Daiichi Sankyo Company (4568) Q4 2026 earnings summary

Executive summary

• FY 2025 revenue rose 12.6% year-on-year to JPY 2,123 billion, driven by strong oncology growth, especially ENHERTU and DATROWAY, and favorable foreign exchange effects.

• Core operating profit increased 15.1% to JPY 360 billion, but operating profit fell 31% to JPY 229.1 billion due to significant one-time expenses, including CMO compensation and plant-related costs.

• Profit attributable to owners declined 12.1% to JPY 259.9 billion, while total comprehensive income grew 6.9% to JPY 309.9 billion.

• The sixth five-year business plan targets revenue over JPY 3 trillion and operating profit above JPY 600 billion by FY 2030, focusing on oncology and new drug discovery technologies (BGTs).

• Major R&D progress in antibody-drug conjugates (ADCs), with multiple regulatory approvals and clinical milestones for ENHERTU and DATROWAY.

Financial highlights

• Revenue up JPY 236.8 billion year-on-year, with strong contributions from ENHERTU (+JPY 145.5 billion) and DATROWAY (+JPY 46.2 billion); core operating profit up JPY 47.1 billion.

• Operating profit fell 31% to JPY 229.1 billion due to temporary expenses; profit before tax was JPY 263.4 billion.

• Dividend per share for FY 2025 increased by JPY 18 to JPY 78; FY 2026 forecast is JPY 100 per share.

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

• Cash and cash equivalents at year-end: JPY 489.0 billion, down from JPY 639.8 billion.

Outlook and guidance

• FY 2026 revenue forecast to rise 7.4% to JPY 2.28 trillion, driven by further ENHERTU and DATROWAY growth; core operating profit expected to increase 27.5% to JPY 360 billion.

• Operating profit expected to rise 37.5% to JPY 315 billion; profit attributable to owners projected at JPY 260 billion.

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

• 5-year business plan targets revenue >JPY 3 trillion, operating profit >JPY 600 billion, and EPS >JPY 260 by FY 2030.

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