Astellas Pharma Inc. (TSE: 4503), one of Japan's largest pharmaceutical groups, reported consolidated results for the first quarter of the fiscal year ending March 31, 2027 — the three months from April 1 to June 30, 2026 — under IFRS. Revenue rose 26.7% to ¥640,914 million, operating profit jumped 94.9% to ¥184,506 million, profit before tax climbed 106.3% to ¥186,514 million, and profit attributable to owners of the parent more than doubled, up 107.3% to ¥141,828 million. Basic earnings per share were ¥79.15, against ¥38.22 a year earlier; diluted EPS was ¥78.96. Total comprehensive income surged 426.2% to ¥183,619 million.
Five focus products plus XTANDI drive the top line
Sales grew across all five of the company's designated focus products: PADCEV in urothelial cancer, IZERVAY in geographic atrophy secondary to age-related macular degeneration, VYLOY in gastric and gastro-oesophageal junction adenocarcinoma, VEOZAH for vasomotor symptoms associated with menopause, and XOSPATA in acute myeloid leukaemia. XTANDI, the prostate-cancer treatment that has long anchored group revenue, also expanded in the quarter — a combination that lifted the top line by ¥135.1 billion year on year.
Core operating profit up 55.6%
Astellas reports a "core" measure alongside the full basis, stripping out intangible-asset amortisation, gains on intangible transfers, equity-method results, impairment losses, gains and losses on property disposals, restructuring costs, disaster losses and large litigation or settlement costs. On that basis, core operating profit rose 55.6% to ¥221,417 million, core profit for the quarter rose 62.8% to ¥170,472 million, and core profit attributable to owners was ¥170,548 million, up 62.9%. Core basic EPS was ¥95.18, up 62.7% from ¥58.49. Core gross profit reached ¥518,200 million, up 26.1%.
Cost lines grew more slowly than revenue. Selling, general and administrative expenses rose 9.2% to ¥215,067 million: the company's Sustainable Margin Transformation (SMT) cost-optimisation programme trimmed roughly ¥3.0 billion, while currency movements added about ¥19.6 billion. Excluding U.S. XTANDI co-promotion expenses, SG&A was ¥147,600 million, up 10.1%. Research and development spending rose 14.0% to ¥81,729 million, with about ¥3.0 billion of SMT savings offset by roughly ¥5.8 billion of currency effects, about ¥2.0 billion of additional clinical-development spend on the focus products and about ¥4.0 billion more on advancing the wider pipeline.
A ¥60 billion currency tailwind
The quarter's average exchange rates were ¥159 to the U.S. dollar, against ¥145 a year earlier — a ¥15 move — and ¥185 to the euro, against ¥164, a ¥21 move. Applying prior-year rates, the company calculates that foreign exchange added about ¥60.0 billion to revenue and roughly ¥25.5 billion to core operating profit. That accounts for close to half of the ¥135.1 billion revenue increase, and points to a materially smaller underlying advance than the headline 26.7% suggests.
Balance sheet and dividend
Total assets stood at ¥3,692,526 million at the end of June, up from ¥3,567,042 million at the fiscal year-end. Total equity rose to ¥1,944,449 million from ¥1,830,884 million, with equity attributable to owners of the parent at ¥1,942,686 million against ¥1,829,044 million. The ratio of equity attributable to owners improved to 52.6% from 51.3%. The dividend forecast for FY3/27 is unchanged at ¥80.00 per share — ¥40.00 interim plus ¥40.00 year-end — up from the ¥78.00 paid for FY3/26.
Guidance left untouched
Despite the size of the beat, Astellas reiterated its full-year forecast in full: revenue of ¥2,220,000 million (+3.8%), operating profit of ¥395,000 million (+3.2%), profit before tax of ¥385,000 million (+2.2%), profit for the year of ¥300,000 million (+2.9%) and profit attributable to owners of ¥300,000 million (+2.9%), with basic EPS of ¥167.46.
The shape of that guidance is worth noting. The first quarter alone delivered ¥184.5 billion of the ¥395.0 billion full-year operating-profit target and ¥141.8 billion of the ¥300.0 billion attributable-profit target — 47% of each in one quarter. Holding the annual numbers therefore implies a materially softer remaining nine months, whether from currency normalisation, the phasing of R&D and co-promotion costs, or simple conservatism this early in the year. The company did not revise the forecast, so the arithmetic stands as an observation about how the year is framed rather than a signal about how it will end.
| Metric | Q1 FY3/27 | Q1 FY3/26 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 640.91 | 505.79 | +26.7% |
| Operating profit (¥ billion) | 184.51 | 94.65 | +94.9% |
| Profit before tax (¥ billion) | 186.51 | 90.42 | +106.3% |
| Profit attrib. to owners (¥ billion) | 141.83 | 68.42 | +107.3% |
| Basic EPS (¥) | 79.15 | 38.22 | +107.1% |
| Core operating profit (¥ billion) | 221.42 | — | +55.6% |
| Core profit attrib. to owners (¥ billion) | 170.55 | — | +62.9% |
| Core basic EPS (¥) | 95.18 | 58.49 | +62.7% |
| FY3/27 revenue guidance (¥ billion) | 2,220.00 | — | +3.8% |
| FY3/27 operating profit guidance (¥ billion) | 395.00 | — | +3.2% |
| FY3/27 profit attrib. to owners guidance (¥ billion) | 300.00 | — | +2.9% |
| FY3/27 basic EPS guidance (¥) | 167.46 | — | — |
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.