Takeda Pharmaceutical reported quarterly revenue of ¥1.22tn for the three months to June 2026, up 10.2% from a year earlier. Strip out the currency effect and the picture flips: on a constant-exchange-rate basis, revenue fell 0.5%, according to the earnings release the company filed with the Tokyo Stock Exchange on July 30. The gap between those two numbers is almost entirely the weaker yen, which inflated reported sales without adding much underlying growth.
The same split runs down the income statement. Operating profit rose 9.1% to ¥201.4bn at actual exchange rates but fell 3.1% once currency moves are stripped out. Net profit attributable to shareholders told the sharper story: it dropped 8.9% to ¥113.2bn in yen terms, and 23.5% at constant currency. Core operating profit, Takeda's preferred non-IFRS measure that excludes amortization and one-off items, climbed 11.5% to ¥358.9bn at actual rates but was down 0.5% at constant currency.
| Metric | AER change | CER change |
|---|---|---|
| Revenue | +10.2% | -0.5% |
| Operating profit | +9.1% | -3.1% |
| Net profit (parent) | -8.9% | -23.5% |
| Core operating profit | +11.5% | -0.5% |
Research and development spending rose 16.3% at actual rates (6.8% at constant currency) to ¥167.4bn, which Takeda attributed partly to currency and partly to higher spending on late-stage pipeline programs including elritercept, TAK-928 and TAK-921. Behind the profit drop sits a ¥35.8bn increase in restructuring costs tied to Takeda's transformation program, plus higher income tax expense from a review of deferred tax asset recoverability, reduced tax credits and additional US international tax charges. Operating cash flow fell to ¥127.6bn from ¥215.4bn a year earlier, mainly on a working-capital swing from higher trade receivables, partly offset by lower tax payments.
Product performance was mixed. ENTYVIO, Takeda's ulcerative colitis and Crohn's disease treatment and still its single biggest revenue driver, grew 15.4% at actual rates (3.8% at constant currency) to ¥268.3bn, helped by growing use of its subcutaneous injection format in the US and Europe. VYVANSE, the ADHD drug sold in Japan as Vyvanse, fell 6.5% at actual rates and 17.0% at constant currency to ¥54.1bn, as generic competition continued to erode its US market share.
Takeda left its full-year outlook untouched. It still expects annual revenue of ¥4.64tn, up 3.0%, and net profit attributable to shareholders of ¥166.0bn, alongside a core operating profit target of ¥1.16tn. Management's currency-neutral guidance, unchanged since it was first issued on May 13, calls for core revenue to fall by a low single-digit percentage, core operating profit to decline 5% to 8%, and core earnings per share to drop by a mid-teens percentage. The annual dividend forecast stays at ¥204.00 per share, up from ¥200.00 last year.