Takeda Pharmaceutical reported net profit of ¥305.7bn for the six months to September 2026, up 171.6% from ¥112.6bn a year earlier, and raised its forecasts for the year to March 2027. The headline growth rests on three things: a weaker yen, a sharply lower tax charge and the absence of last year's impairment. Core operating performance was close to flat once currency is stripped out.
Currency does the work on sales
Revenue rose 8.4% to ¥2.407tn at actual exchange rates but fell 1.0% at constant exchange rates, which restate current results at last year's rates. Takeda attributes the increase mainly to the weaker yen. Excluding currency, it says core revenue edged down: established flagship products were roughly flat and new products grew, but products hit by loss of exclusivity and mature products fell by more. New products grew 17.3% at constant rates and made up 4% of core revenue.
| Measure | Six months to Sept 2026 | Change at actual rates | Change at constant rates |
|---|---|---|---|
| Revenue | ¥2.407tn | +8.4% | -1.0% |
| Operating profit | ¥406.7bn | +60.4% | +45.0% |
| Net profit | ¥305.7bn | +171.6% | +148.7% |
| Core operating profit | ¥710.6bn | +11.2% | +0.7% |
| Core EPS | ¥308 | +10.5% | -1.2% |
What flatters reported profit
Operating profit rose 60.4% to ¥406.7bn (45.0% at constant rates). Amortisation and impairment of product intangibles fell to ¥218.5bn from ¥336.8bn, and the prior-year figure included a ¥58.2bn impairment on a gamma-delta T-cell platform and related oncology programmes, booked following a decision to discontinue the related research. Other operating expenses rose, with restructuring costs up ¥52.4bn under the transformation programme.
Pre-tax profit rose 78.2% to ¥318.7bn, so tax explains much of the gap to the 171.6% rise in net profit. Income tax expense fell to ¥13.0bn, an effective rate of 4.1% against 37.1%. Takeda cites a review of the recoverability of deferred tax assets and a deferred tax benefit tied to a tax loss from a subsidiary's capital restructuring.
Core measures tell a quieter story
Core operating profit, a company-defined non-IFRS measure that strips out amortisation, impairment and other operating items, rose 11.2% to ¥710.6bn at actual rates and 0.7% at constant rates. Core earnings per share were ¥308, up 10.5% at actual rates and down 1.2% at constant rates. Takeda says these core measures are tied to executive incentive pay targets.
The raised outlook
Takeda lifted its full-year forecasts from those issued on 13 May 2026. Revenue goes to ¥4.70tn from ¥4.64tn, a rise it attributes to currency. Operating profit goes to ¥453.0bn from ¥420.0bn, and profit attributable to owners to ¥209.0bn from ¥166.0bn. Core operating profit goes to ¥1.19tn from ¥1.16tn, and core EPS to ¥482 from ¥472. The new forecast assumes ¥158 to the dollar, against ¥156 before. The company expects an effective tax rate of about 23%, lower mainly because of the deferred tax asset review.
The constant-currency management guidance is narrower. Core revenue is still guided to fall by a low single-digit percentage. Core operating profit is now guided to fall by a mid-single-digit percentage, against 5% to 8% before, and core EPS to fall by a low-teens percentage, against mid-teens.
The interim dividend is ¥102 a share, payable from 1 December 2026, and the annual forecast of ¥204 is unchanged. Takeda says its forecasts are expectations, not promises, and that currency moves could change actual results.