Astellas Pharma (4503) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue of JPY 2,139.2 billion in FY2025, up 11.9% year-on-year, with core operating profit at JPY 555.7 billion, up 41.6% year-on-year, driven by double-digit growth in Strategic Brands and robust cost optimization.

• Strategic Brands, including PADCEV, IZERVAY, VYLOY, VEOZAH, and XOSPATA, delivered over JPY 143.9 billion (43%) year-on-year growth, with PADCEV and IZERVAY showing particularly strong momentum.

• Pipeline advanced with three new proof-of-concept achievements, phase III initiations, and in-licensing of promising assets.

• Profit attributable to owners of the parent surged 474.5% to JPY 291.5 billion, with basic earnings per share at JPY 162.77.

• Comprehensive income increased 819.4% to JPY 449.5 billion.

Financial highlights

• Revenue: JPY 2,139.2 billion (+11.9% YoY); Core OP: JPY 555.7 billion (+41.6% YoY); OP: JPY 382.6 billion; Net profit: JPY 291.6 billion.

• Core OP margin rose to 26%, up 5.5 percentage points YoY; gross profit grew 10.7% to JPY 1,730.8 billion.

• SG&A expenses (ex-FX) rose 2.6% YoY to JPY 860.3 billion, but cost optimization offset increases.

• R&D expenditure (ex-FX) decreased 3.8% YoY to JPY 314.8 billion due to cost optimization and completion of large studies.

• Free cash flow increased to JPY 493.5 billion, and equity ratio improved to 51.3%.

Outlook and guidance

• FY2026 revenue forecasted at over JPY 2.2 trillion (+3.8% YoY), with core OP expected to exceed JPY 600 billion (+12% YoY), and core OP margin projected at 27.9%.

• Strategic Brands, especially PADCEV, IZERVAY, and VYLOY, expected to drive growth, offsetting declines in XTANDI.

• SG&A expenses forecasted at JPY 800 billion, down JPY 60.3 billion YoY; R&D expenses to rise to JPY 355 billion (+JPY 42.2 billion YoY).

• Dividend per share forecasted at JPY 80, up JPY 2.

• Anticipates double-digit growth for Strategic Brands, with total sales expected to reach JPY 610 billion (+27% YoY).