Terumo (4543) Q3 2026 earnings summary

Executive summary

• Achieved record-high revenue and profit for Q3 and Q3 year-to-date, led by strong North American sales, double-digit growth excluding FX, and robust global medical demand.

• Consolidated results now include OrganOx and Leverkusen Plant acquisitions, expanding into organ transplantation and CDMO businesses.

• Effective pricing strategies and disciplined cost control offset tariffs and FX headwinds, supporting profitability.

• Profit attributable to owners increased 11.1% year-over-year to ¥109.5 billion, with basic EPS up to ¥74.27.

• Operating profit, adjusted operating profit, and profit for the period all reached new highs, progressing ahead of guidance.

Financial highlights

• Revenue reached ¥831.6 billion for Q3 year-to-date, up 7.7% year-over-year, with 9% growth in North America (excluding FX).

• Operating profit was ¥144.9 billion, up 8.5% year-over-year; adjusted operating profit rose 8.9% to ¥173.5 billion.

• Q3 YTD profit for the year grew 11% to ¥109.5 billion; total comprehensive income surged 37.3% to ¥194.8 billion.

• Free cash flow for Q3 YTD was -¥173.8 billion, reflecting significant investments and M&A activity.

• Gross profit margin declined in Q3 due to one-time expenses and FX, but year-to-date pricing gains offset tariff effects.

Outlook and guidance

• Full-year revenue guidance is ¥1,108.0 billion (+6.9% year-over-year), with adjusted operating profit of ¥221.5 billion (+8.9%) and profit attributable to owners of ¥136.0 billion (+16.3%).

• Business is on track to achieve GS 2026 targets, including a 20% operating profit margin and 10% ROIC (excluding M&A impact).

• Dividend forecast raised to ¥30.00 per share for FY2026.

• Continued focus on pricing initiatives, structural reforms, and cost optimization to support sustainable profit growth.

• One-time expenses, mainly acquisition-related, are anticipated for the current year, with limited impact expected going forward.