Roche (ROG SW) FY25 (CHF) Revenue 61.5bln (exp. 61.5bln), Core EPS 19.46 (exp. 19.66), Core Op. Profit 21.8bln (exp. 21.8bln); Sees 2026 sales growth in mid single digit range, expects to further increase dividend in CHF

• Board proposes a dividend increase to CHF 9.80 per share and non-voting equity security. If approved by shareholders, this would be the 39th consecutive dividend increase.

• Pharmaceuticals Division sales increased by 9% (3% in CHF), with Phesgo (breast cancer), Xolair (food allergies), Ocrevus (multiple sclerosis), Hemlibra (haemophilia A) and Vabysmo (severe eye diseases) being the top growth drivers.
• Diagnostics Division sales grew 2% (-3% in CHF) as demand for pathology and molecular solutions continued to more than offset the impact of healthcare pricing reforms in China.

• In the United States, sales rose by 8% due to continued growth of Xolair and continuing uptake of Ocrevus, Phesgo, Hemlibra and Polivy (blood cancer). This growth more than compensated for the decline in sales of medicines with expired patents.
• Sales in Europe grew 5% as strong demand for Ocrevus and Vabysmo and the continuing uptake of Polivy, Hemlibra and Phesgo more than compensated for the lower sales of Perjeta (breast cancer) due to the ongoing conversion of patients to Phesgo, and the impact of biosimilar competition on Actemra/RoActemra sales.
• Sales in Asia-Pacific decreased by 12% due to healthcare pricing reforms in China.

Roche's FY25 earnings results are largely in line with expectations, but a slight miss on Core EPS could raise questions about future profitability. Notably, the proposed dividend increase signals confidence in sustained cash flow, which is critical for investor sentiment. The mid-single-digit sales growth forecast for 2026 reflects cautious optimism amid mixed regional performances, especially with continued strength in the U.S. market offsetting losses in Asia.