Eisai (4523) Q1 2026 earnings summary

Executive summary

• Revenue increased 7% year-over-year to ¥202.7 billion, with operating profit up 55%, driven by strong growth in Alzheimer's and insomnia treatments and cost efficiencies.

• Major product Leqembi saw revenue surge over 269% year-over-year globally, with notable growth in China and launches in new markets.

• Acquisition of EcoNaviSta completed, expanding dementia care platform capabilities.

• Questions raised about maintaining ARIA safety advantage over competitors, especially with evolving dosing schedules.

• China sales target for Lacanbi set at 1.8 billion for the remainder of the year, considered low for the next three quarters.

Financial highlights

• Q1 FY2025 revenue was ¥202.7B, up 7% year-over-year; operating profit reached ¥20.7B, up 55% year-over-year.

• Gross profit margin remained at 79%; R&D expenses decreased 7% year-over-year, and SG&A expenses were flat.

• Net profit attributable to owners was ¥14.5B, up 37% year-over-year.

• Basic EPS was ¥51.35, compared to ¥36.95 in the prior year period.

• Free cash flow was an outflow of ¥8.2 billion.

Outlook and guidance

• FY2025 revenue forecast is ¥790B, with operating profit projected at ¥54.5B and EPS at ¥147.20, both essentially flat or slightly down.

• Dividend forecast maintained at ¥160 per share.

• Guidance assumes stable FX rates and notes risks from tariffs, currency, and global economic conditions.