Roche (ROG) H1 2025 earnings summary

Executive summary

• Group sales grew 7% at constant exchange rates (CER) to CHF 30.9 billion in H1 2025, driven by 10% growth in pharmaceuticals and stable diagnostics, with diagnostics impacted by China healthcare pricing reforms.

• Core operating profit increased 11% (CER) to CHF 12.0 billion; core EPS rose 12% (CER) to CHF 11.08; IFRS net income surged 23% (CER) to CHF 7.8 billion, mainly due to lower impairments.

• Young portfolio products such as Phesgo, Xolair, Hemlibra, Vabysmo, Ocrevus, and Polivy were key growth drivers.

• Significant regulatory and clinical milestones achieved, including US approval for Susvimo, EU approval for Itovebi and Evrysdi tablet, and advancement of multiple medicines to late-stage development.

• Swiss franc appreciation negatively impacted reported results by 3–6 percentage points across key metrics.

Financial highlights

• Group sales: CHF 30,944 million (+7% CER); Pharma CHF 23,985 million (+10% CER); Diagnostics CHF 6,959–7,000 million (0% CER).

• Core operating profit: CHF 12,010 million (+11% CER); margin improved to 38.8%.

• IFRS net income: CHF 7,832 million (+23% CER); core EPS: CHF 11.08 (+12% CER).

• Operating free cash flow decreased, mainly due to higher investments in intangible assets and collaboration payments.

• Net debt increased to CHF 21.0 billion, driven by dividend payments, acquisitions, and higher working capital.

Outlook and guidance

• 2025 outlook confirmed: group sales expected to grow mid-single digit (CER), core EPS high single digit (CER), and further dividend increase planned.

• LOE (loss of exclusivity) impact guidance lowered to CHF 1.0 billion from CHF 1.2 billion.

• Diagnostics division expects low single-digit growth in 2025, with China recovery anticipated towards year-end.

• Continued confidence in exceeding guidance, supported by strong pipeline and disciplined capital allocation.