Three-month Period Ended June 30, 2026
Filed Jul 30, 2026Revenue rose to JPY 1,219.9 billion, but CER revenue declined and net profit for the period fell as tax expense, restructuring costs and finance expenses increased.
Revenue increased 10.2% AER, but declined 0.5% CER. Operating profit increased 9.1% AER but declined 3.1% CER, while net profit for the period attributable to owners of the Company declined 8.9% AER and 23.5% CER. Takeda maintained its FY2026 forecast and CER management guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | JPY 1,219,900 million | – | 10.2 % AER; (0.5) % CER |
| Cost of salesother | JPY (406,676) million | – | 5.7 % AER; (4.5) % CER |
| Selling, general and administrative expensesother | JPY (286,513) million | – | 12.0 % AER; 1.6 % CER |
| Research and development expensesother | JPY (167,395) million | – | 16.3 % AER; 6.8 % CER |
| Amortization and impairment losses on intangible assets associated with productsother | JPY (110,928) million | – | (15.7) % AER; (23.3) % CER |
| Other operating incomeother | JPY 8,258 million | – | (62.5) % AER; (64.3) % CER |
| Other operating expensesother | JPY (55,229) million | – | 96.8 % AER; 73.4 % CER |
| Operating profitother | JPY 201,417 million | – | 9.1 % AER; (3.1) % CER |
| Finance incomeother | JPY 24,608 million | – | – |
| Finance expensesother | JPY (63,845) million | – | – |
| Finance income and (expenses), netother | JPY (39.2) billion | – | 17.5 % AER; 17.1 % CER |
| Profit before taxother | JPY 162,718 million | – | 8.0 % AER; (6.8) % CER |
| Income tax expensesother | JPY (49,462) million | – | 87.7 % AER; 71.7 % CER |
| Net profit for the periodother | JPY 113,256 million | – | (8.9) % AER; (23.5) % CER |
| Net profit for the period attributable to owners of the Companyother | JPY 113,197 million | – | (8.9) % AER; (23.5) % CER |
| Basic earnings per shareother | JPY 71.65 | – | – |
| Diluted earnings per shareother | JPY 70.54 | – | – |
| Total comprehensive income for the periodother | JPY 271,301 million | – | 127.8 % |
| Core revenuenon-GAAP | JPY 1,219.9 billion | – | 10.2 % AER; (0.5) % CER |
| Core operating profitnon-GAAP | JPY 358.9 billion | – | 11.5 % AER; (0.5) % CER |
| Core net profit for the periodnon-GAAP | JPY 242.9 billion | – | 2.5 % AER; (10.9) % CER |
| Core net profit for the period attributable to owners of the Companynon-GAAP | JPY 242.9 billion | – | 2.5 % AER; (10.9) % CER |
| Core EPSnon-GAAP | JPY 154 | – | 1.5 % AER; (11.8) % CER |
| Total assetsother | JPY 15,663,271 million | – | – |
| Total liabilitiesother | JPY 8,104,394 million | – | – |
| Total equityother | JPY 7,558,876 million | – | – |
| Equity attributable to owners of the Companyother | JPY 7,557,887 million | – | – |
| Cash and cash equivalentsother | JPY 460,982 million | – | – |
| Total bonds and loansother | JPY 4,940.0 billion | – | – |
| Net cash from operating activitiesother | JPY 127,623 million | – | – |
| Net cash used in investing activitiesother | JPY (87,703) million | – | – |
| Net cash used in financing activitiesother | JPY (180,348) million | – | – |
| Net decrease in cash and cash equivalentsother | JPY (140,427) million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| GIENTYVIO sales were JPY 268.3 billion, supported by growth of the subcutaneous formulation and favorable foreign exchange rates; GATTEX/REVESTIVE sales were JPY 41.4 billion, supported by stable U.S. demand. | JPY 386.1 billion | – | 13.8 % AER; 3.1 % CER |
| Rare DiseasesLIVTENCITY, VONVENDI and ADZYNMA grew, while TAKHZYRO U.S. sales declined due to increased competition and ADVATE faced competitive pressure in the U.S. | JPY 206.0 billion | – | 4.9 % AER; (5.8) % CER |
| PDTAggregate immunoglobulin product sales were JPY 213.9 billion; CUVITRU and HYQVIA delivered double digit percentage sales growth on continued global demand and growing supply. | JPY 283.9 billion | – | 8.8 % AER; (2.1) % CER |
| OncologyADCETRIS demand was strong mainly in Latin America, while FRUZAQLA continued to perform in Europe. | JPY 165.6 billion | – | 19.4 % AER; 8.2 % CER |
| VaccinesQDENGA sales were JPY 11.5 billion, reflecting post-launch growth in Latin America and favorable foreign exchange rates. | JPY 14.0 billion | – | 21.8 % AER; 10.1 % CER |
| NeuroscienceTRINTELLIX sales increased following lower U.S. sales in the prior-year period caused by distribution-model changes at a major customer, while VYVANSE/ELVANSE continued to face generic erosion mainly in the U.S. | JPY 113.6 billion | – | 4.6 % AER; (4.8) % CER |
| OtherRevenue outside of Takeda's key business areas declined. | JPY 50.7 billion | – | (1.1) % AER; (11.8) % CER |
| JapanGeographic revenue declined. | JPY 103.9 billion | – | (3.8) % AER; (4.2) % CER |
| United StatesGeographic revenue increased at actual exchange rates but declined at constant exchange rates. | JPY 568.9 billion | – | 4.1 % AER; (5.2) % CER |
| EuropeGeographic revenue growth reflected favorable foreign exchange rates and underlying CER growth. | JPY 282.1 billion | – | 19.1 % AER; 4.9 % CER |
| Latin AmericaGeographic revenue increased at actual and constant exchange rates. | JPY 74.2 billion | – | 28.9 % AER; 10.1 % CER |
| ChinaGeographic revenue increased at actual and constant exchange rates. | JPY 52.3 billion | – | 21.0 % AER; 4.3 % CER |
| Asia (excluding Japan & China)Geographic revenue increased at actual and constant exchange rates. | JPY 26.6 billion | – | 15.4 % AER; 7.6 % CER |
| Russia/CISGeographic revenue increased at actual and constant exchange rates. | JPY 35.4 billion | – | 22.2 % AER; 5.3 % CER |
| Other geographic regionsOther includes Canada, the Middle East, Oceania and Africa. | JPY 76.7 billion | – | 22.9 % AER; 8.5 % CER |
Fiscal Year Ending March 31, 2027 (FY2026) outlook
- RevenueJPY 4,640,000 million
- Tax rateLow 10s% cash tax rate on adjusted EBITDA (excluding divestitures)
- NoteOperating profit: JPY 420,000 million
- NoteProfit before taxes: JPY 252,000 million
- NoteNet profit attributable to owners of the Company: JPY 166,000 million
- NoteBasic earnings per share: JPY 104.26
- NoteCore Revenue: JPY 4,640,000 million
- NoteCore Operating Profit: JPY 1,160,000 million
- NoteCore EPS: JPY 472
- NoteCore Revenue Growth: Low-single digit % decline
- NoteCore Operating Profit Growth: 5% to 8% decline
- NoteCore EPS Growth: Mid-teens % decline
- NoteAdjusted free cash flow: JPY 650.0 to 750.0 billion
- NoteCapital expenditures (cash flow base): JPY (330.0) to (380.0) billion
- NoteCost of sales: JPY (1,625.0) billion
- NoteSG&A expenses: JPY (1,093.0) billion
- NoteR&D expenses: JPY (762.0) billion
- NoteAmortization of intangible assets associated with products: JPY (413.5) billion
- NoteImpairment of intangible assets associated with products: JPY (100.0) billion
- NoteOther operating income: JPY 2.5 billion
- NoteOther operating expenses: JPY (229.0) billion
- NoteFinance income and (expenses), net: JPY (170.0) billion
- NoteDepreciation and amortization (excluding intangible assets associated with products): JPY (235.0) billion
- Note1 USD = 156 JPY
- Note1 EUR = 182 JPY
- Note1 RUB = 2.0 JPY
- Note1 CNY = 22.4 JPY
- Note1 BRL = 29.5 JPY
Capital returns
- Dividends paid: JPY (150,131) million
- Acquisition of treasury shares: JPY (1,007) million
- Dividends for the Fiscal Year Ended March 31, 2026: JPY 200.00 total per share
- For the Fiscal Year Ending March 31, 2027 (Projection): JPY 102.00 at 2nd quarter end; JPY 102.00 year-end; JPY 204.00 total
- Modifications in the dividend projection from the latest announcement: None
What drove it
- The increase in revenue was primarily attributable to foreign exchange impacts from the depreciation of the Japanese yen.
- Core In-line Brands represented 58% of Core Revenue and grew by 2.3% at CER.
- New Launches represented 4% of Core Revenue and grew by 22.6% at CER.
- Cost of sales benefited from an improvement in the cost ratio due to favorable product mix.
- R&D expenses increased with late-stage pipeline programs including elritercept, TAK-928, and TAK-921.
- Lower amortization expenses mainly reflected completion of amortization of intangible assets related to VYVANSE/ELVANSE.
- Total comprehensive income increased because exchange differences on translation of foreign operations were JPY 163,296 million.
Concerns
- Revenue declined 0.5% CER, and Core Revenue was broadly flat excluding foreign exchange impacts.
- Net profit for the period declined 8.9% AER and 23.5% CER.
- Income tax expenses increased due to reassessment of deferred tax asset recoverability, lower tax credits and higher U.S. international tax provisions.
- Other operating expenses increased primarily due to a JPY 35.8 billion increase in restructuring expenses related to the transformation program.
- Net cash from operating activities decreased primarily because trade and other receivables increased.
- VYVANSE/ELVANSE sales declined due to continued generic erosion mainly in the U.S.
- TAKHZYRO and ADVATE faced U.S. competitive pressure.
What to watch
- CER performance in GI, Rare Diseases, PDT and Neuroscience following the reported divergence between AER and CER growth.
- Performance of ENTYVIO subcutaneous formulation, CUVITRU and HYQVIA, ADCETRIS, FRUZAQLA, QDENGA, LIVTENCITY, VONVENDI and ADZYNMA.
- The impact of generic erosion on VYVANSE/ELVANSE and increased competition affecting TAKHZYRO and ADVATE.
- R&D spending on elritercept, TAK-928 and TAK-921.
- Execution of the transformation program and the FY2026 forecast of JPY 170.0 billion in related restructuring expense.
- Working-capital movements, particularly trade and other receivables, and delivery against adjusted free cash flow guidance.
Balance sheet and cash flow
- Cash and cash equivalents were JPY 460,982 million as of June 30, 2026, compared with JPY 595,054 million as of March 31, 2026.
- Total assets were JPY 15,663,271 million as of June 30, 2026, compared with JPY 15,511,506 million as of March 31, 2026.
- Total liabilities were JPY 8,104,394 million as of June 30, 2026, compared with JPY 8,080,858 million as of March 31, 2026.
- Total equity was JPY 7,558,876 million as of June 30, 2026, compared with JPY 7,430,649 million as of March 31, 2026.
- Total Bonds and Loans were JPY 4,940.0 billion, including Bonds of JPY 4,715.0 billion and Loans of JPY 225.0 billion, as of June 30, 2026.
- Net cash from operating activities was JPY 127.6 billion, a JPY (87.8) billion change from FY2025 Q1.
- Net cash used in investing activities was JPY 87.7 billion, a JPY +54.5 billion change from FY2025 Q1.
- Net cash used in financing activities was JPY 180.3 billion, a JPY -34.6 billion change from FY2025 Q1.
Analysis
Takeda reported revenue of JPY 1,219.9 billion for the three-month period ended June 30, 2026, up 10.2% at actual exchange rates but down 0.5% at constant exchange rates. The company stated that the AER increase was primarily attributable to depreciation of the Japanese yen. Key business area revenue was JPY 1,169.2 billion, up 10.8% AER and 0.1% CER, while revenue outside key business areas declined 1.1% AER and 11.8% CER. Core In-line Brands grew 2.3% CER and New Launches grew 22.6% CER, but their growth was offset by loss of exclusivity-impacted and mature products.
GI and Oncology were the principal business-area contributors on a CER basis. GI increased 3.1% CER, supported by ENTYVIO subcutaneous-formulation growth and stable U.S. GATTEX/REVESTIVE demand. Oncology increased 8.2% CER, with demand for ADCETRIS and continued European performance from FRUZAQLA. Vaccines increased 10.1% CER due to QDENGA post-launch growth in Latin America. In contrast, Rare Diseases, PDT and Neuroscience each declined on a CER basis. Competition affected TAKHZYRO and ADVATE, while VYVANSE/ELVANSE continued to experience generic erosion mainly in the U.S.
Operating profit was JPY 201.4 billion, up 9.1% AER but down 3.1% CER. Favorable product mix improved the cost ratio, and lower amortization related primarily to completed VYVANSE/ELVANSE intangible-asset amortization reduced amortization and impairment losses. Those factors were offset by higher SG&A and R&D expenses, lower divestiture gains, and higher other operating expenses. The latter included a JPY 35.8 billion increase in restructuring expenses from implementation of the transformation program. Core operating profit was JPY 358.9 billion, up 11.5% AER and down 0.5% CER.
Profit conversion was pressured below operating profit. Net finance expenses increased due mainly to interest expense on unsecured U.S. dollar-denominated senior guaranteed notes issued on July 2, 2025. Income tax expense increased because of the reassessment of deferred tax asset recoverability, lower tax credits and higher U.S. international tax provisions. Net profit attributable to owners of the Company was JPY 113.2 billion, down 8.9% AER and 23.5% CER, and Core EPS declined 11.8% CER.
Cash generation declined during the period. Net cash from operating activities was JPY 127.6 billion, down JPY 87.8 billion, mainly due to working-capital changes arising from higher trade and other receivables. Cash and cash equivalents fell to JPY 460,982 million, while total bonds and loans increased to JPY 4,940.0 billion. Takeda paid JPY 150,131 million in dividends and spent JPY 1,007 million to acquire treasury shares. The company left both its FY2026 consolidated forecast and CER management guidance unchanged, including revenue of JPY 4,640,000 million, Core Operating Profit of JPY 1,160,000 million, and adjusted free cash flow of JPY 650.0 to 750.0 billion.
Not in the filing
stated, not guessed- Gross margin was not reported.
- GAAP and non-GAAP gross-margin figures were not reported.
- Quarter-over-quarter comparisons were not reported for the operating metrics.
- A reported effective tax rate was not provided.
- A previous earnings release outlook section was not provided, so no reported-results comparison against prior guidance is included.
- The filing states that Takeda comprises a single operating segment; it does not provide financial results for separate reportable operating segments.
- No named executive earnings commentary or executive quotes were provided. The representative is identified as Julie Kim, President & CEO, but no quote is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.