Santen Pharmaceutical (4536) Q2 2026 earnings summary

Executive summary

• Q2 FY2025 revenue was JPY 137.9 billion, down 5.8% year-over-year, with core operating profit at JPY 22.3 billion, down 25.0% year-over-year, and net profit attributable to owners at JPY 13.9 billion, down 25.7%.

• Results are on track with the FY2025 outlook and full-year projections, with stronger contributions expected in the second half and steady progress toward FY2026 targets.

• Key product launches, resumed shipments, and strategic partnerships are expected to support future growth.

Financial highlights

• Gross profit margin was 56% in Q2 FY2025, slightly down from 57% in Q2 FY2024; gross profit fell 6.9% year-over-year to JPY 77.2 billion.

• SG&A expenses increased 0.7% year-over-year, while R&D expenses rose 13.0% to JPY 12.4 billion due to pipeline advancement.

• EBITDA for Q2 FY2025 was JPY 27.1 billion, down 21.0% year-over-year; basic EPS decreased from JPY 52.88 to JPY 41.76.

• Cash flows from operating activities were JPY 13.6 billion, down from JPY 28.3 billion a year earlier; cash and cash equivalents at period-end were JPY 63.6 billion.

Outlook and guidance

• FY2025 revenue forecast maintained at JPY 294.0 billion, a 2.0% decrease year-over-year; FY2026 revenue forecast is JPY 294.0 billion (+2.0% year-over-year).

• Core operating profit forecast at JPY 54.0 billion, down 9.1% year-over-year for FY2025; FY2026 forecast is JPY 54.0 billion (+9.1%).

• Net profit forecast at JPY 33.5 billion, down 6.6% year-over-year for FY2025; FY2026 forecast is JPY 34.0 billion (+6.2%).

• ROE expected to remain at 12%, with EPS forecast at JPY 103; share cancellation factored into EPS guidance.