Takeda Pharmaceutical Company (4502) Q3 2026 earnings summary

Executive summary

• Revenue for the nine-month period ended December 31, 2025, was JPY 3,411.2 billion, down 3.3% year-over-year, mainly due to Vyvanse generic erosion and Neuroscience headwinds, partially offset by growth in launch products.

• Core operating profit declined 3.4% year-over-year to JPY 971.6 billion, but reported operating profit rose 1.2% to JPY 422.4 billion due to lower restructuring costs offsetting impairment charges.

• Net profit attributable to owners was JPY 216.1 billion, up 2.4% year-over-year, with EPS at 137 yen (+2.7%).

• Adjusted free cash flow increased 10.1% year-over-year to JPY 625.9 billion, reflecting improved working capital and higher operating cash flow.

• Leadership transition to Julie Kim as CEO is underway to ensure continuity and momentum for upcoming launches.

Financial highlights

• Revenue: JPY 3,411.2 billion (−3.3% year-over-year, −2.8% at CER); core operating profit: JPY 971.6 billion (−3.4% year-over-year); reported operating profit: JPY 422.4 billion (+1.2% year-over-year).

• Net profit: JPY 216.1 billion (+2.4% year-over-year); EPS: 137 yen (+2.7% year-over-year); core EPS: JPY 428.

• Adjusted free cash flow: JPY 625.9 billion (+10.1% year-over-year), even after $1.2 billion upfront payment to Innovent Biologics.

• Operating cash flow: JPY 966.9 billion (+15.8% year-over-year); cash and cash equivalents at period end: JPY 654.9 billion.

• Gross margin stable at 65.8% for the period.

Outlook and guidance

• FY2025 revenue forecast revised up to JPY 4,530.0 billion, with core operating profit forecast at JPY 1,150.0 billion and core EPS at JPY 486.

• Adjusted free cash flow guidance increased to JPY 650.0–750.0 billion.

• Annual dividend per share maintained at JPY 200.

• Continued OpEx discipline expected to offset gross profit impact from Vyvanse and FX volatility.

• Management guidance at CER projects low-single-digit declines in core revenue, core operating profit, and core EPS.