Roche (ROG) Q1 2026 earnings summary

Executive summary

• Group sales grew 6% at constant exchange rates (CER) in Q1 2026, led by Pharma (+7%) and Diagnostics (+3%), with Diagnostics growth at +5% excluding China due to ongoing healthcare pricing reforms and a weaker flu season impacting respiratory sales.

• Strong pipeline progress with multiple pivotal Phase III readouts and regulatory filings across oncology, neurology, immunology, and obesity, including giredestrant, Lunsumio + Polivy, and Gazyva in various indications.

• Key growth drivers included Xolair, Phesgo, Hemlibra, Vabysmo, Ocrevus, and Polivy, while Xofluza was negatively affected by the low flu season.

• Strategic investments in AI and digital transformation, including expanded collaboration with NVIDIA and acquisition of SAGA Diagnostics to enhance oncology capabilities.

• Confirmed guidance for mid-single-digit sales growth, high single-digit core EPS growth, and further dividend increase in Swiss francs.

Financial highlights

• Group sales reached CHF 14.7 billion in Q1 2026 (+6% CER, -5% CHF, +9% USD); Pharmaceuticals CHF 11.5 billion (+7% CER), Diagnostics CHF 3.3 billion (+3% CER).

• Top five pharmaceutical growth drivers delivered CHF 5.3 billion in sales (+14% CER).

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

• Currency headwinds led to a -5% decline in Swiss francs, with a CHF 1.6 billion negative impact from FX conversion; negative currency effects, mainly from USD, JPY, CNY, and EUR, reduced reported growth by 6.7 percentage points.

Outlook and guidance

• Guidance confirmed for mid-single-digit sales growth and high single-digit core EPS growth for 2026 at CER, with further dividend increase planned in Swiss francs.

• Up to 19 new molecular entities (NMEs) could launch between 2027 and 2030, supporting long-term growth.

• LOE impact of CHF 1 billion expected to be offset by business growth.