Daiichi Sankyo Company, Limited (TSE: 4568) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under IFRS. Revenue rose 12.6% year-on-year to ¥2,123,045 million, driven by continued global expansion of its antibody-drug-conjugate (ADC) oncology portfolio. Core operating profit — which strips out one-off gains and losses to show recurring profitability — advanced 15.1% to ¥359,962 million. Reported operating profit, by contrast, declined 31.0% to ¥229,089 million from ¥331,925 million, pre-tax profit fell 25.9% to ¥263,432 million, and net profit attributable to owners of the parent eased 12.1% to ¥259,874 million from ¥295,756 million. Basic EPS came in at ¥140.44 versus ¥155.96, with diluted EPS of ¥140.37.
Core operating profit rises, reported operating profit falls
The headline divergence this year is the gap between core and reported operating profit. Daiichi Sankyo discloses core operating profit — operating profit excluding non-recurring items — as the indicator that best reflects the underlying earnings power of the business, and on that basis the group grew 15.1%, broadly in step with the top line. Reported operating profit fell 31.0% because the prior year benefited from sizable one-off gains and because the current year carried elevated upfront and milestone-related costs alongside the group's stepped-up research investment. Total comprehensive income attributable to owners eased 6.9% to ¥289,808 million, partly reflecting currency and remeasurement swings.
Enhertu and the ADC oncology franchise drive the top line
Revenue growth continued to be led by the company's oncology business, anchored by Enhertu (trastuzumab deruxtecan) and the broader pipeline of DXd antibody-drug conjugates that Daiichi Sankyo is developing and commercializing globally, in significant part through its strategic alliance with AstraZeneca. The ADC franchise has become the group's principal growth engine, expanding across new tumor types and geographies and lifting the overall sales mix toward higher-value specialty oncology. Sustained investment behind these programs — clinical development, manufacturing scale-up and global launch costs — is the main reason R&D-related spending pressured the reported operating line even as revenue accelerated.
Balance sheet and cash flow
Total assets rose to ¥4,005,390 million from ¥3,456,119 million, while total equity increased to ¥1,664,179 million from ¥1,623,416 million. Equity attributable to owners of the parent was ¥1,664,179 million, leaving the parent equity ratio at 41.5% (from 47.0%) as total assets grew faster than equity, and book value per share rose to ¥914.56 from ¥869.69. Operating cash flow was ¥77,655 million (versus ¥53,842 million a year earlier); investing activities used ¥148,241 million and financing activities used ¥97,875 million. Period-end cash and equivalents stood at ¥488,983 million, down from ¥639,838 million. ROE attributable to owners eased to 15.8% from 17.9%.
Dividend raised; group reorganization
Daiichi Sankyo lifted its annual dividend to ¥78.00 per share (¥39.00 interim + ¥39.00 year-end), up from ¥60.00 the prior year, with a consolidated payout ratio of 55.5% and total dividends of ¥144,262 million. During the year the group also reshaped its consolidation scope, deconsolidating two subsidiaries — Daiichi Sankyo Propharma Co., Ltd. and Daiichi Sankyo Chemical Pharma Co., Ltd. — as part of an ongoing portfolio realignment toward its core innovative-pharmaceuticals business.
FY27 guidance: operating profit set to rebound 38%
For FY3/2027, management guides to revenue of ¥2,280,000 million (+7.4%) and core operating profit of ¥360,000 million (+27.5%). Reported operating profit is guided to recover sharply to ¥315,000 million (+37.5%) as the prior year's one-off cost burden normalizes, with pre-tax profit of ¥329,000 million (+24.9%) and net profit attributable to owners of ¥260,000 million (essentially flat, +0.0%), implying basic EPS of ¥142.88. The group raised its FY3/2027 dividend forecast to ¥100.00 per share (¥50.00 interim + ¥50.00 year-end), signaling continued confidence in cash generation as the oncology franchise matures.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 2,123,045 | 1,886,256 | +12.6% |
| Core operating profit (¥ million) | 359,962 | 312,835 | +15.1% |
| Operating profit (¥ million) | 229,089 | 331,925 | −31.0% |
| Pre-tax profit (¥ million) | 263,432 | 355,631 | −25.9% |
| Net profit attrib. to owners (¥ million) | 259,874 | 295,756 | −12.1% |
| Basic EPS (¥) | 140.44 | 155.96 | −10.0% |
| ROE (attrib. to owners) | 15.8% | 17.9% | −2.1pp |
| Parent equity ratio | 41.5% | 47.0% | −5.5pp |
| Annual dividend (¥) | 78.00 | 60.00 | +30.0% |
| FY27 revenue guidance (¥ million) | 2,280,000 | — | +7.4% |
| FY27 operating profit guidance (¥ million) | 315,000 | — | +37.5% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.