Roche (ROG) H1 2026 earnings summary

Executive summary

• Group sales grew 6% at constant exchange rates (CER), but declined 2% in CHF, driven by strong demand for innovative medicines and diagnostics, with Pharmaceuticals up 6% and Diagnostics up 3%.

• Core operating profit increased 10% at CER, with margin expansion of 1.7 percentage points and core EPS up 9% at CER; IFRS net income up 6% at CER but down 6% in CHF due to impairments and currency effects.

• Both Pharma and Diagnostics divisions contributed to growth, with top pharma drivers including Xolair, Hemlibra, Ocrevus, Phesgo, and Vabysmo.

• Major regulatory milestones included five US FDA Priority Reviews, multiple phase III readouts, and significant business development such as PathAI and Nurix Therapeutics partnerships.

• Free cash flow increased 58% at CER, with net debt rising by CHF 5.9 billion mainly due to dividend payments.

Financial highlights

• Group sales: CHF 30.4 billion (+6% CER, -2% CHF); Pharma CHF 23.6 billion (+6% CER), Diagnostics CHF 6.7 billion (+3% CER).

• Core operating profit: CHF 11.9 billion (+10% CER, -1% CHF); core EPS: CHF 10.85 (+9% CER, -2% CHF); IFRS net income: CHF 7.3 billion (+6% CER, -6% CHF).

• Free cash flow: CHF 4.2 billion (+58% CER, +26% CHF), supported by lower tax payments and improved working capital.

• Core tax rate stable at 17.5%, expected to rise to ~20% for the full year.

• Net debt increased to CHF 22.1 billion, mainly due to CHF 8.3 billion dividend payments.

Outlook and guidance

• 2026 outlook confirmed: mid-single-digit group sales growth and high-single-digit core EPS growth at CER expected.

• Loss of exclusivity (LOE) impact for 2026 now expected at CHF 600 million.

• Dividend in Swiss francs expected to increase further; ambition to keep Diagnostics margin stable despite China reforms and U.S. tariffs.