Takeda Pharmaceutical Company Limited (TAK) AI Stock Analysis

Headquartered in Tokyo, Japan, Takeda Pharmaceutical Company Limited researches, develops, manufactures, and distributes pharmaceutical products across Japan, the United States, Europe, Canada, Latin America, Russia, and other parts of Asia. The company's portfolio targets therapeutic areas including gastroenterology, rare diseases, plasma-derived therapies, oncology, and neuroscience, offering treatments under brands such as Entyvio, Gattex/Revestive, Takecab, and Vyvanse. In addition to commercializing therapies, Takeda engages in strategic collaborations and research licensing agreements with institutions and biotechnology firms, including Neurocrine Biosciences, Inc., the University of Texas MD Anderson Cancer Center, and Arrowhead Pharmaceuticals Inc., to advance medical treatments and meet unmet healthcare needs.

Takeda delivered a 5-year revenue CAGR of 8.4% from FY2021 to FY2026. Annual revenue expanded from $3.57T in FY2022 to $4.03T in FY2023, $4.26T in FY2024, $4.58T in FY2025, and $4.78T in FY2026. Gross margin compressed from 69.0% in FY2022 to 51.1% in FY2026, while operating margin was 12.0% in FY2026 after dropping to 5.0% in FY2024. Annual net income reached $203.33B in FY2026, with EPS of $150.44. In the trailing twelve months, revenue was $4.62T with an operating margin of 16.4% and an eps_ttm of -$0.34. For the latest quarter ended June 30, 2026, quarterly revenue growth was 10.2%, while quarterly earnings fell 9.8%.

As of June 30, 2026, Takeda held cash and short-term investments of $527.58B against total debt of $4.94T, resulting in net debt of $4.41T and a debt-to-equity ratio of 0.65. Shareholders' equity was $7.56T and the current ratio stood at 1.14. In FY2026, operating cash flow reached $1.04T and free cash flow was $626.77B. Capital allocation during FY2026 included capital expenditures of $414.66B, share buybacks of $51.60B, and dividends paid of $311.90B, while share count changed 1.9% over 5 years.

TAK trades at a forward P/E of 11.5x, below the 17.3x forward P/E median of its US-listed Healthcare peers. Its EV to EBITDA ratio is 23.7x, compared to the peer median of 12.0x, and its price-to-sales ratio is 0.0x against the peer median of 4.1x. The company's PEG ratio stands at 0.42 and price-to-book is 1.3x. Over the past year, the stock returned 47.2%, outpacing the S&P 500 return of 16.8%. Over a 5-year horizon, TAK returned 71.9% compared to 83.0% for the S&P 500.

Takeda offers an annual forward dividend of $0.62 per share, representing a dividend yield of 3.13%, with its last ex-dividend date on September 29, 2026. The company has paid consecutive dividends for 19 years. The payout ratio is 279.9%, and the 5-year annualized dividend growth is -0.9%.

Wall Street sentiment reflects 3 Strong Buy ratings, with 0 Buy, 0 Hold, 0 Sell, and 0 StrongSell ratings. The mean price target is $22.75, representing a 15.7% upside relative to the last close of $19.67. For the fiscal year ending March 31, 2027, consensus estimates project revenue of $4.70T and EPS of $154.63, representing expected EPS growth of 153.5%. The company beat EPS estimates in 2 of the last 4 quarters. The next earnings date is October 29, 2026.

This page is an AI-written research summary of Takeda Pharmaceutical Company Limited (TAK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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