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Sales Growth: Overall sales increased by 7% at constant exchange rates, with 9% growth in the Pharma division and 2% in Diagnostics.
Core Operating Profit: Increased by 13%, indicating effective cost management and strategic investments.
IFRS Net Income: Up 58%, primarily due to a base effect from last year’s goodwill impairments.
Cash Flow: Operating free cash flow was CHF 16.2 billion, down from CHF 20.2 billion, influenced by strong December sales and increased accounts receivables.
Net Debt: Reduced by CHF 1.1 billion, aided by a weaker US dollar.
Pharma Sales: Reached CHF 47.7 billion, with a 9% growth rate at constant exchange rates.
Diagnostics Sales: CHF 13.8 billion, with a 2% growth rate, impacted by healthcare pricing reforms in China.
R&D Costs: Decreased by 3% in Pharma, attributed to operational efficiencies.
Tax Rate: Effective tax rate for 2025 was 18.6%, with an expectation to hover around 20% in 2026.
Core EPS Growth: Driven by operational performance, despite higher tax expenses.
Dividend Outlook: Expectation to continue increasing the dividend in Swiss francs.
2026 Guidance: Mid-single-digit sales growth and high single-digit core EPS growth expected.
Release Date: January 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Roche Holding AG (RHHBF) reported strong pipeline progress with 10 NMEs moving into Phase III, a record for the company.
The company has seen positive Phase III readouts for several key drugs, including giredestrant and fenebrutinib, which are expected to become new standards of care in their respective fields.
Roche Holding AG (RHHBF) has secured a contract with the US government, providing exemptions from tariffs and demo projects, in exchange for Medicaid rebates and investments in the US.
The company has a strong on-market portfolio with 16 blockbusters across five therapeutic areas, contributing to sustained growth momentum.
Roche Holding AG (RHHBF) expects mid-single-digit sales growth and high single-digit core EPS growth for 2026, with plans to further increase dividends in Swiss francs.
Roche Holding AG (RHHBF) faced headwinds in China due to healthcare pricing reforms, impacting sales growth in the Diagnostics division.
The company’s cash flow decreased from CHF20.2 billion to CHF16.2 billion, partly due to increased accounts receivables and inventory levels.
The Diagnostics division experienced a decline in core operating profit margin due to increased costs related to new technology production and healthcare reforms in China.
Roche Holding AG (RHHBF) anticipates a continued impact from currency fluctuations, with a potential negative effect on sales and core operating profit in 2026.
The company faces challenges from biosimilar competition, particularly in the US and Europe, which could impact sales of key products like Xolair and Perjeta.
Q: Can you provide more details on the growth outlook for Vabysmo and the impact of funding comments? A: Teresa Graham, CEO of Roche Pharmaceuticals, explained that while specific funding amounts are not disclosed, Roche doubled its donations last year, which was a significant increase. The company expects 2025 to represent a rebaselining of the branded market in the US, with an acceleration in Vabysmo’s growth anticipated in 2026.
Q: What is the minimum target profile for Roche’s obesity treatment, and how does it compare to other BTK inhibitors? A: Teresa Graham stated that Roche aims for petrelintide to deliver a weight loss of 10-20% with an improved tolerability profile compared to GLP classes. Regarding fenebrutinib, she emphasized that the CRL for tolebrutinib is specific to its risk-benefit profile and does not apply to fenebrutinib, which has shown a manageable safety profile and high efficacy.
Q: How does Roche view the potential of fenebrutinib compared to OCREVUS, and what is the market feedback on the new sequencing offering? A: Teresa Graham highlighted that fenebrutinib has best-in-class potential and, together with OCREVUS, offers a range of highly efficacious therapies for MS patients. Matthew Sause, CEO of Roche Diagnostics, reported high demand for the new sequencing offering, with interest in a broad range of applications, indicating strong market potential.
Q: What are the expectations for giredestrant’s commercial potential in the adjuvant setting, and how does Roche view biosimilar erosion? A: Teresa Graham noted that the adjuvant market is significant, with giredestrant having the potential to become a new standard of care. Regarding biosimilars, she explained that the impact varies by therapy and region, with some therapies experiencing immediate declines and others, like Xolair, being more resilient due to patient and physician preferences.
Q: How does Roche plan to balance R&D investment with profitability, and what is the outlook for R&D expenses? A: Thomas Schinecker, CEO of Roche Holding AG, emphasized the company’s focus on being a high-performing, cost-efficient organization, with AI playing a significant role in reducing costs and speeding up development. R&D expenses are expected to remain broadly flat in 2026, with a continued focus on disciplined investment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.