Takeda Pharmaceutical Co Ltd (NYSE:TAK) on Thursday reported second-quarter adjusted earnings of 48 cents per share, beating the consensus of 31 cents.
Core EPS was 308 yen, an increase of 10.5% at actual exchange rates (AER) and a decrease of 1.2% at constant exchange rates (CER).
Sales reached $7.457 billion (1.187 trillion yen), beating the Wall Street estimate of $7.19 billion.
For the first half, Takeda reported revenue of 2.407 trillion yen, an increase of 8.4% versus the prior period at AER and a 1% decline in core revenue at CER, due to challenges in its mature and off-patent portfolio.
Core operating profit increased by 0.7% at CER to 710.6 billion yen, reflecting investments in new product launches and the late-stage pipeline.
Restructuring Savings and Pipeline Development Balance Portfolio Headwinds
In an earnings conference call, CFO Milano Furuta said, “Takeda’s transformation program is progressing well, yielding savings to fund new launches and pipeline developments, with 3,000 roles impacted and 30 billion yen in annualized savings achieved.”
The program remains on track to achieve 100 billion yen of gross savings with 160 billion yen of restructuring costs in fiscal 2026, 10 billion yen less than the original forecast.
Furuta further commented, “New launches, which are products launched in the past five years, still represent only 4% of total revenue today, but are growing well at 17.3% at CER.”
The growth of new launches and core inline brands partially offset headwinds from loss-of-exclusivity products such as Vyvanse and a mature portfolio such as the hemophilia franchise, resulting in an overall revenue decline of 1% at CER.
Upward Revisions to Fiscal 2026 Outlook
Takeda Pharmaceutical raised its fiscal 2026 core earnings guidance from 472 yen to 482 yen per share. The Japanese drug maker also raised its 2026 revenue guidance from 4.64 trillion yen to 4.70 trillion yen, mainly reflecting a foreign exchange benefit.
The company expects GAAP earnings of 131 yen per share compared to the prior expectation of 104 yen.
The company maintained its core revenue guidance at CER, calling for a low-single-digit percentage decline, but adjusted product-specific forecasts, particularly lowering expectations for albumin while increasing for Vyvanse.
TAK Stock Price Activity: Takeda Pharmaceutical shares are trading lower by 1.07% at $19.93 at the time of publication on Thursday, according to Benzinga Pro data.
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