Chugai Pharmaceutical (4519) Q2 2026 earnings summary

Executive summary

• Revenue for H1 FY 2026 rose 14.7% year-over-year to JPY 663.3 billion, driven by strong domestic and overseas sales, and significant growth in other revenue from one-time and royalty income.

• Core operating profit reached JPY 329.1 billion, up 21% year-on-year, and net income after tax was JPY 238.4 billion, up 23.2%.

• Eight regulatory applications were filed in Japan, with expectations for a record number of filings this year, and two Phase 3 studies for NXT007 were initiated.

• Key pipeline progress includes new launches for NEMLUVIO and Foundayo, and strong performance from Hemlibra.

• Significant one-time and royalty income contributed to overall growth.

Financial highlights

• Revenue for H1 FY 2026 was JPY 663.3 billion, up 14.7% year-on-year; sales reached JPY 566.5 billion (+10.8% YoY), with domestic sales up 6.5% and overseas sales up 14.1%.

• Core operating profit was JPY 329.1 billion (+21% YoY); net income after tax was JPY 238.4 billion (+23.2% YoY).

• Other revenue increased by JPY 29.8 billion, mainly from one-time and royalty income; other revenue surged 44.5% YoY to JPY 96.8 billion.

• Cost of sales increased 11.8% to JPY 195.9 billion; cost-to-sales ratio rose to 34.6%.

• EPS increased to JPY 144.84 (+23.2% YoY); free cash flows were JPY 227.0 billion (+84.9% YoY).

Outlook and guidance

• On track to achieve full-year forecasts, with H1 progress at 49.3% of revenue, 49.1% of operating profit, and 49.2% of net income targets.

• Full-year 2026 revenue forecast is JPY 1,345.0 billion (+6.9%), core operating profit JPY 670.0 billion (+7.5%), and core net income JPY 485.0 billion (+7.5%).

• Core EPS forecast is JPY 295.00 (+7.7%), with a core dividend payout ratio of 44.7%.

• No revision to guidance at this stage, but performance is trending above plan.

• Expect continued growth from new product launches and expanded indications.