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 healthcare pricing reforms and adverse currency effects.

• Core operating profit increased 13% (CER), core EPS rose 11% (CER), and IFRS net income surged 58%, mainly due to the absence of prior-year impairments and strong operational performance.

• Strong pipeline momentum with multiple positive Phase 3 readouts in oncology, neurology, immunology, and obesity, and 10 new NMEs entering Phase III.

• Upgraded guidance delivered, with mid-single-digit sales growth and high single-digit to low double-digit core EPS growth, and a proposed 1% dividend increase to CHF 9.80 per share, marking the 39th consecutive annual increase.

• Diagnostics growth was impacted by China reforms but is expected to recover as headwinds diminish in 2026.

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); IFRS net income: CHF 13.8 billion (+58% CER); Core EPS: CHF 19.46 (+11% CER).

• Operating free cash flow: CHF 16.2 billion, down from CHF 20.2 billion, mainly due to higher receivables and inventory build.

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

• Dividend proposed at CHF 9.80 per share, continuing the trend of annual increases.

Outlook and guidance

• 2026 guidance: mid-single-digit group sales growth and high single-digit core EPS growth at CER, with further dividend increases planned in Swiss francs.

• Loss of exclusivity impact expected at CHF 1 billion for 2026, similar to 2025.

• Diagnostics division expects mid-single-digit growth in 2026, with China headwinds diminishing.

• Multiple Phase 3 and Phase 2 readouts expected in 2026 and beyond, supporting sustained growth.