AstraZeneca is regaining momentum with strong earnings, positive trial results, and easing tariff concerns, pushing it closer to a potential £200 billion valuation this year. As the FTSE 100’s largest company, its growth supports the wider index and highlights the value of focusing on high-quality, innovative businesses for long-term investors.
AstraZeneca, the FTSE 100’s largest company, is powering towards a potential £200 billion valuation this year.1 The pharmaceutical giant is regaining momentum as tariff concerns fade, with robust earnings and promising clinical trial results reigniting investor confidence.
What’s driving AstraZeneca’s recent growth?
- Pipeline momentum: Positive trials in new treatment for high blood pressure Baxdrostat, as well as multiple new regulatory approvals across oncology, cardiovascular and rare disease therapies.
- Strong financial results: Total revenue was up 9% in H1 2025 to £21.3 billion, operating profit rose 23% to £5.46 billion, and pre-tax profit rose 26% to £4.96 billion.
- Regulatory clarity in China: Investigations into the company’s tax and insurance practices are nearing resolution, with fines expected to be minimal.
- Tariff risk under control: Reassurance on the impact of US trade policy, with tariffs seen as manageable.
If AstraZeneca continues to post strong earnings results and investors continue their vote of confidence, hitting the £200 billion valuation before the end of the year could be within reach.1
Why does this matter?
As the FTSE 100’s largest company, solid growth from mega-cap stocks like AstraZeneca is enough to have a positive impact on the whole index.
Although one stock's growth doesn’t indicate a trend for other stocks in the FTSE 100, it does show us how strong innovation and earnings (even in the face of adversity) can continuously drive value and resilience.
For long-term investors, AstraZeneca’s rally reinforces the case for focusing on high-quality companies with a history of long-term growth often found in market-cap weighted indexes like the FTSE 100 or S&P 500.
Where does Chip come in?
With Chip, you can invest in index funds like the FTSE 100, which track the price of huge companies like AstraZeneca. Companies move in and out of the underlying index based on their market cap (value of total shares), so you can be sure you’re always investing in the 100 most valuable stocks.
Open a Stocks & Shares ISA or General Investment Account, choose your funds, and you’re away!
When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than your original investment.
Important to know: When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than your original investment.