Astellas Pharma (4503) Q1 2027 earnings summary

Executive summary

• Revenue grew 27% year-on-year to ¥640.9 billion, and core operating profit rose 56% to ¥221.4 billion, both reaching record highs for the first quarter, driven by strong performance of strategic brands and disciplined cost optimization, aided by favorable FX impacts.

• Strategic brands PADCEV, IZERVAY, VYLOY, VEOZAH, and XOSPATA delivered robust growth, with PADCEV and IZERVAY sales up 36% and 70% year-on-year, respectively.

• Pipeline advanced with multiple regulatory approvals and filings for PADCEV in muscle-invasive bladder cancer, and significant progress in Phase 3 studies for VYLOY and other assets.

• Profit attributable to owners of the parent more than doubled to ¥141.8 billion, with basic earnings per share up 107.1% to ¥79.15.

Financial highlights

• Q1 revenue reached ¥640.9 billion (+26.7% year-on-year), with FX contributing ¥60.0 billion.

• Core operating profit was ¥221.4 billion (+55.6% year-on-year), with a margin of 34.5%.

• Operating profit and net profit more than doubled year-on-year; comprehensive income surged 426.2% to ¥183.6 billion.

• SG&A expenses rose 9.2% to ¥215.1 billion, and R&D expenses increased 14% to ¥81.7 billion.

• Revenue increased across all regions, notably 28.5% in the US and 60.5% in International Markets.

Outlook and guidance

• Full-year FY2026 revenue forecast is ¥2,220.0 billion (+3.8% year-on-year), with core operating profit expected at ¥620.0 billion (+11.6%).

• Strategic brands expected to further drive revenue and profit growth in subsequent quarters.

• Increased R&D investment anticipated as clinical trials progress, balanced with continued cost discipline.

• Dividend per share forecast raised to ¥80.00 for FY2026.

• FX sensitivity: every ¥1 depreciation in USD or EUR adds approximately ¥8.1 billion and ¥3.8 billion to revenue, respectively.