AZN Q2 Earnings and Sales Beat, Key Drugs Offset Generic Pressure

AstraZeneca AZN reported second-quarter 2026 core earnings of $2.63 per share, which beat the Zacks Consensus Estimate of $2.50. Earnings rose 21% year over year on a reported basis and 18% at constant exchange rate (CER).Total revenues of $15.38 billion rose 6% on a reported basis and 5% at CER, beating the Zacks Consensus Estimate of $15.31 billion.All growth rates mentioned below are on a year-over-year basis and at CER.AZN shares began trading on the NYSE on Feb. 2. Earlier, in the United States, investors traded AstraZeneca through a different structure called American Depositary Shares on Nasdaq.AZN’s Product Sales & Alliance RevenuesProduct sales increased 4% to $14.51 billion.Alliance revenues rose 33% to $874 million, driven by continued revenue growth from partnered medicines. Alliance revenues include royalties and profit share from partnered medicines, such as Enhertu and Tezspire, in geographies where its partner books product sales.AZN’s Key Oncology Drugs Drive Growth but Miss EstimatesHere, we have discussed AstraZeneca’s total drug revenues by including Alliance and Collaboration revenues in each revenue figure.In Oncology, Tagrisso recorded revenues of $1.94 billion, up 6% year over year, driven by strong demand across all indications and key regions, partly offset by a more competitive environment in China in a slowing EGFRm TKI market. Tagrisso sales missed the Zacks Consensus Estimate of $2.01 billion.Lynparza's total revenues declined 3% to $829 million due to unfavorable channel mix and inventory destocking as well as the impact of generic launches in China and volume-based procurement (VBP) implementation. The drug’s sales missed the Zacks Consensus Estimate of $832 million.AstraZeneca markets Lynparza in partnership with Merck MRK. During the quarter, the company did not record any milestone payment from partner Merck related to the drug.Imfinzi generated sales of $1.85 billion in the quarter, up 27%, driven by strong demand growth across all regions from existing indications and new launches. Imfinzi sales, however, missed the Zacks Consensus Estimate of $1.91 billion. Sales of Calquence rose 16% to $1.02 billion in the quarter. Breast cancer drug Truqap generated $233 million in second-quarter 2026 revenues, up 37% year over year, driven by strong demand in second-line biomarker-altered metastatic breast cancer.Newly approved drug Datroway, for which it has a partnership with Daiichi Sankyo, recorded revenues of $55 million in the second quarter compared with $43 million in the previous quarter.Year to date, AstraZeneca stock has lost 7.9% against the industry’s 1.8% growth.Image Source: Zacks Investment ResearchAZN’s CVRM Segment PerformanceIn CVRM, Farxiga recorded product sales of $1.80 billion, down 19%, due to loss of exclusivity in the United States, generic competition in multiple international markets, including China, the United Kingdom and Japan, and the impact of China's VBP program, partly offset by underlying demand growth in Europe. Farxiga sales, however, marginally beat the Zacks Consensus Estimate of $1.803 billion.Brilinta/Brilique sales totaled $80 million in the reported quarter, down 63%, due to the generic launch in Europe and the United States.Wainua recorded $70 million in product sales during the quarter, up 58% year over year, driven by strong demand growth in transthyretin amyloid polyneuropathy and geographic expansion.AZN’s R&I Segment PerformanceIn R&I, Symbicort sales declined 8% to $671 million due to increasing generic competition. The drug’s sales missed the Zacks Consensus Estimate of $707 million.Fasenra recorded sales of $570 million in the quarter, up 13% year over year, driven by strong demand growth and market share gains. The recent launch for the EGPA indication also benefited sales in some countries. The drug’s sales beat the Zacks Consensus Estimate of $563 million.Breztri recorded sales of $346 million, up 20% year over year, driven by a consistent share increase in a growing market, partially offset by unfavorable gross-to-net adjustments.Pulmicort sales grew 9% to $120 million in the reported quarter.New product Airsupra generated $50 million in product sales in the quarter, up 18% year over year. The product’s U.S. launch momentum remains strong.New lupus drug Saphnelo recorded sales of $209 million, up 24% year over year, driven by demand growth in the U.S. market and ongoing launches in Europe and the Established RoW.Tezspire recorded total revenues of $390 million, up 45% year over year, driven by demand growth and launch uptake in multiple markets. AstraZeneca has a partnership with Amgen AMGN for Tezspire. Amgen records product sales in the United States, and AstraZeneca records its share of U.S. gross profits as Alliance revenues. AstraZeneca books product sales in markets outside the United States.AZN’s Rare Disease, V&I and Other SegmentIn the Rare Disease portfolio, Soliris sales fell 28% to $389 million due to conversion to Ultomiris and biosimilar erosion in Europe and the United States.Ultomiris revenues amounted to $1.31 billion, up 12%, driven by demand growth across indications, geographic expansions in new markets and continued conversion from Soliris.In Other Medicines, sales of Nexium declined 6% to $234 million.In V&I Therapies, AstraZeneca recorded $79 million in revenues from Beyfortus, including alliance revenues received from partner Sanofi SNY and sales of the manufactured Beyfortus product to Sanofi. Revenues declined 37% year over year due to the partner’s adjustments of inventory levels.AstraZeneca PLC Price, Consensus and EPS Surprise AstraZeneca PLC price-consensus-eps-surprise-chart | AstraZeneca PLC QuoteAZN Reiterates 2026 GuidanceAstraZeneca reconfirmed its financial guidance for 2026.It continues to expect total revenues to grow by a mid-to-high single-digit percentage at CER.Core EPS is expected to increase by a low double-digit percentage at CER.Our Take on AZN’s ResultsAstraZeneca delivered a solid quarter, with earnings and revenues exceeding expectations despite mounting generic pressure across several mature brands. However, sales of key oncology medicines — Tagrisso, Imfinzi and Lynparza — all fell short of consensus estimates. At the same time, continued declines in Farxiga, Brilinta, Symbicort and Soliris highlight the growing impact of patent expiries and biosimilar competition.That said, strong demand for newer growth drivers such as Truqap, Ultomiris, Tezspire and Wainua, along with continued label expansions, helped offset weakness in older products. While AstraZeneca’s diversified portfolio provides stability, future growth will depend on whether its newer medicines can offset the continued decline in older products facing generic competition.AZN’s Zacks RankCurrently, AstraZeneca has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. 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