Astellas Pharma (4503) Q4 2026 earnings summary

Executive summary

• Achieved record-high revenue of JPY 2,139.2 billion in FY2025, up 11.9% year-over-year, with core operating profit at JPY 555.7 billion, up 41.6% year-over-year, driven by Strategic Brands and robust cost optimization.

• Strategic Brands, including PADCEV, IZERVAY, VYLOY, VEOZAH, and XOSPATA, delivered over JPY 140 billion year-over-year growth, with PADCEV and IZERVAY showing particularly strong momentum.

• SMT (Sustainable Margin Transformation) initiative improved SG&A ratio by 2.3 percentage points and delivered JPY 25 billion in cost optimization.

• Pipeline advanced with three new POCs, phase III initiations, and licensing of external assets ASP546C and VIR-5500.

• Profit attributable to owners of the parent surged 474.5% to JPY 291.5 billion, with basic earnings per share at JPY 162.77.

Financial highlights

• Revenue: JPY 2,139.2 billion (+11.9% YoY); core operating profit: JPY 555.7 billion (+41.6% YoY); operating profit: JPY 382.6 billion; net profit: JPY 291.6 billion.

• Core operating profit margin rose to 26%, up 5.5 percentage points year-on-year.

• Free cash flow increased to JPY 493.5 billion, and equity ratio improved to 51.3%.

• SG&A expenses (ex-FX) rose 2.6% YoY, but cost optimization offset increases; R&D expenditure (ex-FX) decreased 3.8% YoY.

• Gross profit grew 10.7% YoY to JPY 1,730.8 billion.

Outlook and guidance

• FY2026 revenue forecasted at over JPY 2.2 trillion (+3.8% YoY), with core operating profit expected to exceed JPY 600 billion (+12% YoY), and core OP margin projected at 27.9%.

• SG&A expenses forecasted at JPY 800 billion (down JPY 60.3 billion YoY), with cost optimization of JPY 40 billion planned.

• R&D expenses projected to rise to JPY 355 billion (+JPY 42.2 billion YoY) due to increased phase III investments.

• Dividend per share forecasted at JPY 80, up JPY 2.

• Strategic Brands, especially PADCEV, IZERVAY, and VYLOY, expected to drive growth, offsetting declines in XTANDI.