Otsuka (4578) Q2 2026 earnings summary

Executive summary

• Revenue for H1 FY2026 rose 12.8% year-over-year to ¥1,332.4 billion, with business profit up 17.3% to ¥280.6 billion, driven by strong pharmaceutical and nutraceutical sales and new product launches.

• Profit attributable to owners of the company grew 24.3% to ¥215.6 billion.

• Growth was led by global pharmaceutical products (REXULTI, LONSURF, VOYXACT), higher royalty income, and expansion in nutraceuticals.

• Entering a new phase of growth with stable performance in existing businesses and emerging next-generation growth drivers.

• Mid to long-term strategy focuses on sustainable growth, robust earnings foundation, and diversified growth drivers.

Financial highlights

• Consolidated revenue for H1 FY2026 rose 12.8% year-over-year to ¥1,332.4 billion; business profit up 17.3% to ¥280.6 billion; net profit increased 24.3% to ¥215.6 billion.

• All profit items reached record highs for the first half; business profit exceeded plan with a 162.2% progress rate.

• Pharma revenue increased 14.1% to ¥951.6 billion, driven by strong global product sales and higher royalty income; nutraceutical revenue up 8.7% to ¥300.1 billion.

• Gross profit for the period was ¥966.5 billion, up from ¥855.3 billion year-over-year.

• Foreign exchange contributed positively to revenue and profit.

Outlook and guidance

• Full-year consolidated revenue forecast revised up to ¥2,725 billion; business profit forecast at ¥470 billion; net profit forecast at ¥355 billion.

• Pharma revenue expected at ¥1,934 billion, nutraceuticals at ¥623.5 billion for FY2026.

• Business profit for FY2026 forecast at ¥470 billion, exceeding 2025 results on a constant-currency basis.

• Basic EPS projected at ¥675.47.

• Guidance reflects strong pharmaceutical and nutraceutical performance, new product launches, and higher R&D investment.