Astellas Pharma (4503) Q3 2026 earnings summary

Executive summary

• Achieved double-digit revenue growth (+10.2% YoY) and significant core operating profit increase (+48.6% YoY), driven by strong performance of strategic brands and cost optimization initiatives.

• Upward revision of full-year forecasts for revenue, core operating profit, and full operating profit, reflecting robust business performance and continued momentum.

• Strategic brands, including PADCEV, IZERVAY, VYLOY, VEOZAH, and XOSPATA, delivered substantial year-over-year sales growth, with PADCEV and VYLOY as key drivers.

• Pipeline advanced with major regulatory approvals and positive clinical trial results, particularly for PADCEV, VYLOY, ASP3082, and ASP2138.

• Gross profit increased 9.0% year-over-year to ¥1,286.6 billion.

Financial highlights

• Revenue for Q3 YTD FY2025 reached ¥1,601.3 billion, up 10.2% year-over-year; core operating profit rose to ¥442.1 billion, up 48.6% year-over-year, with margin up to 27.6% (+7.1ppt YoY).

• SG&A expenses decreased 1.0% year-over-year to ¥625.6 billion; R&D expenses fell 12.9% year-over-year to ¥218.9 billion, improving R&D ratio to 13.7%.

• Free cash flow surged to ¥310.8 billion (Q3 YTD), up from ¥7.0 billion YoY; cash and equivalents increased to ¥254.3 billion.

• Basic core earnings per share rose 48.6% year-over-year to ¥185.20.

• On a full basis, profit for the period was ¥247.96 billion, reversing a loss of ¥24.15 billion in the prior year.

Outlook and guidance

• Full-year FY2025 revenue forecast raised to ¥2,100 billion, up 3.4% from FY2024; core operating profit forecast increased to ¥520 billion (+6.1% YoY), and core profit to ¥385 billion (+5.5%).

• Core OP margin expected to rise by 4.2 percentage points year-over-year to 24.8%.

• R&D expenses projected at ¥315 billion, with increased late-stage development investments expected from Q4 and FY2026 onward.

• No impairment indication as of Feb 2026.

• Full basis profit forecast for FY2025 is ¥250 billion, up 38.9% year-over-year.