Roche Holding Ltd

Latest Results (28.01.2026):

Roche Holding Ltd — Half‑Year results for the six months ended 30 June 2025 (H1 2025, covering Q2 2025). The Group reported sales of CHF 30,944m (+4% in CHF; +7% at constant exchange rates), IFRS operating profit of CHF 10,330m (+14% CHF; +19% CER) and IFRS net income of CHF 7,832m (+17% CHF; +23% CER). On a core basis, core operating profit was CHF 12,010m (+6% CHF; +11% CER) and Core diluted EPS was CHF 11.08 (+8% CHF; +12% CER). Free cash flow was CHF 3,319m (down 41% in CHF; –37% CER), and net debt increased to CHF 21,005m at 30 June 2025.

Key headline figures

Group sales CHF 30,944m (+7% CER), IFRS operating profit CHF 10,330m, IFRS net income CHF 7,832m; core operating profit CHF 12,010m and Core diluted EPS CHF 11.08. Appreciation of the Swiss franc reduced reported growth (about –3 p.p. on sales and larger impacts on profit measures).

Pharmaceuticals division

Pharmaceuticals sales CHF 23,985m (+6% in CHF; +10% CER) with a core operating margin of 52.2% (up from 50.4%). Growth was driven by products including Phesgo, Xolair, Hemlibra, Vabysmo, Ocrevus and Polivy; strong launches/roll‑outs (e.g., Vabysmo, Phesgo) offset continued biosimilar/generic erosion on older medicines.

Diagnostics division

Diagnostics sales CHF 6,959m (stable; +0.3% CER) but core operating profit fell (–14% CER) and core margin declined to 18.0% (from 22.0%), primarily due to healthcare pricing reforms in China, higher cost of sales and ramp‑up costs for new products/instrument installs.

Profitability: core vs IFRS

Core results (which exclude restructuring, amortisation/impairment and other non‑core items) show underlying strength: core operating profit +11% CER. IFRS results benefited from lower impairment charges versus prior year, contributing to a larger IFRS net income increase (+23% CER) than on a core basis (+13% CER).

Cash flow and balance sheet

Operating free cash flow CHF 6,114m (–24% CHF; –20% CER) and free cash flow CHF 3,319m (–41% CHF; –37% CER). Net debt rose to CHF 21,005m (up 21% vs 31 Dec 2024), reflecting dividend payments (CHF 7.9bn) and acquisition payments (e.g., Poseida ~USD1.1bn) partly offset by cash generation.

Restructuring, impairments and M&A

Global restructuring charges of CHF 1,023m in H1 2025 (employee‑related, site and reorganisation costs). Impairment and amortisation: intangible amortisation ~CHF 289m (core reconciling), goodwill/intangible impairments reported (notable CHF 104m full impairment of SPK‑9001 asset and CHF 39m goodwill write‑off at Medingo). Completed acquisition: Poseida. Major alliance: Zealand Pharma collaboration (initial intangible recognised ~CHF 1.2bn).

Product performance and competitive pressures

Strong product drivers: Ocrevus, Vabysmo, Hemlibra, Xolair, Phesgo and Polivy. Offsetting pressures from biosimilars and generics on legacy products (Avastin, Herceptin, MabThera/Rituxan, Esbriet, Lucentis), with meaningful declines in those lines. Management cites FX headwinds (Swiss franc appreciation) as a material negative on reported results.