Gross margins have experienced significant compression, falling from a peak of 68.0% in 2024Q1 to 48.8% by 2025Q4, suggesting rising production costs or an unfavorable product mix.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 |
|---|
| Sales/Revenue | 4.78T | 4.58T | 4.26T | 4.03T | 3.57T | 3.2T | 3.29T | 2.1T | 1.77T | 1.73T | 1.81T | 1.78T | 1.69T | 1.56T | 1.51T | 1.42T | 1.47T | 1.54T | 1.37T | 1.31T | 1.21T | 1.12T | 1.09T | 1.05T | 1.01T | 963.48B |
| Revenue Growth % | 4.28% | 7.45% | 5.87% | 12.85% | 11.61% | -2.84% | 56.93% | 18.45% | 2.22% | -4.17% | 1.66% | 5.09% | 8.63% | 3.2% | 6.31% | -3.18% | -4.7% | 11.9% | 5.34% | 7.67% | 7.95% | 3.36% | 3.86% | 4.08% | 4.32% | - |
| Cost of Goods Sold | 2.34T | 1.58T | 1.43T | 1.24T | 1.11T | 994.31B | 1.09T | 659.69B | 495.92B | 558.75B | 535.4B | 520.99B | 490.26B | 447.63B | 433.19B | 317.58B | 285.06B | 289.54B | 278.63B | 279.66B | 282.1B | 279.18B | 269.39B | 300.34B | 337.85B | 384.01B |
| COGS % of Revenue | 48.94% | 34.49% | 33.57% | 30.89% | 31.01% | 31.09% | 33.11% | 31.46% | 28.01% | 32.26% | 29.62% | 29.3% | 28.98% | 28.74% | 28.71% | 22.37% | 19.45% | 18.82% | 20.27% | 21.43% | 23.27% | 24.86% | 24.8% | 28.71% | 33.62% | 39.86% |
| Gross Profit | 2.44T | 3T | 2.83T | 2.78T | 2.46T | 2.2T | 2.2T | 1.44T | 1.27T | 1.17T | 1.27T | 1.26T | 1.2T | 1.11T | 1.08T | 1.1T | 1.18T | 1.25T | 1.1T | 1.03T | 930.11B | 843.78B | 817.04B | 745.74B | 667.21B | 579.47B |
| Gross Margin % | 51.06% | 65.51% | 66.43% | 69.11% | 68.99% | 68.91% | 66.89% | 68.54% | 71.99% | 67.74% | 70.38% | 70.7% | 71.02% | 71.26% | 71.29% | 77.63% | 80.55% | 81.18% | 79.73% | 78.57% | 76.73% | 75.14% | 75.2% | 71.29% | 66.38% | 60.14% |
| Gross Profit Growth % | -18.73% | 5.97% | 1.76% | 13.05% | 11.74% | 0.09% | 53.14% | 12.78% | 8.63% | -7.76% | 1.2% | 4.61% | 8.27% | 3.15% | -2.37% | -6.7% | -5.44% | 13.92% | 6.89% | 10.26% | 10.23% | 3.27% | 9.56% | 11.77% | 15.14% | - |
| Operating Expenses | 1.87T | 2.66T | 2.62T | 2.29T | 2T | 1.69T | 2.1T | 1.28T | 1.03T | 1.02T | 1.14T | 1.39T | 1.06T | 987.13B | 810.71B | 734.72B | 760.69B | 942.33B | 673.05B | 567B | 527.3B | 458.5B | 445.4B | 435.05B | 385.96B | 353.37B |
| OpEx % of Revenue | 39.06% | 58.03% | 61.41% | 56.93% | 56.07% | 52.98% | 63.84% | 60.9% | 58.33% | 58.74% | 63.14% | 77.97% | 62.79% | 63.39% | 53.73% | 51.76% | 51.89% | 61.26% | 48.96% | 43.44% | 43.5% | 40.83% | 41% | 41.59% | 38.4% | 36.68% |
| Selling, General & Admin | 1.15T | 1.1T | 1.05T | 997.31B | 886.36B | 875.66B | 964.74B | 717.6B | 628.11B | 619.06B | 650.77B | 612.61B | 556.21B | 987.13B | 810.71B | 734.72B | 760.69B | 942.33B | 0 | 0 | 0 | 0 | 0 | 0 | 385.96B | 0 |
| SG&A % of Revenue | 24.06% | 24.11% | 24.72% | 24.76% | 24.83% | 27.38% | 29.31% | 34.22% | 35.48% | 35.74% | 36.01% | 34.46% | 32.88% | 63.39% | 53.73% | 51.76% | 51.89% | 61.26% | - | - | - | - | - | - | 38.4% | - |
| Research & Development | 716.69B | 730.23B | 729.92B | 633.33B | 526.09B | 455.83B | 492.38B | 368.3B | 325.44B | 312.3B | 345.93B | 382.1B | 341.56B | 324.29B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | 15% | 15.94% | 17.12% | 15.73% | 14.74% | 14.25% | 14.96% | 17.56% | 18.38% | 18.03% | 19.14% | 21.49% | 20.19% | 20.82% | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 823.75B | 834.44B | 662.27B | 588.87B | 362.74B | 643.9B | 908.87B | 707.38B | 705.13B | 795.22B | 1T | 720.59B | 5.81B | 0 | 3.78B | 735M | 0 | 673.05B | 567B | 527.3B | 458.5B | 445.4B | 435.05B | 0 | 353.37B |
| Operating Income | 573.04B | 342.59B | 214.07B | 490.5B | 460.84B | 509.27B | 100.41B | 204.97B | 241.79B | 155.87B | 130.83B | -129.25B | 139.27B | 122.5B | 265.03B | 367.08B | 420.21B | 306.47B | 423.12B | 458.5B | 402.81B | 385.28B | 371.63B | 310.69B | 281.24B | 226.1B |
| Operating Margin % | 11.99% | 7.48% | 5.02% | 12.18% | 12.91% | 15.93% | 3.05% | 9.77% | 13.66% | 9% | 7.24% | -7.27% | 8.23% | 7.87% | 17.56% | 25.86% | 28.66% | 19.92% | 30.78% | 35.13% | 33.23% | 34.31% | 34.21% | 29.7% | 27.98% | 23.47% |
| Operating Income Growth % | 67.27% | 60.03% | -56.36% | 6.44% | -9.51% | 407.2% | -51.01% | -15.23% | 55.13% | 19.14% | 201.22% | -192.81% | 13.69% | -53.78% | -27.8% | -12.64% | 37.11% | -27.57% | -7.72% | 13.83% | 4.55% | 3.67% | 19.62% | 10.47% | 24.39% | - |
| EBITDA | 1.34T | 1.1T | 858.54B | 1.15T | 1.04T | 1.07T | 684.06B | 452.66B | 423.92B | 327.29B | 328.21B | 131.7B | 355.02B | 323.61B | 415.22B | 473.81B | 535.04B | 424.55B | 454.81B | 487.32B | 431.54B | 416.5B | 399.72B | 340.65B | 309.67B | 259.71B |
| EBITDA Margin % | 28% | 24.1% | 20.14% | 28.68% | 29.25% | 33.43% | 20.78% | 21.58% | 23.94% | 18.9% | 18.16% | 7.41% | 20.99% | 20.78% | 27.52% | 33.38% | 36.5% | 27.6% | 33.08% | 37.34% | 35.6% | 37.09% | 36.79% | 32.56% | 30.81% | 26.96% |
| EBITDA Growth % | 21.17% | 28.59% | -25.66% | 10.62% | -2.33% | 56.26% | 51.12% | 6.78% | 29.52% | -0.28% | 149.22% | -62.9% | 9.7% | -22.06% | -12.36% | -11.44% | 26.02% | -6.65% | -6.67% | 12.93% | 3.61% | 4.2% | 17.34% | 10% | 19.24% | - |
| D&A (Non-Cash Add-back) | 764.62B | 761.4B | 644.46B | 664.4B | 583.15B | 559.67B | 583.65B | 247.69B | 182.13B | 171.43B | 197.38B | 260.95B | 215.74B | 201.11B | 150.19B | 106.72B | 114.83B | 118.08B | 31.69B | 28.82B | 28.73B | 31.23B | 28.08B | 29.96B | 28.43B | 33.6B |
| EBIT | 573.04B | 449.12B | 499.48B | 619.67B | 600.06B | 424.05B | 88.26B | 175.77B | 227.24B | 150.91B | 152.47B | -112.56B | 189.57B | 153.52B | 254.36B | 372.91B | 417.26B | 400.17B | 577.17B | 625.63B | 518.32B | 441.44B | 446.5B | 432.32B | 374.19B | 264.1B |
| Net Interest Income | -155.22B | -117.67B | -984.34M | -111.19B | -117.67B | -128.65B | -1.36B | -60.96B | -6.78B | -6.97B | -10.29B | -17.52B | 18.58B | 67.21B | 20M | 4.86B | 547M | 9.76B | 56.48B | 56B | 33.85B | 17.76B | 10.54B | 9.71B | 8.85B | 8.91B |
| Interest Income | 223.91B | 19.64B | 78.1M | 5.51B | 4.59B | 1.78B | 103.03M | 6.62B | 39.54B | 12.27B | 21.64B | 15.36B | 49.3B | 16.3B | 6.3B | 1.73B | 1.98B | 11.38B | 62.06B | 56.24B | 34.21B | 18.1B | 10.9B | 10.13B | 9.61B | 9.93B |
| Interest Expense | 379.14B | 137.31B | 1.06B | 116.97B | 122.43B | 130.81B | 1.46B | 48.16B | 31.93B | 23.25B | 31.93B | 32.88B | 30.72B | 3.32B | 1.88B | 1.33B | 1.43B | 1.62B | 333M | 247M | 365M | 334M | 359M | 420M | 759M | 1.02B |
| Other Income/Expense | -297.16B | -167.5B | -161.28B | -115.42B | -158.27B | -143.03B | -161.16B | -110.07B | -24.58B | -12.52B | -10.29B | -16.18B | 19.58B | 10.56B | -12.55B | 4.49B | -4.38B | 92.08B | 153.72B | 166.88B | 115.15B | 55.82B | 74.51B | 121.21B | 92.18B | 36.97B |
| Pretax Income | 275.88B | 175.08B | 52.79B | 375.09B | 302.57B | 366.24B | -60.75B | 94.9B | 217.21B | 143.35B | 120.54B | -145.44B | 158.85B | 129.71B | 252.48B | 371.57B | 415.83B | 398.55B | 576.84B | 625.38B | 517.96B | 441.1B | 446.14B | 431.9B | 373.43B | 263.08B |
| Pretax Margin % | 5.77% | 3.82% | 1.24% | 9.31% | 8.48% | 11.45% | -1.85% | 4.52% | 12.27% | 8.28% | 6.67% | -8.18% | 9.39% | 8.33% | 16.73% | 26.18% | 28.37% | 25.91% | 41.96% | 47.92% | 42.73% | 39.28% | 41.07% | 41.29% | 37.15% | 27.3% |
| Income Tax | 72.27B | 66.94B | -91.41B | 58.05B | 72.41B | -9.94B | -105.04B | -14.12B | 30.5B | 27.83B | 37.06B | -2.4B | 49.29B | -3.88B | 125.21B | 121.33B | 115.67B | 161.35B | 218.77B | 285.84B | 201.36B | 160.23B | 157.91B | 157.49B | 134.89B | 114.15B |
| Effective Tax Rate % | 26.2% | 38.23% | -173.15% | 15.48% | 23.93% | -2.71% | 172.9% | -14.88% | 14.04% | 19.42% | 30.74% | 1.65% | 31.03% | -2.99% | 49.59% | 32.65% | 27.82% | 40.48% | 37.92% | 45.71% | 38.88% | 36.33% | 35.39% | 36.46% | 36.12% | 43.39% |
| Net Income | 203.33B | 107.93B | 144.07B | 317.02B | 230.06B | 376B | 44.24B | 109.13B | 186.89B | 114.94B | 80.17B | -145.78B | 106.66B | 131.24B | 124.16B | 247.87B | 297.74B | 234.38B | 355.45B | 335.81B | 313.25B | 277.44B | 285.26B | 271.76B | 235.66B | 146.85B |
| Net Margin % | 4.26% | 2.36% | 3.38% | 7.87% | 6.45% | 11.76% | 1.34% | 5.2% | 10.56% | 6.64% | 4.44% | -8.2% | 6.3% | 8.43% | 8.23% | 17.46% | 20.31% | 15.24% | 25.85% | 25.73% | 25.84% | 24.71% | 26.26% | 25.98% | 23.45% | 15.24% |
| Net Income Growth % | 88.39% | -25.08% | -54.56% | 37.8% | -38.81% | 749.9% | -59.46% | -41.61% | 62.59% | 43.38% | 154.99% | -236.68% | -18.73% | 5.7% | -49.91% | -16.75% | 27.03% | -34.06% | 5.85% | 7.2% | 12.91% | -2.74% | 4.97% | 15.32% | 60.47% | - |
| Net Income (Continuing) | 203.61B | 108.14B | 144.2B | 317.04B | 230.17B | 376.17B | 44.29B | 135.08B | 186.71B | 115.51B | 83.48B | -143.03B | 109.56B | 150.69B | 127.27B | 250.25B | 300.16B | 237.19B | 358.08B | 339.54B | 316.6B | 280.87B | 288.23B | 274.41B | 238.53B | 148.93B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.21B | 895M | 741M | 549M | 504M | 4.14B | 4B | 4.01B | 19.98B | 54.7B | 62.51B | 69.13B | 69.9B | 63.42B | 59.52B | 44.73B | 43.41B | 42.39B | 41.75B | 40.87B | 0 | 0 | 0 | 0 | 39.25B | 37.22B |
| EPS (Diluted) | 63.91 | 33.62 | 45.58 | 100.97 | 72.94 | 119.48 | 14.13 | 34.78 | 118.78 | 73.13 | 50.86 | -46.47 | 67.47 | 94.09 | 78.63 | 156.98 | 188.57 | 144.90 | 209.49 | 193.00 | 176.74 | 156.51 | 160.93 | 153.82 | 133.51 | 83.20 |
| EPS Growth % | 90.1% | -26.24% | -54.86% | 38.43% | -38.95% | 745.58% | -59.37% | -70.72% | 62.42% | 43.79% | 209.45% | -168.88% | -28.29% | 19.66% | -49.91% | -16.75% | 30.14% | -30.83% | 8.54% | 9.2% | 12.93% | -2.75% | 4.62% | 15.21% | 60.47% | - |
| EPS (Basic) | 63.91 | 34.17 | 46.05 | 102.15 | 73.57 | 120.36 | 14.21 | 34.78 | 119.68 | 73.58 | 51.13 | -46.47 | 67.55 | 94.11 | 78.65 | 157.01 | 188.60 | 144.91 | 209.49 | 193.00 | 176.74 | 156.51 | 160.93 | 153.82 | 133.51 | 83.20 |
| Diluted Shares Outstanding | 3.21B | 3.21B | 3.16B | 3.14B | 3.15B | 3.15B | 3.13B | 1.93B | 1.57B | 1.57B | 1.58B | 1.57B | 1.58B | 1.58B | 1.58B | 1.58B | 1.58B | 1.62B | 1.7B | 1.74B | 1.77B | 1.77B | 3.14B | 3.14B | 3.14B | 3.14B |
| Basic Shares Outstanding | 3.15B | 3.21B | 3.13B | 3.1B | 3.13B | 3.12B | 3.11B | 1.92B | 1.56B | 1.56B | 1.57B | 1.57B | 1.58B | 1.58B | 1.58B | 1.58B | 1.58B | 1.62B | 1.7B | 1.74B | 1.77B | 1.77B | 3.14B | 3.14B | 3.14B | 3.14B |
| Dividend Payout Ratio | 162.65% | 280.28% | 199.34% | 88.14% | 123.3% | 75.36% | 638.73% | 131% | 75.92% | 123.27% | 176.56% | - | 133.26% | 108.29% | 114.38% | 57.31% | 48.21% | 60.77% | 36.34% | 29.41% | 27.3% | 27.02% | 21.34% | 20.03% | 20.6% | 24.93% |
Margin compression from LOE
As reported in recent financial statements, Takeda's revenue growth has remained inconsistent, fluctuating between a 5.8% increase in 2025Q4 and a 5.4% contraction in 2025Q2, reflecting the ongoing challenge of offsetting the loss of exclusivity for key legacy assets like Vyvanse with new product launches.
The volatility in top-line performance suggests that the company is struggling to maintain a consistent growth trajectory as its core portfolio matures. Investors should monitor whether the subcutaneous formulation of Entyvio can sufficiently compensate for the revenue gaps created by patent expirations in the neuroscience segment.
Based on the provided income statement data, Takeda's gross margin has experienced significant compression, dropping from a peak of 68.0% in 2024Q1 to 48.8% by 2025Q4, which appears to indicate rising production costs or an unfavorable shift in the underlying product mix toward lower-margin therapies.
This contraction in gross profitability warrants further investigation into the cost of plasma collection and the impact of manufacturing complexities. The inability to sustain margins above 60% suggests that the company may lack the pricing power necessary to offset inflationary pressures in its specialized manufacturing operations.
According to the quarterly income statement, Takeda's operating income has shown extreme sensitivity to revenue fluctuations, with operating margins collapsing to 4.3% in 2025Q4, suggesting that the firm's high fixed-cost base prevents efficient scaling during periods of stagnant or declining top-line performance.
The lack of consistent operating leverage implies that management has limited flexibility to protect profitability when revenue growth stalls. This structural rigidity may force the company to prioritize cost-cutting measures over long-term R&D investment, potentially undermining future pipeline competitiveness.
As evidenced by the erratic net income figures, which swung from a $124.2B profit in 2025Q1 to a $24.8B loss in 2025Q4, Takeda's reported earnings appear heavily impacted by non-operating items and significant quarterly adjustments that complicate the assessment of true underlying operational performance.
The frequent swings in net income suggest that investors should rely more heavily on core operating metrics rather than headline EPS. The presence of large, inconsistent charges may indicate ongoing difficulties in integrating past acquisitions or managing the amortization of intangible assets effectively.
Based on the provided financial data, the primary risk to the investment thesis is the persistent erosion of operating margins, which fell from 13.8% in 2024Q1 to 4.3% in 2025Q4, suggesting that the company's current business model may be fundamentally incapable of generating consistent shareholder returns.
Short-sellers would likely focus on the inability of the firm to stabilize its cost structure despite its scale. If the current trend of margin compression continues, it may indicate that the competitive moat surrounding its plasma-derived therapies is not as durable as management suggests.
Quick answers to the most common questions about buying TAK stock.
For fiscal year 2025, Takeda Pharmaceutical Company Limited (TAK) reported total revenue of $4.78T. This represents a 395.9% increase compared to $963.48B in 2000.
Takeda Pharmaceutical Company Limited (TAK) is profitable, generating $203.33B in net income for the fiscal year ending 2025 with a net profit margin of 4.3%.
Takeda Pharmaceutical Company Limited (TAK) reported an operating income of $573.04B, resulting in an operating profit margin of 12.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Takeda Pharmaceutical Company Limited (TAK) generated $2.44T in gross profit for the year, representing a gross profit margin of 51.1%. This demonstrates the company's core pricing power and production efficiency.