Eisai (4523) Q3 2026 earnings summary

Executive summary

• Q3 FY2025 revenue rose 3.1% year-on-year to JPY 619.9 billion, driven by strong growth in the pharmaceutical business, especially LENVIMA, DAYVIGO, and LEQEMBI, despite a high prior-year base from one-time payments.

• Operating profit declined 1.7% year-on-year to JPY 54.5 billion due to the absence of one-time outlicensing gains and higher SG&A expenses, but organic business profit contribution doubled.

• Full-year forecast maintained at JPY 790 billion revenue and JPY 54.5 billion operating profit, with steady progress toward targets and 78.5% of revenue and 99.9% of operating profit achieved by Q3.

• Oncology pipeline expanded with in-licensing of Taletrectinib and Serplulimab to strengthen the franchise and enter new cancer areas.

• Profit attributable to owners of the parent fell 8.1% year-on-year to JPY 41.8 billion; EPS was JPY 148.31.

Financial highlights

• Gross profit was JPY 480.7 billion, up 1.6% year-on-year; gross margin was 77.5%, with cost of sales ratio rising to 22.5%.

• R&D expenses decreased 8.5% year-on-year to JPY 114.7 billion, with the R&D expense-to-revenue ratio dropping to 18.5%.

• SG&A expenses increased 4.7% year-on-year to JPY 315.7 billion, mainly from investments in LEQEMBI.

• EPS declined 7.4% year-on-year to JPY 148.31.

• Net cash from operating activities was JPY 57.2 billion, up sharply from the prior year.

Outlook and guidance

• Full-year guidance remains unchanged at JPY 790 billion revenue and JPY 54.5 billion operating profit, despite uncertainties in one-time revenues and new in-licensing deals.

• Profit attributable to owners of the parent is projected at JPY 41.5 billion; EPS forecast is JPY 147.20.

• Dividend forecast is unchanged at JPY 160 per share for FY2025.

• Revenue contributions from new oncology in-licensed assets expected from FY2028.

• Management highlights risks from currency fluctuations, global economic conditions, and regulatory changes.