AstraZeneca PLC's (LSE:AZN, NASDAQ:AZN) full-year results showed the pharmaceutical group navigating a challenging comparison period with a robust operational performance and a renewed commitment to long-term growth, analysts said.
Fourth-quarter revenue came in at $15.5 billion, 2% ahead at constant exchange rates and just over 1% above consensus.
Core earnings per share were in line at $2.12, though Shore Capital estimates underlying earnings growth of closer to 16% for the year once the impact of non-repeating collaboration revenue is stripped out.
Oncology continued to be a bright spot, with sales up 19% at constant exchange rates to $6.47 billion, underpinned by strong contributions from Imfinzi and Calquence. Alliance revenue also beat expectations, buoyed by demand for Enhertu.
Cardiovascular, renal and metabolism (CVRM) also exceeded forecasts, but Shore noted that Farxiga, AstraZeneca’s top-selling product, is expected to come under generic pressure from the second quarter of 2026.
Despite these top-line beats, core operating profit fell short of consensus by 8% as R&D and SG&A expenses came in higher than expected.
R&D alone accounted for 24% of total revenue, slightly above prior guidance, reflecting investment in late-stage trials and next-generation technologies, including GLP-1s and bispecifics.
Looking ahead, AZ issued guidance for mid- to high-single-digit revenue growth in 2026 and low double-digit EPS growth, both at constant exchange rates.
While consensus forecasts for 2026 appear to be broadly in line with consensus, ShoreCap's own forecast (11% revenue and 19% EPS growth) sits above guidance and may be revised slightly to reflect higher finance costs.
Importantly, AstraZeneca reiterated its ambition to achieve $80 billion in annual revenue by 2030, a target Shore believes is achievable and potentially beatable, projecting $82 billion over the same horizon.
Valuation-wise, the stock trades at a forward price-to-earnings ratio of 18–19 times for 2026, a premium to peers but justified by what Shore calls “an enviable pipeline and broad blockbuster base” with multiple phase III catalysts expected again this year.
After a sluggish start, the shares were up 1% at 14,044p.