Chugai Pharmaceutical (4519) Q3 2026 earnings summary

Executive summary

• 9M FY2026 core revenue was ¥1,068.1bn (+17.2% YoY); IFRS operating profit was ¥522.6bn (+21.6%) and core operating profit was ¥536.1bn (+19.0%).

• Growth reflected higher sales and other revenue, including royalties and one-time income; domestic wholesaler shipments were also brought forward into Q3.

• Results were tracking ahead of full-year targets, with management expecting to exceed the forecast.

Financial highlights

• Sales were ¥906.8bn (+14.1% YoY); other revenue was ¥161.3bn (+37.7%), supported by Hemlibra and NEMLUVIO royalties and one-time income.

• Core net income was ¥384.7bn (+20.2%); IFRS net income was ¥375.3bn (+22.8%).

• Cost of sales rose 19.4% to ¥314.3bn; the cost-to-sales ratio increased 1.6 points to 34.7%, reflecting product mix.

• Core R&D expense rose 9.6% to ¥141.2bn; SG&A increased 10.8% to ¥76.9bn, including higher enterprise tax and temporary expenses.

Outlook and guidance

• FY2026 guidance remains unchanged: revenue ¥1,345bn, core operating profit ¥670bn, core net income ¥485bn and core EPS ¥295.

• Nine-month progress was 79.4% for revenue, 80.0% for operating profit, 79.3% for net income and 79.2% for EPS; sales progress was 82.4%.

• Hemlibra sales were expected near forecast; Actemra was expected to exceed its ¥130.8bn forecast by more than ¥10bn, and exports to Roche were expected to exceed forecast.

• FY2026 dividend forecast was ¥132 per share, with a core dividend payout ratio of 44.7%.