AstraZeneca’s $13.6bn Q1 2025 sales surge as cancer drugs and AI deals set stage for $80bn goal

How Did AstraZeneca Perform Financially in Q1 2025?

AstraZeneca Plc reported total revenue of $13.59 billion for the first quarter of 2025, representing a 10% increase at constant exchange rates (CER) and a 7% increase on a reported basis. Core earnings per share (EPS) grew 21% to $2.49, while reported EPS surged 34% to $1.88, reflecting improved operating leverage, favorable tax settlements, and continued cost discipline across key segments.

The company’s gross margin expanded by one percentage point to 84%, while core operating margin rose to 35%, supported by rising product sales in oncology and respiratory biologics. Operating profit grew 18% year-on-year to $3.67 billion, and EBITDA increased 13% to $4.96 billion.

Geographically, the U.S. remained AstraZeneca’s largest market, generating 42% of revenue, with Emerging Markets contributing 29%, including China at 13%. Europe and other established regions accounted for the remaining 29%, collectively delivering strong mid-to-high single-digit growth.

What Were the Key Growth Drivers in AstraZeneca’s Product Portfolio?

AstraZeneca’s oncology portfolio led the charge with revenue rising 13% at CER to $5.64 billion, accounting for 42% of total sales. Enhertu stood out with a 34% jump in revenue to $596 million, boosted by recent positive results from the DESTINY-Breast09 trial, which demonstrated its superiority as a first-line treatment for HER2-positive metastatic breast cancer.

Imfinzi delivered 16% growth to $1.26 billion, driven by expanded use across lung, liver, and bladder cancers. Strong uptake was noted from new indications such as AEGEAN for resectable NSCLC and NIAGARA for bladder cancer. Tagrisso, AstraZeneca’s best-selling drug, brought in $1.68 billion, showing 8% CER growth amid broader adoption for EGFRm NSCLC across geographies.

BioPharmaceuticals also performed well, with Cardiovascular, Renal and Metabolism (CVRM) revenue rising 13% to $3.32 billion. Farxiga contributed $2.13 billion, while Tezspire saw explosive growth of 85% to $217 million. Respiratory and Immunology (R&I) revenue rose 13% to $2.08 billion, led by double-digit growth in Fasenra and Breztri.

Rare Disease, however, remained flat at $2.04 billion. Ultomiris saw strong 25% growth to $1.05 billion, but Soliris declined 38% due to biosimilar pressure and patient conversion to Ultomiris. Newly launched drugs like Wainua and Koselugo helped offset some of this erosion.

How Is AstraZeneca Advancing Its R&D Pipeline and Partnerships?

In Q1 2025, AstraZeneca reaffirmed its innovation-led strategy with five positive Phase III trial readouts and 13 regulatory approvals across major markets. Among the key updates was DESTINY-Breast09 (Enhertu + pertuzumab), which showed significant improvement in progression-free survival. MATTERHORN (Imfinzi + chemotherapy) and SERENA-6 (camizestrant + CDK4/6 inhibitor) also delivered statistically significant and clinically meaningful outcomes.

To deepen its innovation engine, the company made several strategic acquisitions and partnerships. AstraZeneca acquired EsoBiotec for up to $1 billion to accelerate in vivo cell therapies. It also signed licensing deals with Alteogen for the ALT-B4 platform to enhance subcutaneous oncology delivery and formed an AI-powered R&D partnership with Tempus and Pathos AI to develop foundational multimodal oncology models.

AstraZeneca announced its sixth global strategic R&D center in Beijing, reinforcing its commitment to China and bolstering its early-stage research and AI capabilities. The company now operates 11 manufacturing facilities in the U.S. and two R&D centers in China (Shanghai and Beijing).

What Are the Regulatory Challenges AstraZeneca Faces in China?

Despite its growth momentum, AstraZeneca confronted regulatory headwinds in China during the quarter. The Shenzhen Customs Office issued an appraisal opinion citing $1.6 million in unpaid import taxes linked to Enhertu. If found liable, fines could be five times the tax amount.

Separately, the company was notified by the Shenzhen Public Security Bureau regarding alleged unlawful collection of personal data. AstraZeneca clarified that no financial gain resulted from this, and it is cooperating fully with Chinese authorities. These investigations have raised concerns among investors about the potential operational and reputational impact in one of its fastest-growing markets.

What Is the Stock Market Sentiment Around AstraZeneca?

Following the Q1 release on April 29, 2025, AstraZeneca shares gained 2.6%, closing at $71.71 in U.S. trading. The earnings beat, especially the 21% increase in Core EPS, drove positive sentiment, although total revenue of $13.59 billion fell short of Wall Street’s $13.81 billion expectation. In London, the stock briefly dipped more than 5% intraday before recovering to close 0.9% higher at £106.18.

Despite the revenue miss and regulatory risk in China, analysts maintained bullish ratings. The average price target stands at $99.72, indicating nearly 40% upside. The broad pipeline, reaffirmed guidance, and aggressive R&D investments support this optimistic long-term view.

Buy-side institutional sentiment has remained firm. In India, foreign institutional investor (FII) ownership increased slightly from 2.9% to 2.92%, while domestic institutional investors (DIIs) raised their stake from 5.08% to 5.2%. Options activity leaned bullish with growing open interest in Q3–Q4 2025 calls, reflecting investor confidence in medium-term upside catalysts.

How Do AstraZeneca’s Cash Flow and Financials Look?

Net cash inflow from operations rose to $3.71 billion, up from $2.49 billion in Q1 2024, supported by higher profits and favorable tax settlements. Capital expenditure increased to $493 million as the company continued investing in digital infrastructure and manufacturing scale-up.

Net debt stood at $26.07 billion as of March 31, 2025, compared to $24.57 billion in December 2024. The increase was driven by acquisitions, R&D outlays, and dividends. AstraZeneca reiterated its intention to raise the FY25 annual dividend to $3.20 per share, supported by strong reserves and a progressive capital allocation policy.

What Role Does ESG Play in AstraZeneca’s Long-Term Strategy?

AstraZeneca continues to lead among global pharmaceutical firms on ESG metrics. The company published its first Taskforce on Nature-related Financial Disclosures (TNFD) report in Q1 and integrated its 2024 sustainability report with its financial results. It achieved a 77.5% reduction in Scope 1 and 2 emissions, a 23% reduction in water use, and electrified 63% of its vehicle fleet.

It also marked the 10th anniversary of its flagship Healthy Heart Africa program and expanded its Young Health Program (YHP) to address climate-related health challenges. At the World Economic Forum, AstraZeneca led health equity discussions, reinforcing its influence on global health policy and sustainability leadership.

What’s the 2025 and 2030 Outlook for AstraZeneca?

AstraZeneca reiterated its full-year 2025 guidance: Total Revenue is expected to grow by a high single-digit percentage and Core EPS by a low double-digit percentage at CER. If forex rates hold at March 2025 levels, this would result in a low single-digit drag on both metrics.

CEO Pascal Soriot reaffirmed the company’s long-term ambition of reaching $80 billion in revenue by 2030. Strong clinical momentum, global infrastructure, and sustained R&D reinvestment underpin that vision. While macro challenges and regional regulatory risks persist, AstraZeneca’s diversified model continues to attract institutional capital and maintain strategic resilience.