January 29, 2026
Finance

Roche Projects Consistent Growth into 2026 Fueled by Key Pharmaceutical Advances

Robust 2025 financials highlight expanding sales and core earnings driven by top-performing drugs and diagnostic innovation

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Summary

Roche Holdings AG delivered solid financial results for fiscal 2025, reporting a 7% increase in sales to 61.5 billion Swiss Francs. Growth was driven by pharmaceutical product demand and diagnostic solutions, alongside efficiency improvements boosting core profit by 13%. Looking ahead, Roche anticipates mid single-digit sales growth and high single-digit core earnings per share growth for 2026, supported by strong performances from major drugs and advancements in diagnostics technology. The company also proposed a dividend increase marking its 39th consecutive raise.

Key Points

Fiscal 2025 sales rose 7% to 61.5 billion Swiss Francs driven by pharmaceutical and diagnostics demand.
Core operating profit increased 13%, aided by sales growth and efficiency improvements.
Pharmaceutical segment sales grew 9%, led by five key drugs with combined sales of CHF 21.4 billion.
Diagnostics revenue up 2% (CER) despite pricing reforms in China, supported by pathology and molecular solutions demand.

Roche Holdings AG concluded its fiscal year 2025 with robust financial performance, evidencing a 7% sales growth (2% in Swiss Franc terms) reaching 61.5 billion Swiss Francs, approximately $76.96 billion. This increase reflects sustained global demand for its pharmaceutical products and innovations in diagnostics solutions.

The company's core operating profit saw a significant rise of 13% (5% in CHF), reaching 21.8 billion Swiss Francs. This uplift was primarily driven by increased sales volumes complemented by operational efficiency improvements. Furthermore, core earnings per share rose by 11% (+4% in CHF), ending the year at CHF 19.46, equivalent to $24.35 USD.

Examining segment-specific results, Roche's Pharmaceuticals Division contributed strongly with a 9% increase in sales (3% in CHF) to 47.7 billion Swiss Francs, highlighting the continued market demand for treatments addressing severe medical conditions. The growth within this division was predominantly propelled by five key medicines: Phesgo, Xolair, Ocrevus, Hemlibra, and Vabysmo. Collectively, these drugs achieved combined sales of CHF 21.4 billion, marking a growth of CHF 3.2 billion on a constant exchange rate basis compared to 2024.

Individually, Ocrevus sales grew by 9% to CHF 7.01 billion, while Hemlibra experienced an 11% rise, reaching CHF 4.75 billion. Vabysmo sales increased by 12% to CHF 4.10 billion. Notably, Xolair exhibited the largest percentage increase among these, surging 32% to CHF 3.07 billion. Phesgo sales rose sharply by 48% to CHF 2.44 billion, underscoring its expanding market share.

On the other hand, products facing patent expirations collectively saw a sales decline of CHF 0.7 billion (CER). These include Avastin, used for various cancer types; Herceptin, targeting breast and gastric cancers; MabThera/Rituxan, treating blood cancers and rheumatoid arthritis; Esbriet for lung disease; Lucentis for severe eye conditions; and Actemra/RoActemra prescribed for rheumatoid arthritis.

In the Diagnostics Division, revenue increased by 2% on a constant currency basis but declined by 3% in CHF to CHF 13.8 billion. The uplift was primarily driven by heightened demand for pathology and molecular diagnostic solutions. This growth was sufficient to offset the negative effects of healthcare pricing reforms implemented in China.

Commenting on the fiscal year, Roche CEO Thomas Schinecker stated, "2025 was a strong year for Roche, reflecting our continued focus on operational and R&D excellence." He highlighted the company's pioneering work in diagnostics, noting the upcoming launch of next-generation sequencing technology capable of decoding an entire human genome in under four hours, representing a significant advancement in the field.

Looking forward to 2026, Roche has outlined expectations for continued positive momentum. The company forecasts sales growth in the mid single-digit range on a constant exchange rate basis. Additionally, it anticipates core earnings per share to advance within the high single-digit percentage range (CER), signaling confidence in the durability of its earnings trajectory amid ongoing market dynamics.

Alongside these financial expectations, Roche announced plans to increase its dividend denominated in Swiss francs. The board proposed elevating the dividend to CHF 9.80 per share for both voting and non-voting equity securities. Pending shareholder approval, this increment would represent the 39th consecutive annual dividend increase for the company, reinforcing its commitment to shareholder returns.

Regarding market performance, Roche Holdings' shares were trading at $55.91 at the time of reporting, having appreciated by 2.79% on the day. The stock is nearing its 52-week high of $57.29, reflecting positive investor sentiment likely influenced by the latest strong financial results and growth outlook.

Risks
  • Sales decline in drugs with expired patents impacting overall pharmaceutical revenue.
  • Healthcare pricing reforms in China exert downward pressure on diagnostics revenue in CHF terms.
  • Market and currency fluctuations may affect reported revenue and profit figures.
  • Shareholder approval required for proposed dividend increase; potential for changes.
Disclosure
Education only / not financial advice
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