Daiichi Sankyo Company (4568) Q4 2026 earnings summary

Executive summary

• FY 2025 revenue rose 12.6% year-on-year to JPY 2,123.0 billion, driven by global oncology growth, especially ENHERTU/Enhertu and Datroway, and favorable foreign exchange effects.

• Core operating profit increased 15.1% to JPY 360.0 billion, but operating profit fell 31.0% to JPY 229.1 billion due to significant one-time/temporary expenses, including CMO compensation and site-related costs.

• Profit attributable to owners declined 12.1% to JPY 259.9 billion.

• The sixth five-year business plan (FY 2026–2030) targets revenue over JPY 3 trillion and operating profit above JPY 600 billion by FY 2030, with a focus on oncology and breakthrough technologies.

• Major R&D progress in ADCs, with multiple regulatory approvals and clinical milestones for ENHERTU/Enhertu and Datroway.

Financial highlights

• Revenue up JPY 236.8 billion year-on-year (+12.6%), with strong contributions from ENHERTU/Enhertu (+JPY 145.5 billion) and Datroway (+JPY 46.2 billion).

• SG&A expenses rose JPY 134.8 billion, R&D up JPY 29.3 billion, and cost of sales increased JPY 25.6 billion.

• Operating profit impacted by JPY 149.9–153.0 billion in one-time/temporary expenses, mainly CMO compensation, plant impairment, and restructuring.

• Dividend per share for FY 2025 set to rise by JPY 18 to JPY 78; FY 2026 forecasted at JPY 100.

• Share repurchase of JPY 91.8 billion completed, with all shares to be canceled.

Outlook and guidance

• FY 2026/2027 revenue forecast to increase 7.4% to JPY 2,280.0 billion, driven by further ENHERTU/Enhertu and Datroway growth.

• Core operating profit expected to rise 27.5% to JPY 360.0 billion; operating profit to reach JPY 315.0 billion.

• Dividend policy remains progressive, with adjusted DOE target of 10% or higher.

• Oncology revenue targeted at over JPY 2.3 trillion by FY 2030, with continued leadership in breast and lung cancer.

• Strategic focus on expanding oncology and next-generation breakthrough technologies.