Eisai (4523) Q2 2026 earnings summary

Executive summary

• Revenue and profits increased year-over-year, driven by strong growth in the pharmaceutical business, especially from LEQEMBI, LENVIMA, and DAYVIGO, with organic business as the main driver.

• Operating profit rose 23.6% year-over-year to ¥34.4 billion, supported by effective cost control and declining R&D expenses after the peak of LEQEMBI clinical studies.

• Comprehensive income for the period was ¥37.3 billion, a significant turnaround from a loss in the prior year.

• No revision to the full-year forecast, maintaining confidence in achieving ¥54.5 billion operating profit, with further R&D investments and structural reforms expected.

• Major investments continue in next-generation neurology projects and structural reforms in Europe.

Financial highlights

• Consolidated revenue for April–September 2025 was ¥400.0 billion, up 3.9% year-over-year; pharmaceutical business revenue grew 5.4% to ¥393.3 billion.

• Gross profit margin was 78.0%, with gross profit at ¥311.9 billion.

• R&D expenses were 18.9% of revenue, kept below 20%, and decreased 7.6% year-over-year to ¥75.5 billion.

• Operating profit margin improved to 8.6%.

• EPS rose 14.8% year-over-year to ¥87.37.

Outlook and guidance

• Full-year revenue forecast is ¥790.0 billion, with 50.6% progress achieved in the first half; LEQEMBI forecast remains at ¥76.5 billion.

• No change to the full-year operating profit forecast of ¥54.5 billion, with most profit expected from organic business.

• Earnings per share for FY2025 is projected at ¥147.20.

• Confident in achieving ROE of 8% next year, aiming for double-digit ROE in the future.

• Profit attributable to owners of the parent for FY2025 is forecast at ¥41.5 billion (down 10.6%).