TLDR
- Q1 2025 revenue rose 10% YoY to $13.59 billion.
- Core EPS grew 21% to $2.49, topping expectations.
- Oncology and biopharma divisions led the growth.
- AstraZeneca reiterated 2025 guidance: high-single-digit revenue and low double-digit EPS growth.
- CEO reaffirmed $80B revenue goal by 2030, despite tariff threats.
AstraZeneca (NASDAQ: AZN) reported a robust first quarter for 2025, posting a 10% year-over-year rise in revenue to $13.59 billion. Following the announcement, the stock was trading at $70.13 at the time of writing. Core operating profit increased 12%, while core EPS surged 21% to $2.49. These results were underpinned by strong growth across all major regions and particularly strong performance from its Oncology and BioPharmaceuticals units.
The company’s oncology segment reported a 13% revenue jump, driven by leading drugs such as Enhertu and Imfinzi. Revenue from all key geographies increased, showing AstraZeneca’s global reach remains resilient amid macroeconomic uncertainties.
Pipeline Delivery Boosts Investor Confidence
CEO Pascal Soriot emphasized the company’s momentum, highlighting five positive Phase III readouts in Q1, including DESTINY-Breast09, SERENA-6, and MATTERHORN. Two of these trials are set to be featured at ASCO 2025, indicating their scientific significance.
Since its last earnings report, AstraZeneca has received 13 major regulatory approvals, reinforcing confidence in its innovation pipeline. The firm’s diversified product strategy continues to deliver results and support long-term growth plans.
Guidance Maintained Despite Tariff Risk
AstraZeneca maintained its full-year 2025 guidance: revenue is expected to rise by a high single-digit percentage, and core EPS is projected to increase by a low double-digit rate. The company sees a core tax rate of 18–22% for the year. If rates hold steady, the foreign exchange impact is expected to be mildly negative.
While President Donald Trump has threatened to impose 25% tariffs on drug imports, AstraZeneca reiterated its commitment to U.S. growth. The firm operates 11 U.S. manufacturing sites and continues to invest in R&D through its Gaithersburg, MD, and Cambridge, MA locations. It plans to invest $3.5 billion in the U.S. by the end of 2026.
Despite tariff concerns, AstraZeneca makes 40% of its revenue in the U.S., reinforcing its focus on remaining a strong local operator while navigating evolving trade policy.
Legal Risk in China a Minor Overhang
The company faces a potential fine in China related to $1.6 million in unpaid import taxes. AstraZeneca may face a penalty between one and five times that amount if found liable. While this presents some reputational risk, the scale is minor relative to the company’s financial health.
Outlook: On Track for $80B by 2030
With 2024 revenue at $54.1 billion, AstraZeneca remains on pace to achieve its $80 billion revenue target by 2030. Its continued growth in high-margin therapeutic areas like oncology and a rich pipeline of clinical programs are central to this trajectory.
For investors, AstraZeneca’s Q1 results reinforce its position as a long-term growth story in the biopharmaceutical sector. Earnings momentum, global diversification, and pipeline success suggest resilience, even amid geopolitical and regulatory uncertainties.
