Takeda Pharmaceutical Company (4502) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue declined 8.4% year-over-year to JPY 1,106.7 billion, mainly due to Vyvanse's loss of exclusivity and FX headwinds, but net profit rose 30.4% to JPY 124.2 billion on lower impairment, restructuring, and operating expenses, as well as divestment gains.

• Growth and launch products represented 50% of revenue and grew 5% at CER in Q1, with higher growth expected in subsequent quarters.

• No change to full-year FY2025 guidance; management expects broadly flat core revenue and operating profit, with continued focus on pipeline execution and capital allocation.

• Pipeline momentum is strong, highlighted by positive phase 3 results for Oveporexant in narcolepsy type 1 and new late-stage trials.

Financial highlights

• Q1 revenue was JPY 1,106.7 billion, down 8.4% year-on-year (or -3.7% at CER); core operating profit was JPY 321.8 billion, down 15.8% year-on-year (11.9% at CER); reported operating profit was JPY 184.6 billion, up 11%.

• Net profit was JPY 124.2 billion, up 30.4% year-on-year; core net profit was JPY 237.0 billion, down 14.4%.

• Core EPS was JPY 151; reported EPS was JPY 79.40, up from JPY 60.71 year-over-year.

• Adjusted free cash flow was JPY 190.1 billion, up 703.6% year-on-year.

• Gross margin decreased to 65.2% from 68.0% year-over-year.

Outlook and guidance

• Full-year FY2025 outlook remains unchanged; revenue forecast is JPY 4,530.0 billion (-1.1% year-on-year), with core operating profit forecast at JPY 1,140.0 billion (-1.9%).

• EPS guidance: 145 yen (reported, +111.8%); 485 yen (core, -1.2%).

• Adjusted free cash flow guidance: JPY 750.0–850.0 billion; annual dividend per share: 200 yen.

• Management guidance at CER is for broadly flat core revenue, core operating profit, and core EPS.

• FY2025 outlook does not reflect potential tariff impacts; company feels well positioned to manage them.