Roche Holding Ltd

Latest Results (26.04.2026):

Roche Holding Ltd — full‑year 2025 (annual results): Group sales CHF 61.5 billion (+7% at constant exchange rates, +2% in CHF). IFRS net income CHF 13.8 billion (+58% CER) and net income attributable to Roche shareholders CHF 12.9 billion; Core EPS CHF 19.46 (+11% CER). Core operating profit was CHF 21.8 billion (35.5% margin). The 2025 results were materially affected by the appreciation of the Swiss franc, which reduced reported CHF growth; the Board proposes a CHF 9.80 dividend (+1%).

Top-line and currency impact

Group sales: CHF 61,516m (+7% CER; +2% in CHF). Pharmaceuticals grew 9% CER to CHF 47,669m; Diagnostics grew 2% CER to CHF 13,847m. Management notes the Swiss franc appreciation trimmed reported CHF growth (negative ~5 pp on sales and larger effects on profit metrics).

Profitability and earnings

Core operating profit: CHF 21,833m (+13% CER) with a 35.5% core margin (vs 34.4% in 2024). IFRS operating profit: CHF 18,476m (+48% CER) reflecting a lower base of 2024 goodwill impairments. IFRS net income: CHF 13,799m (+58% CER). Core diluted EPS: CHF 19.46 (+11% CER); IFRS diluted EPS: CHF 16.04.

Divisional performance

Pharmaceuticals: sales CHF 47,669m (+9% CER), core operating profit CHF 23,440m (49.2% margin). Diagnostics: sales CHF 13,847m (+2% CER), core operating profit CHF 1,998m (14.4% margin); Diagnostics performance was weighed down by China pricing reforms and instrument/manufacturing costs.

Cash flow and balance sheet

Operating free cash flow CHF 16,163m (‑12% CER; ‑20% in CHF). Free cash flow CHF 11,807m (‑15% CER). Net debt decreased to CHF 16,160m (from CHF 17,337m) despite acquisitions and dividends; capitalisation CHF 69,516m. Working capital rose (trade receivables increase) following sales uptake.

Shareholder return

Proposed dividend CHF 9.80 per share (+1%), representing the 39th consecutive year of dividend growth and a proposed pay‑out ratio ~50.4% (subject to AGM). Total shareholder return for 2025 was +32.0%.

Key product drivers

Main growth contributors: Ocrevus CHF 7,010m (+9%), Vabysmo CHF 4,102m (+12%), Hemlibra CHF 4,754m (+11%), Phesgo CHF 2,441m (+48%), Xolair (US) CHF 3,075m (+32%), Polivy CHF 1,470m (+38%). Legacy products continue to face biosimilar/generic pressure (e.g., Avastin/Herceptin/MabThera/Rituxan total CHF 3,252m, ‑14% CER).

M&A, alliances and R&D

2025 transactions: acquisitions completed — Poseida (total ~USD 1.1bn), 89bio (initial cash USD 2.4bn), Pentavision (initial cash USD 0.4bn). In‑licensing/alliances generated CHF 2.5bn of intangible assets (including CHF 1.2bn for the Zealand Pharma petrelintide collaboration). Core R&D spend (core basis) was CHF 12,243m (‑3% CER) as optimisation partially offset targeted investments.

Restructuring, impairments and tax

Global restructuring costs CHF 2,164m in 2025 (employee, site and other charges). Impairments and amortisation: reconciling impairment/amortisation items were substantially lower than 2024 (2024 included CHF 3.2bn goodwill impairment). The effective core tax rate rose to 18.6% (+1.9 percentage points), and core net income was CHF 16,575m (+11% CER).