Takeda Pharmaceutical Company Limited American Depositary Shares (each representing 1/2 of a share of (TAK) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 28, 2027 — estimated from last year’s reporting date.

Consensus is $0.45 EPS for Dec 2026 across 1 estimates, ranging $0.45 to $0.45.

TAK Sep 2026

Reported Oct 29, 2026 · before the open

: 64.52%

: $0.31
: $0.51
: —
: —

Highlights

EPS surprise: Reported EPS was $0.51 versus consensus of $0.31, a 64.5% beat, according to the supplied expectations data.
Underlying operating profit: Q2 core operating profit was ¥351.7 billion, up 1.9% year over year at constant exchange rates (CER); reported operating profit rose 173.6% CER to ¥205.3 billion.
Revenue and mix: Q2 revenue was ¥1,187.1 billion, up 6.7% at actual exchange rates but down 1.6% CER. Takeda cited weaker-than-expected Albumin and QDENGA in its full-year outlook.
Reported earnings: Q2 net profit attributable to owners was ¥192.4 billion, versus a ¥11.8 billion loss a year earlier; the prior-year quarter included much higher product-asset impairment.
Raised outlook: FY2026 revenue guidance increased to ¥4,700 billion from ¥4,640 billion, core operating profit to ¥1,190 billion from ¥1,160 billion, and core EPS to ¥482 from ¥472.
Cash generation: H1 operating cash flow fell 27.2% to ¥431.9 billion and adjusted free cash flow fell 38.0% to ¥325.7 billion.
Leverage: Adjusted net debt to adjusted EBITDA was 2.5x at H1, compared with 2.6x at FY2025 year-end.

Analysis

Takeda’s FY2026 Q2 (July–September) delivered an EPS beat against the supplied consensus—$0.51 versus $0.31—but the operating picture was more measured. Revenue of ¥1,187.1 billion increased 6.7% in reported yen, while falling 1.6% CER. Core operating profit rose 1.9% CER to ¥351.7 billion, a more representative signal of underlying performance than reported operating profit, which jumped 173.6% CER to ¥205.3 billion. The reported increase benefited from a much smaller impairment charge than in the year-ago quarter. The company’s appendix lists Q2 reported basic EPS as ¥120.79, or $0.77 on its convenience-translation basis, and core EPS as ¥155, or $0.99 on that basis.

Sequentially, revenue eased from an implied ¥1,219.9 billion in Q1 to ¥1,187.1 billion in Q2, while core operating profit declined from an implied ¥358.9 billion to ¥351.7 billion. The quarter’s other defining development was a higher FY2026 outlook: Takeda raised revenue, core operating profit and core EPS targets, while noting Albumin and QDENGA underperformance. Cash conversion was weaker, with H1 adjusted free cash flow down 38.0% year over year. The H1 leverage measure improved to 2.5x from 2.6x at FY2025 year-end.

Underlying operating performance

Core results: Q2 core operating profit was ¥351.7 billion, up 10.8% at actual exchange rates and 1.9% CER. The core margin rose 1.1 percentage points year over year to 29.6%.
Reported results: Operating profit was ¥205.3 billion, versus ¥69.0 billion a year earlier. The reported margin increased to 17.3% from 6.2%, but the comparison reflects prior-year product-asset impairment of ¥73.7 billion versus ¥0.8 billion this quarter.
Sequential trend: Q1 core operating profit was approximately ¥358.9 billion, calculated as H1 core operating profit of ¥710.6 billion less Q2’s ¥351.7 billion. Q2 was therefore about 2.0% lower sequentially.

Revenue and portfolio

Q2 sales: Revenue was ¥1,187.1 billion, up 6.7% at actual exchange rates but down 1.6% CER. Gross profit increased 8.5% at actual rates to ¥795.0 billion, while the gross margin rose 1.1 percentage points to 67.0%.
H1 picture: Revenue reached ¥2,407.0 billion, up 8.4% at actual exchange rates but down 1.0% CER. H1 core operating profit increased 0.7% CER to ¥710.6 billion.
Portfolio factors: In raising its full-year forecast, Takeda cited foreign-exchange benefits and stronger-than-expected revenue from loss-of-exclusivity products and the Mature Portfolio, partly offset by underperformance in Albumin and QDENGA.

FY2026 outlook

Raised targets: Full-year revenue guidance increased ¥60 billion to ¥4,700 billion, core operating profit rose ¥30 billion to ¥1,190 billion, and core EPS increased ¥10 to ¥482.
Reported earnings forecast: Takeda raised its net profit attributable to owners forecast to ¥209 billion from ¥166 billion and reported basic EPS guidance to ¥131 from ¥104. It attributed the net-profit increase mainly to a lower expected tax rate, driven primarily by deferred tax asset recognition.
Cash and investment: Adjusted free cash flow guidance increased to ¥700–800 billion from ¥650–750 billion. Full-year capital expenditure guidance remained ¥330–380 billion; the company also cited additional R&D savings from pipeline prioritization.

Cash flow and leverage

H1 operating cash: Net cash from operating activities was ¥431.9 billion, down 27.2% from ¥593.7 billion. Trade working capital used ¥119.6 billion of cash, compared with a ¥15.0 billion use in the prior-year half.
H1 free cash flow: Free cash flow was ¥333.4 billion versus ¥505.6 billion; adjusted free cash flow was ¥325.7 billion versus ¥525.4 billion. Lower operating cash flow and higher intangible-asset purchases contributed to the decline.
Debt ratio: Adjusted net debt was ¥3,917.9 billion and LTM adjusted EBITDA was ¥1,540.3 billion, producing an adjusted net debt/adjusted EBITDA ratio of 2.5x, versus 2.6x at FY2025 year-end.

Takeda Pharmaceutical Company Limited American Depositary Shares (each representing 1/2 of a share of

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