Shionogi & Co (4507) Q2 2027 earnings summary

Executive summary

• H1 FY2026 revenue reached a record ¥350.4bn, up 64.5% YoY; operating profit and profit attributable to owners also set first-half records.

• Growth investments and existing businesses supported stronger results; the edaravone acquisition expanded rare-disease capabilities, while ViiV equity-method earnings increased.

Financial highlights

• H1 revenue was ¥350,377m (+64.5% YoY), operating profit ¥115,244m (+55.8%), core operating profit ¥132,694m (+75.7%) and EBITDA ¥174,556m (+103.4%).

• Profit before tax rose 9.9% to ¥107,257m; profit attributable to owners rose 44.0% to ¥119,546m, with basic EPS of ¥140.47 versus ¥97.55.

• Revenue exceeded the ¥340.0bn forecast; operating profit was ¥115.2bn versus ¥96.0bn forecast, and attributable profit was ¥119.5bn versus ¥108.0bn.

• Operating cash flow was ¥142,166m; investing cash outflow was ¥434,663m, including ¥390,757m for the edaravone acquisition. Cash and equivalents fell ¥332,075m to ¥376,482m.

• Q2 revenue rose 14.5% QoQ to ¥187.1bn; operating margin expanded 2.8 percentage points to 34.2%.

Outlook and guidance

• Full-year guidance increased to revenue ¥720bn, operating profit ¥230bn, profit before tax ¥220.5bn and attributable profit ¥212.5bn; EBITDA guidance rose to ¥336bn.

• Revenue and operating profit forecasts rose ¥20bn and ¥10bn, respectively; overseas subsidiaries/exports and royalty assumptions improved.

• Domestic prescription-drug guidance fell ¥6.7bn to ¥172bn, reflecting acute respiratory infection drug shortfalls and slower Zurzuvae progress; forecast H2 operating profit was reduced ¥9.2bn to ¥114.8bn.

• Forecasts include expected AQNEURSA sales, inventory costs and IntraBio intangible amortization; closing was expected in November–December 2026, subject to approvals and conditions.

• SG&A is expected to rise with IntraBio amortization and U.S. growth investment; pipeline prioritization and cost control are planned.