AstraZeneca results put second-quarter revenue at $15.4bn, in line with forecasts, and the company kept full-year guidance unchanged. Shares rose 1.2% in early trading as investors weighed steady sales against weaker first-half cash generation.
AstraZeneca revenue holds at $15.4bn
$15.4bn in second-quarter revenue came despite only 5% underlying growth when exchange rate impacts are stripped out. Oncology, Respiratory and Rare Disease more than offset weakness elsewhere in the therapeutic mix, keeping the top line moving even as growth slowed a little from the pace some readers may have expected after earlier momentum.
$5.2bn in core operating profit rose 10%, and core operating margins increased two percentage points to 34%. Revenue growth and improved product profitability more than offset rising Research & Development and other costs, which is the cleaner read-through in this update: the business is still turning more of each sales dollar into operating profit even while spending stays elevated.
Hargreaves Lansdown watches cash pressure
$4.9bn in first-half free cash flow was down 18%, while net debt increased from $25.3bn to $26.9bn. That combination matters because it shows the earnings line and the cash line are moving in different directions: profit expanded, but less cash was left after spending and financing needs.
1.2% early-trading gains in the shares suggest the market focused first on the in-line revenue and unchanged outlook rather than the weaker cash conversion. AstraZeneca also said it has had 30 approvals in major territories since last year's results were published, which keeps the portfolio-building story alive behind the quarterly numbers.
2030 targets still in view
$80bn of annual revenue and a mid-thirties operating margin remain the 2030 targets, with AstraZeneca still not selling any next-generation weight management products. The practical question for shareholders is whether the current mix of launches and approvals can keep supporting the revenue path while free cash flow stops slipping and debt moves back the other way.
