Takeda Pharmaceutical Company (4502) Q4 2026 earnings summary

Executive summary

• CEO transition completed, with Julie Kim assuming leadership and a new executive team established to drive the next phase of growth.

• FY2025 delivered solid results with core revenue of JPY 4,505.7B (-2.6% at CER), core operating profit of JPY 1,172.5B (-0.9% at CER), and core EPS of JPY 517 (+3.1% at CER).

• OPEX savings from an enterprise-wide efficiency program offset the profit impact from VYVANSE generic erosion.

• Three transformative medicines (oveporexton, rusfertide, zasocitinib) are poised for launch in the next 12 months, setting up a new growth trajectory.

• Robust late-stage pipeline with multiple NMEs and lifecycle management opportunities.

Financial highlights

• Core revenue: JPY 4,505.7B (-2.6% at CER); core operating profit: JPY 1,172.5B (-0.9% at CER); core EPS: JPY 517 (+3.1% at CER).

• Reported operating profit rose 19.3% to JPY 408.8B, with net profit attributable to owners up 77.7% to JPY 191.8B.

• Adjusted free cash flow was JPY 684.5B, after a $1.2B upfront payment for an oncology partnership.

• Gross margin was 65.1%, with cost of sales down 0.5% year-over-year.

• Adjusted net debt/adjusted EBITDA improved to 2.6x.

Outlook and guidance

• FY2026 revenue forecast: JPY 4,640.0B (+3.0% year-over-year); core operating profit: JPY 1,160.0B (-1.1%); core EPS: JPY 472 (-8.7%).

• Management guidance at CER: low-single digit % decline in core revenue, 5–8% decline in core operating profit, mid-teens % decline in core EPS.

• Free cash flow outlook stable at JPY 650–750B; annual dividend to increase to JPY 204 per share.

• Horizon One (2–3 years): focus on launching new products, protecting margins, and returning to revenue growth.

• Horizon Two: growth acceleration driven by scaling new launches and additional late-stage pipeline assets.