results underscore both its ability to generate strong sales and the challenges of navigating patent cliffs, cost pressures, and regulatory environments in key global markets.