Eisai (4523) Q4 2026 earnings summary

Executive summary

• Fiscal year 2025 revenue reached a record JPY 825.4 billion, up 4.6% year-on-year, driven by strong growth in pharmaceutical business, especially 3L products (LEQEMBI, DAYVIGO, LENVIMA), despite the absence of prior-year one-time gains.

• Operating profit declined 18.8% to JPY 44.1 billion due to the absence of one-time income from out-licensing/divestitures and higher structural reform costs in Europe.

• Core operating profit, excluding temporary items, more than doubled to JPY 50.1 billion (+110.7% YoY), reflecting solid organic business performance.

• Strategic focus remains on organic growth, pipeline enhancement, and cost control, with proactive investments in oncology and neurodegenerative disease areas.

• Comprehensive income surged 143.9% to JPY 105.3 billion, mainly due to favorable exchange differences.

Financial highlights

• Gross profit increased 2.2% year-on-year to JPY 634.2 billion; gross margin declined to 76.8%.

• R&D expenses decreased 7.6% to JPY 158.7 billion as LEQEMBI clinical trial costs peaked; SG&A expenses rose 6.7% to JPY 435.3 billion, mainly due to LEQEMBI investment and European restructuring.

• Profit for the year was JPY 38.6 billion, down 17% year-on-year; EPS dropped 16.5% YoY to 136.78 yen.

• Net cash from operating activities was JPY 61.3 billion, up JPY 31.2 billion year-on-year; cash and cash equivalents at year-end were JPY 245.4 billion.

• Dividend maintained at JPY 160 per share; payout ratio 117.0%.

Outlook and guidance

• FY 2026 revenue is projected at JPY 883.5 billion (+7% YoY), with operating and core operating profit targeted at JPY 70 billion each (+58.6% YoY); profit attributable to owners forecast at JPY 52.3 billion (+35.6%).

• LEQEMBI revenue expected to grow 63.1% to JPY 143.5 billion; DAYVIGO to JPY 73.5 billion (+14.3%); LENVIMA stable at JPY 345.0 billion.

• R&D expenses projected to rise 3.4% to JPY 164.0 billion, with continued investment in key projects.

• Adjusted ROIC target is 8.7% for FY 2026, aiming for 8-10% medium to long term.

• EPS expected to rise to 185.00 yen (+35.3% YoY).