Group Revenue and Profit Growth
Group sales grew 7% (FY2025). Pharma sales up 9% and Diagnostics up 2% (would be +7% ex-China). Core operating profit increased 13% with a core operating margin expansion of +1.9 percentage points; core EPS rose ~11%.
Roche Holding
· RHHBY
January 29th, 2026
Summary
- Earnings Call Date:
- 2026-01-29
- Change Since:
- -8.39%
- Next Earnings Date:
- 2026-07-23
Earnings Call Sentiment
PositiveThe call struck a broadly positive tone: Roche reported solid FY2025 financial results (7% sales growth, +13% core operating profit) and delivered exceptional pipeline momentum with multiple Phase III and regulatory successes (including record progression of NMEs to Phase III and major readouts for fenebrutinib and giredestrant). Management reiterated disciplined capital allocation, upgraded guidance execution and substantial near-term commercial opportunities (AXELIOS sequencing, diagnostics menu expansion, several on-market growth drivers). Key headwinds include significant Diagnostics disruption from China pricing reforms (CHF ~579m impact), weaker operating cash flow driven by working capital build, an increased tax burden affecting EPS momentum, currency and tariff pressures, and regulatory/safety uncertainty in the BTK space. On balance, the quantity and quality of positive clinical readouts, approvals and commercial traction materially outweigh the operational and macro headwinds reported.
Company Guidance
Roche guided 2026 to mid‑single‑digit group sales growth and high‑single‑digit core EPS growth, signaled a further Swiss‑franc dividend increase, and expects Diagnostics to grow mid‑single‑digits this year as China headwinds subside; management flagged an estimated loss‑of‑exclusivity impact of roughly CHF 1.0bn for 2026, a tax rate around 20% (versus 18.6% in 2025), and set a core‑EPS starting base of CHF 19.83 per share (after a CHF 0.37 FX/non‑monetary adjustment). For context they delivered 2025 group sales +7% (Pharma +9%, Diagnostics +2% / +7% ex‑China), core operating profit +13% and an operating free cash flow of CHF 16.2bn, expect a stronger cash year in 2026, and warned to model a divisional accounting shift that moves ~CHF 250m SG&A out of Pharma and ~CHF 50m out of Diagnostics into Corporate (≈‑0.5 and ‑0.4 percentage‑point margin effects).
Strong Pharma Commercial Performance
Multiple on-market drivers: Phesgo global conversion >50% (now ~54%), Ocrevus passed CHF 7 billion annual sales and is targeted to reach CHF 9 billion by 2029 (including ~CHF 2 billion from subcut), Hematology +15% (CHF 8.6bn), Polivy US patient share ~36%, Xolair grew ~32% (reaching ~CHF 3bn), Evrysdi >21,000 patients on treatment, Vabysmo continued global growth (12% for year) with expected acceleration in 2026.
Exceptional Q4 and Pipeline Readouts
Busy positive Q4 pipeline: two positive Phase III fenebrutinib readouts (PPMS FENtrepid and RMS FENhance 2), positive giredestrant lidERA (adjuvant HR 0.70 for IDFS; OS trending HR 0.79), additional positive Phase III results for Gazyva (INS, SLE), positive Phase III for Enspryng in MOG-AD, PiaSky in aHUS, and positive Phase II CT-388 in obesity.
Record R&D Progress — Late-Stage Acceleration
A record 10 NMEs moved into Phase III (company statement); 19 potential launches planned by decade-end (not all assured). Management notes >60% of NMEs post-bar and 66% of late-stage projects have best-in-disease potential.
Regulatory and Launch Milestones
Regulatory wins and filings: EU approval for Gazyva in lupus nephritis; U.S. and EU approvals for subcutaneous Lunsumio; U.S. filing for giredestrant in post-CDKi metastatic ER+/HER2- breast cancer. Diagnostics approvals include Elecsys dengue test, cobas BV/CV and Mass Spec menu expansion.
Diagnostics Innovation and Commercial Opportunities
Launch of AXELIOS Sequencing Solution (next-generation sequencing) with management citing >CHF 1 billion sales potential, plus a first fully automated clinical mass spec (cobas Mass Spec 601) and new assays (dengue antigen, cobas BV/CV).
Cash Deployment and US Investment Agreement
Agreement with U.S. government provides tariff and demo exemptions in exchange for commitments (including Medicaid rebates) and a pledged US investment of USD 50 billion over five years (R&D and PP&E), supporting manufacturing and R&D expansion in U.S. sites.
Operational Discipline and Guidance Delivery
Company delivered on upgraded guidance: FY sales growth of 7% (mid-single-digit target) and core EPS upgraded and achieved in the double-digit band; 2026 guidance set to mid-single-digit sales growth and high single-digit core EPS growth with expectation to further increase dividend in CHF.
Operator
Ladies and gentlemen, welcome to Roche's Full Year Results Webinar 2025. My name is [ Henrik, ] and I'm the technical operator for today's call. Kindly note that the webinar is being recorded. [Operator Instructions] One last remark. If you would like to follow the presented slides on your end as well, please feel free to go to roche.com/investors to download the presentation. At this time, it's my pleasure to introduce you to Thomas Schinecker, CEO of Roche Group. Mr. Schinecker, the stage is yours.
Thomas Schinecker
Thank you very much, and good morning, good afternoon and good evening. I'm really, really excited to share with you the update for the full year because we had an amazing fourth quarter, not only in terms of financial results, but also in terms of pipeline news. So let me get started on the normal overview slide. So group sales in 2025 grew with 7%, Pharma at 9%, Diagnostics at 2%. Again, this was due to the China healthcare pricing reforms. Without that, Diagnostics actually grew with 7% last year with a very strong operating performance with a core operating profit of plus 13% and a core operating margin plus 1.9 percentage points and core EPS plus 11%. So you may ask what's the difference between EPS and OP? Why is there a deceleration there?
This is basically mostly driven through higher taxes. On the full year LOE impacts, we had impact of about CHF 700 million. Now I come really to the exciting part. We had truly an outstanding Q4 when it comes to pipeline news. From a pharma regulatory perspective, the EU approval for Gazyva in lupus nephritis, U.S. and EU approval for ...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free