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 currency headwinds.

• Core operating profit increased 13% (CER) to CHF 21.8 billion, and core EPS rose 11%, with IFRS net income surging 58% due to strong operational performance and absence of prior year impairments.

• Major pipeline momentum with 10–12 new NMEs advancing to Phase 3 and multiple positive Phase 3 readouts in oncology, neurology, immunology, and obesity.

• Dividend increase to CHF 9.80 per share proposed, marking the 39th consecutive annual increase.

• Upgraded guidance delivered for 2026: mid-single-digit sales growth, high single-digit core EPS growth, and further dividend increases.

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).

• Operating free cash flow CHF 16.2 billion, down from CHF 20.2 billion, mainly due to 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

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

• Diagnostics expects mid-single-digit growth in 2026, with China headwinds diminishing and gone by 2027.

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

• Margin expansion targeted for 2026, with R&D expenses expected to remain broadly flat.

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