Roche (ROG) H2 2025 earnings summary

Executive summary

• Group sales grew 7% at constant exchange rates (CER) to CHF 61.5 billion, with Pharmaceuticals up 9% and Diagnostics up 2%, despite China pricing reforms and Swiss franc appreciation.

• Core operating profit increased 13% (CER) to CHF 21.8 billion, and core EPS rose 11% (CER), both exceeding upgraded guidance.

• IFRS net income surged 58% (CER) to CHF 13.8 billion, mainly due to strong operational performance and absence of prior year goodwill impairments.

• Robust pipeline progress with multiple positive Phase 3 readouts in oncology, neurology, immunology, and obesity, and 10–12 new NMEs entering Phase III.

• Board proposes a dividend increase to CHF 9.80 per share, marking the 39th consecutive annual increase.

Financial highlights

• Group sales: CHF 61.5 billion (+7% CER, +2% CHF); Pharmaceuticals: CHF 47.7 billion (+9% CER); Diagnostics: CHF 13.8 billion (+2% CER).

• Core operating profit: CHF 21.8 billion (+13% CER); core EPS: CHF 19.46 (+11% CER); IFRS net income: CHF 13.8 billion (+58% CER).

• Operating free cash flow was CHF 16.2 billion, down from CHF 20.2 billion, impacted by higher receivables and inventory build-up.

• Net debt reduced by CHF 1.2 billion to CHF 16.2 billion; equity ratio improved to 38%.

• Dividend payout ratio: 50.4% of core net income.

Outlook and guidance

• For 2026, expects mid single-digit group sales growth and high single-digit core EPS growth (CER).

• Dividend in Swiss francs expected to increase further, subject to AGM approval.

• Pipeline readouts and 19 potential launches by 2030 expected to drive continued growth.

• Loss of exclusivity impact estimated at CHF 1 billion for 2026.

• Ongoing adverse currency effects anticipated if Swiss franc remains strong.