Astellas Pharma (4503) Q3 2026 earnings summary

Executive summary

• Achieved double-digit revenue growth (+10.2% YoY) and significant core operating profit increase (+48.6% YoY), driven by strong performance of strategic brands, especially PADCEV, IZERVAY, VYLOY, VEOZAH, and XTANDI, and cost optimization initiatives.

• Full-year forecasts for revenue, core operating profit, and operating profit were revised upward, reflecting robust business performance and continued momentum.

• Pipeline advanced with key regulatory approvals and positive clinical trial results for PADCEV, VYLOY, ASP3082, and ASP2138, supporting future growth.

• Gross profit increased 9.0% year-over-year to ¥1,286.6 billion.

Financial highlights

• Revenue for Q3 YTD FY2025 reached ¥1,601.3 billion, up 10.2% year-over-year; core operating profit rose to ¥442.1 billion (+48.6% YoY), with margin up to 27.6% (+7.1ppt YoY).

• Operating profit was ¥333.9 billion, and net profit was ¥248 billion, both significantly higher year-over-year.

• SG&A expenses decreased 1.0% year-over-year to ¥625.6 billion, aided by cost optimization and favorable FX impact; SG&A ratio improved by 2.7ppt YoY to 27.0%.

• R&D expenses fell 12.9% year-over-year to ¥218.9 billion, reflecting cost optimization and lower clinical development costs; R&D ratio reduced to 13.7%.

• Free cash flow surged to ¥310.8 billion (Q3 YTD), up from ¥7.0 billion YoY; cash and equivalents increased to ¥254.3 billion.

Outlook and guidance

• Full-year FY2025 revenue forecast raised to ¥2,100 billion (+3.4% YoY); core operating profit forecast increased to ¥520 billion (+6.1% YoY), with margin expected to rise by 4.2ppt YoY to 24.8%.

• Full basis profit forecast for FY2025 is ¥250 billion, up 38.9% year-over-year.

• SG&A and R&D expenses expected to remain stable or decrease as a percentage of revenue.

• Continued growth expected for strategic brands and further cost optimization targeted through FY2027.

• No impairment indication as of Feb 2026.