Astellas Pharma (4503) Q1 2027 earnings summary

Executive summary

• Q1 FY2026 revenue rose 26.7% year-over-year to ¥640.9 billion, driven by strong growth in strategic brands and expansion of XTANDI sales, with core operating profit up 55.6% to ¥221.4 billion and margin rising to 34.5% (+6.4ppt YoY), aided by favorable FX impacts.

• Profit attributable to owners of the parent more than doubled to ¥141.8 billion, with basic earnings per share up 107.1% to ¥79.15.

• Strategic brands, including PADCEV, IZERVAY, VYLOY, VEOZAH, and XOSPATA, delivered strong sales momentum, with PADCEV and IZERVAY showing 36% and 70% YoY growth, respectively.

• Pipeline advanced with multiple regulatory approvals and filings for PADCEV in muscle-invasive bladder cancer (MIBC), and significant progress in Phase 3 studies for VYLOY and other assets.

Financial highlights

• Q1 revenue reached ¥640.9B, up ¥135.1B (+26.7%) YoY, with FX contributing ¥60.0B.

• Core OP was ¥221.4B (+55.6% YoY), with a margin of 34.5%. Operating profit and net profit more than doubled YoY.

• Gross profit increased 26.1% YoY to ¥518.2B; comprehensive income surged 426.2% to ¥183.6B.

• SG&A expenses (excluding US XTANDI co-promote fee) increased 10.1% YoY, but held flat excluding FX impact; R&D expenses rose 14% YoY, mainly due to pipeline investments.

• Free cash flow for Q1 was ¥17.2B, with cash flows from operating activities at ¥86.5B.

Outlook and guidance

• Strong momentum expected to continue throughout FY2026, with full-year revenue forecast at ¥2,220B (+3.8% YoY) and core OP at ¥620B (+11.6%).

• Core profit forecasted at ¥460.0B (+8.4%), and basic core EPS at ¥256.77.

• Dividend per share forecast raised to ¥80.00 for FY2026.

• FX sensitivity: every ¥1 depreciation in USD or EUR adds approximately ¥8.1B and ¥3.8B to revenue, respectively.

• Increased investments anticipated from Q2 onward, aligned with Phase 3 initiations and patient enrollment.