Takeda Pharmaceutical Company (4502) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 revenue declined 8.4% year-over-year to JPY 1,106.7 billion, mainly due to Vyvanse's generic erosion and FX headwinds, but net profit rose 30.4% to JPY 124.2 billion on lower impairment, restructuring, and other expenses, as well as divestment gains.

• Growth and launch products, representing 50% of revenue, grew 5% at CER, showing resilience and expected to accelerate in subsequent quarters.

• No change to full-year outlook or management guidance; pipeline progress remains strong, highlighted by positive phase 3 results for Oveporexant in narcolepsy type 1 and Rusfertide in polycythemia vera.

Financial highlights

• Q1 revenue was JPY 1,106.7 billion, down 8.4% year-on-year (or -3.7% at CER); core operating profit was JPY 321.8 billion, down 15.8% (-11.9% at CER); reported operating profit increased 11% to JPY 184.6 billion.

• Net profit attributable to owners rose 30.4% to JPY 124.2 billion; core net profit was JPY 237.0 billion (-14.4%, -10.3% at CER).

• Core EPS was JPY 151; reported EPS was JPY 79.40 (+30.8%).

• Adjusted free cash flow was strong at JPY 190.1 billion, up 703.6% year-over-year.

• Operating cash flow rose to JPY 215.4 billion (+26.5% year-over-year).

Outlook and guidance

• Full-year FY2025 outlook remains unchanged; revenue forecast is JPY 4,530.0 billion (-1.1% year-over-year), with core operating profit forecast at JPY 1,140.0 billion (-1.9%).

• EPS guidance: 145 yen (reported, +111.8%); 485 yen (core, -1.2%).

• Adjusted free cash flow guidance: JPY 750.0–850.0 billion; annual dividend per share: 200 yen.

• Assumes global Vyvanse revenue of JPY 241.0 billion (-30% at CER); FX assumptions: 150 JPY/USD, 160 JPY/EUR.

• Management expects Q1 to be the most impacted by Vyvanse LOE, with growth in launch products offsetting erosion.