Roche Holdings AG (RHHBY) delivered a solid performance in fiscal 2025, posting sales of CHF 61.5 billion (around $76.96 billion), up 7% in reported terms and 2% in constant currency. The Swiss pharmaceutical giant benefited from strong demand across both its drug portfolio and diagnostic solutions.
The company's core operating profit increased 13% to CHF 21.8 billion, driven by higher sales volumes and operational efficiency improvements. Core earnings per share climbed 11% to CHF 19.46 ($24.35), showing healthy profit expansion.
Pharma Division Powers Ahead
The Pharmaceuticals Division was the star performer, with sales jumping 9% to CHF 47.7 billion. The growth came from medicines treating severe diseases, particularly five standout products that together pulled in CHF 21.4 billion—an increase of CHF 3.2 billion compared to the prior year.
Phesgo led the charge with a remarkable 48% surge to CHF 2.44 billion in revenue. Xolair wasn't far behind, posting 32% growth to CHF 3.07 billion. The other three heavy hitters also delivered double-digit gains: Vabysmo climbed 12% to CHF 4.10 billion, Hemlibra jumped 11% to CHF 4.75 billion, and Ocrevus rose 9% to CHF 7.01 billion.
Meanwhile, older products facing patent expirations took their expected hit. Legacy blockbusters including Avastin (cancer treatment), Herceptin (breast and gastric cancer), MabThera/Rituxan (blood cancer and rheumatoid arthritis), Esbriet (lung disease), Lucentis (eye diseases), and Actemra/RoActemra (rheumatoid arthritis) collectively declined by CHF 0.7 billion.
The Diagnostics Division managed 2% growth to CHF 13.8 billion, though that translated to a 3% decline in constant currency terms. Increased demand for pathology and molecular solutions helped offset pressure from healthcare pricing reforms in China.
Innovation and Future Outlook
CEO Thomas Schinecker highlighted the company's focus on operational and research excellence. "2025 was a strong year for Roche, reflecting our continued focus on operational and R&D excellence," he said Thursday.
He also pointed to a breakthrough in diagnostics: "We are also setting new standards in diagnostics: our next-generation sequencing technology, which will be launched this year, decoded an entire human genome in less than four hours."
Looking ahead to 2026, Roche expects sales growth in the mid-single-digit range on a constant currency basis. Core earnings per share are projected to grow in the high single-digit range.
Shareholder Returns Continue
The board is recommending a dividend increase to CHF 9.80 per share and per non-voting equity security. If shareholders approve the proposal, it would mark the 39th consecutive year of dividend increases—an impressive streak of shareholder-friendly capital allocation.
Roche shares rose 2.79% to $55.91 on Thursday, nearing the stock's 52-week high of $57.29.
