Roche Holding Ag Stock Earnings Reports

Roche reported a strong H1 2026: sales grew ~6% at constant currencies (pharma +6%, diagnostics +3% with diagnostics +6% excluding China), core operating profit rose 10% and core EPS grew ~9%. Management highlighted continued margin expansion (core operating margin +1.7 pp) driven by both divisions and disciplined cost control. Diagnostics faced headwinds from Chinese pricing reform and a mild respiratory/flu season (~CHF 200–250m impact), but launched several strategic products (AXELIOS sequencing, Elecsys pTau217, Elecsys IGRA TB) and completed the PathAI deal to bolster digital pathology. Pharma delivered substantial pipeline and regulatory progress: five FDA priority reviews, positive Phase III readouts (including KRASCENDO-1 for divarasib), multiple upcoming readouts and filings (e.g., giradestrant, tebentriq/Gazyva indications, thyroid eye disease), and notable BD additions (BTK degrader via Nurix, PathAI). Key product updates: strong Hemlibra growth and next-gen NXT007 progress; Vabysmo continuing share gains with expected low-double-digit ex-U.S. growth; Ocrevus subcutaneous driving neurology growth but facing increased anti-CD20 competition; Polivy, Lunsumio and Columvi advancing in hematology. Guidance: maintaining mid-single-digit sales growth and high single-digit core EPS growth for 2026; guidance updated for expected loss-of-exclusivity (LOE) impact of ~CHF 600 million for 2026. Cash flow remained robust (operating free cash flow +21%), gross debt stable, and Roche reiterated dividend increases and disciplined capital allocation focused on high-value internal R&D complemented by selective BD.