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Highlights

  • Q1 Revenue Miss Sparks Share Drop: Despite 10% revenue growth, AstraZeneca shares fell 4% due to unmet revenue expectations and soft performance in China.

  • Oncology Drives EPS Growth: The company’s oncology portfolio powered a 21% increase in core EPS to $2.49, with five positive Phase III trial readouts boosting investor confidence in its pipeline.

  • US Expansion and Full-Year Outlook Maintained: AstraZeneca reaffirmed its full-year guidance and plans to expand its U.S. manufacturing footprint, calling this an "unprecedented catalyst-rich period" for the business.

Shares in AstraZeneca PLC (LSE:AZN) dropped by 4% in early London trading following the release of its first-quarter 2025 results, as a slight miss on revenue forecasts overshadowed stronger-than-expected earnings and a standout performance in its oncology segment.

The Anglo-Swedish pharmaceutical giant reported a 10% rise in total revenue at constant exchange rates (CER) to $13.6 billion, driven primarily by double-digit growth in oncology and biopharmaceuticals. Despite the headline growth, analysts had anticipated slightly higher figures, particularly in the collaborations and alliances segment. Market observers also noted that growth in China was softer than expected.

Nevertheless, core earnings per share (EPS), which exclude one-off items and certain costs, impressed at $2.49, marking a 21% increase and beating analyst estimates. Reported EPS surged by 34% to $1.88.

Oncology Powers Growth

AstraZeneca’s robust oncology pipeline was the clear driver of Q1 momentum, with the company highlighting five positive Phase III trial readouts since its last update. These included Enhertu and camizestrant, both targeting breast cancer, and Imfinzi in gastric cancer. Two of these trials will be showcased in key sessions at the upcoming American Society of Clinical Oncology (ASCO) 2025 meeting — a key endorsement from the global cancer research community.

Chief executive Pascal Soriot described the current phase as an "unprecedented catalyst-rich period" for the company and reaffirmed the commitment to long-term growth through innovation and expansion.

Continued U.S. Expansion

Reinforcing its strategic focus on the U.S. market, AstraZeneca also announced plans to expand its U.S. manufacturing and research footprint. The company already operates eleven production sites across the United States and is preparing for further investment to support pipeline delivery and commercial demand.

Despite the earnings beat and reaffirmed full-year guidance, the stock pullback reflects investor sensitivity to revenue expectations amid a complex global landscape. The company maintained its full-year outlook, projecting high single-digit percentage growth in total revenue and a low double-digit percentage increase in core EPS at CER. It also reaffirmed expectations for a core tax rate of 18–22%.