Eisai (4523) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue rose 7.2% year-on-year to ¥202.7 billion, with operating profit up 54.7% and net profit up 33.2%, driven by strong growth in LEQEMBI, LENVIMA, and DAYVIGO, as well as Alzheimer's and insomnia treatments.

• Structural reforms and efficiency improvements reduced R&D and SG&A expense ratios, supporting higher profitability.

• LEQEMBI achieved double-digit revenue growth in Japan, the US, and China, with global revenue surging up to 369.3% year-on-year.

• LENVIMA maintained top market share in oncology, with global sales up 7% year-on-year and a favorable patent litigation outcome.

• Acquisition of EcoNaviSta completed, expanding dementia care solutions.

Financial highlights

• Gross profit reached ¥160.1 billion, up 7.2% year-on-year, with a stable gross margin of 79% and cost of sales ratio at 21%.

• Operating profit was ¥20.7 billion, up 54.7% year-on-year; net profit attributable to owners was ¥14.5 billion, up 37%.

• Pharmaceutical business revenue reached ¥198.4 billion, up 6% year-on-year; 3L products (LEQEMBI, LENVIMA, DAYVIGO) up 19%.

• Basic EPS was ¥51.35, compared to ¥36.95 in the prior year period.

• Net cash position at ¥67.3 billion as of June 2025; equity ratio at 58.8%.

Outlook and guidance

• FY2025 revenue forecast is ¥790 billion, with operating profit projected at ¥54.5 billion and EPS at ¥147.20; guidance is flat year-over-year.

• Dividend forecast maintained at ¥160 per share.

• Targeting 8% ROE by FY2026 through operational efficiency and strategic R&D allocation.

• Guidance assumes stable FX rates and notes risks from tariffs, currency, and global economic conditions.

• Upside revision to guidance may be considered if current growth trends continue.