Takeda Pharmaceutical Company (4502) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 results were in line with expectations, with revenue at JPY 1,219.9 billion (+10.2% actual FX, flat at CER), and core operating profit at JPY 358.9 billion (+11.5% actual, flat at CER).

• Core EPS was JPY 154, down 11.8% at CER but up 1.5% year-over-year; reported EPS was JPY 72.

• Performance was supported by growth in core in-line brands and new launches, offsetting mature portfolio declines and LOE impacts.

• Transformation program savings are funding investments in new launches and R&D.

• Launch preparations for ORZEYFUL, rusfertide, and zasocitinib are progressing, with regulatory milestones achieved and further approvals expected.

Financial highlights

• Q1 revenue was JPY 1,219.9 billion (+10.2% YoY), with FX adding JPY 118.2 billion; core revenue flat at CER.

• Core operating profit was JPY 358.9 billion (+11.5% YoY actual, flat at CER); reported operating profit was JPY 201.4 billion.

• Net profit attributable to owners was JPY 113.2 billion (-8.9% YoY), impacted by higher tax and restructuring costs.

• Adjusted free cash flow dropped 63.9% to JPY 68.6 billion, mainly due to working capital and lower divestiture proceeds.

• Gross margin improved to 66.7% from 65.2% YoY.

Outlook and guidance

• FY2026 revenue forecast is JPY 4,640.0 billion (+3.0% YoY); core operating profit forecast JPY 1,160.0 billion (-1.1% YoY); core EPS JPY 472 (-8.7% YoY).

• Adjusted free cash flow forecast is JPY 650–750 billion; annual dividend per share planned at JPY 204.

• Management guides for a low-single-digit decline in core revenue and 5–8% decline in core operating profit at CER.

• Focus remains on deleveraging, capital efficiency, and maintaining strong free cash flow.