Takeda Pharmaceutical (NYSE:TAK) Announces Earnings Results, Misses Estimates By $0.07 EPS

Takeda Pharmaceutical (NYSE:TAK) issued its quarterly earnings data on Thursday. The company reported $0.48 EPS for the quarter, missing the consensus estimate of $0.55 by ($0.07), Zacks reports. The business had revenue of $7.76 billion during the quarter, compared to analyst estimates of $7.81 billion. Takeda Pharmaceutical had a net margin of 2.58% and a return on equity of 10.73%.

Here are the key takeaways from Takeda Pharmaceutical’s conference call:

• Takeda delivered three Phase‑3 wins—oveporexin, rusfertide and zasocitinib—has filed NDAs for the first two, is preparing the zasocitinib filing for 2027, and expects these launches over the next 18 months to be major growth drivers.
• Management cut revenue guidance to a low single‑digit decline at CER due mainly to stronger‑than‑expected generic erosion of Vyvanse, which was the primary headwind to year‑to‑date revenue performance.
• Operational cost discipline and lower R&D/SG&A allowed Takeda to maintain full‑year guidance for core operating profit and core EPS, and to upgrade adjusted free cash flow despite the Vyvanse headwind.
• Entyvio showed strong Q3 growth and broader U.S. pen coverage (~80%), but its selection for IRA price negotiation introduces uncertainty around 2028 Medicare pricing and potential impact on long‑term peak sales.

Takeda Pharmaceutical Trading Up 0.2%

TAK stock traded up $0.04 during trading on Friday, reaching $17.21. 5,626,273 shares of the stock were exchanged, compared to its average volume of 3,160,032. The business has a 50 day moving average price of $15.41 and a 200-day moving average price of $14.81. The firm has a market capitalization of $54.76 billion, a price-to-earnings ratio of 71.71 and a beta of 0.03. The company has a current ratio of 1.37, a quick ratio of 0.76 and a debt-to-equity ratio of 0.61. Takeda Pharmaceutical has a 1 year low of $12.99 and a 1 year high of $17.25.

Analyst Upgrades and Downgrades

TAK has been the topic of several recent analyst reports. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Takeda Pharmaceutical in a report on Monday, December 29th. Morgan Stanley assumed coverage on Takeda Pharmaceutical in a report on Tuesday, January 13th. They issued an “overweight” rating on the stock. Finally, Wall Street Zen raised Takeda Pharmaceutical from a “hold” rating to a “strong-buy” rating in a report on Saturday. One analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold”.

Institutional Investors Weigh In On Takeda Pharmaceutical

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Franklin Resources Inc. grew its holdings in Takeda Pharmaceutical by 3.8% in the third quarter. Franklin Resources Inc. now owns 19,458 shares of the company’s stock valued at $285,000 after purchasing an additional 713 shares during the last quarter. Lido Advisors LLC increased its holdings in Takeda Pharmaceutical by 4.4% during the 3rd quarter. Lido Advisors LLC now owns 27,714 shares of the company’s stock valued at $406,000 after acquiring an additional 1,166 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Takeda Pharmaceutical by 56.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,586 shares of the company’s stock worth $55,000 after acquiring an additional 1,292 shares during the last quarter. Captrust Financial Advisors lifted its holdings in shares of Takeda Pharmaceutical by 6.0% in the second quarter. Captrust Financial Advisors now owns 38,440 shares of the company’s stock valued at $594,000 after purchasing an additional 2,189 shares in the last quarter. Finally, Larson Financial Group LLC grew its position in shares of Takeda Pharmaceutical by 43.7% in the third quarter. Larson Financial Group LLC now owns 7,823 shares of the company’s stock valued at $115,000 after purchasing an additional 2,379 shares during the last quarter. Institutional investors and hedge funds own 9.17% of the company’s stock.

Key Takeda Pharmaceutical News

Here are the key news stories impacting Takeda Pharmaceutical this week:

• Positive Sentiment: Takeda raised FY‑2025 revenue guidance to $29.4 billion and issued EPS guidance of 3.160, above consensus revenue expectations — a clear near‑term positive for top‑line visibility and investor sentiment.
• Positive Sentiment: Q3 results beat expectations: EPS $0.95 vs. $0.55 consensus; management cited cost discipline, FX tailwinds and narrowing gap between Growth & Launch products and VYVANSE generic erosion—management is tightening OPEX and raising confidence in the full‑year outlook. Takeda Reports Third-Quarter FY2025 Results
• Neutral Sentiment: CEO Christophe Weber discussed succession planning and avoiding a ‘lame duck’ exit — governance and leadership continuity themes that reduce execution risk but are longer‑term in impact. Takeda’s Christophe Weber on avoiding a ‘lame duck’ succession
• Neutral Sentiment: Earnings‑call and transcript detail product performance, launch timing and cost actions — useful for modeling but not an immediate catalyst. Takeda Q3 FY2025 Earnings Call Transcript
• Negative Sentiment: Analyst downgrade from Buy to Hold after TAK hit 52‑week highs — valuation noted as less compelling and the lack of a clear Entyvio successor reduces near‑term upside; this can pressure sentiment and limit multiple expansion. Takeda Tests New Highs, But Struggles To Find Entyvio Successor
• Negative Sentiment: Legal exposure: an adverse jury outcome in an Actos-related case and active litigation motions (including efforts to move a Louisiana suit) represent potential liabilities and headline risk that can weigh on the stock. Takeda and Eli Lilly fall foul of jury in Actos Pharma company wants La. suit over stomach acid meds moved

About Takeda Pharmaceutical

Takeda Pharmaceutical Company Limited (NYSE: TAK) is a Tokyo-based, multinational biopharmaceutical company with roots dating back to 1781. The company researches, develops, manufactures and commercializes pharmaceutical and biopharmaceutical products for patients worldwide. Takeda is publicly listed and operates as a fully integrated R&D-driven healthcare company focused on delivering specialty medicines and therapies across a range of therapeutic areas.

Takeda’s main business activities encompass discovery and development of prescription medicines, clinical development and regulatory affairs, manufacturing of small molecules and biologics, and global commercial operations.