Are CSL shares a buy amid the company’s $500 million cost-cutting plans?

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock CSL Ltd (ASX: CSL) closed yesterday trading for $182.14.

CSL shares remain down a sharp 35.32% in 2025. Taking a tiny bit of the sting out of those losses, the ASX 200 stock also trades on an unfranked 2.5% trailing dividend yield.

As you’re likely aware, most of the share price losses followed the decidedly underwhelming release of the company’s full-year FY 2025 results on 19 August.

Among the factors that saw investors overheating their sell buttons on the day, the company revealed plans to spin off CSL’s Seqirus segment – one of the world’s largest influenza vaccine businesses – into a separate ASX-listed company.

That plan has since been put on hold until conditions in the slumping United States influenza vaccine market improve. But it remains on the table.

Which brings us back to our headline question.

Are CSL shares a good buy amid the cost-cutting program?

MPC Markets’ Mark Gardner recently ran his slide rule over the ASX 200 biotech stock (courtesy of The Bull).

“Uncertainty continues to surround this biopharmaceutical giant after the share price plunged following its 2025 results,” said Gardner, who has a hold recommendation on CSL shares.

“It recently cut revenue and profit growth forecasts for fiscal year 2026. Its Seqirus influenza vaccines division is under pressure from a decline in vaccination rates in the US,” he added.

Indeed, on 28 October, CSL shares plunged 15.9% when management reduced FY 2026 guidance.

On 19 August, CSL had forecast that it would achieve full-year revenue growth (in constant currency) in the range of 4% to 5%. And guidance for net profit after tax before amortisation (NPATA) and excluding non-recurring restructuring costs was forecast to increase between 7% to 10%.

Then on 29 October, investors punished the stock when management reduced full-year revenue growth guidance to the range of 2% to 3% as well as cutting NPATA growth guidance to 4% to 7%.

But in issuing his hold recommendation, Gardner sees light at the end of the tunnel.

He concluded:

Plans to reduce fixed costs and enhance efficiencies were initially earmarked to save more than $500 million by fiscal year 2028. The company is undertaking a buy-back program of up to $750 million in fiscal year 2026.

CSL shares have fallen from $271.32 on August 18 to trade at $178.82 on November 19.

At these levels, we suggest holding CSL and monitor performance of a company that has a solid track record of performance over the longer term.

The post Are CSL shares a buy amid the company’s $500 million cost-cutting plans? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.