Roche (ROG) H2 2025 earnings summary

Executive summary

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

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

• IFRS net income surged 58% to CHF 13.8 billion, mainly due to a favorable base effect and lower non-core charges.

• Major pipeline progress with multiple positive Phase 3 readouts in oncology, neurology, immunology, and obesity, and 10 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), 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); core net income: CHF 16.6 billion (+11%).

• Operating free cash flow was CHF 16.2 billion, down from CHF 20.2 billion, impacted by higher receivables and investments.

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

Outlook and guidance

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

• Dividend in Swiss francs expected to increase further.

• Pipeline readouts in 2026 and beyond expected to drive continued growth, with 19 potential launches by 2030.

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