Otsuka (4578) Q2 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 rose 12.8% year-over-year to ¥1,332.4 billion, with business profit up 17.3% to ¥280.6 billion, driven by strong pharmaceutical and nutraceutical sales and new product launches.

• Net profit increased 24.3% to ¥215.6 billion, with all segments contributing to growth.

• Upward revision of full-year FY2026 guidance: revenue now expected at ¥2,725 billion and business profit at ¥470 billion, reflecting robust first-half performance.

• Growth was led by global pharmaceutical products (REXULTI, LONSURF, VOYXACT), higher royalty income, and nutraceutical gains in women's health and healthier life categories.

• Acquisition of Transcend Therapeutics, Inc. completed in June 2026, adding TSND-201 (methylone) to the pipeline for PTSD treatment.

Financial highlights

• Gross profit for H1 FY2026 was ¥966,481 million, up from ¥855,341 million year-over-year.

• Pharmaceutical revenue grew 14.1% to ¥951.6 billion, nutraceutical revenue up 8.7% to ¥300.1 billion.

• Basic earnings per share increased to ¥409.07 from ¥326.12 year-over-year.

• Cash and cash equivalents at period end were ¥469,548 million, down ¥65,097 million from December 2025.

• Foreign exchange contributed positively to revenue and profit.

Outlook and guidance

• FY2026 full-year revenue forecast revised upward by ¥205 billion to ¥2,725 billion; business profit forecast raised by ¥115 billion to ¥470 billion.

• Net profit forecast increased by ¥90 billion to ¥355 billion; basic EPS projected at ¥675.47.

• Guidance reflects strong pharmaceutical and nutraceutical performance, new product launches, and higher R&D investment.