Roche (ROG) Q1 2026 earnings summary

Executive summary

• Group sales grew 6% at constant exchange rates (CER) in Q1 2026, led by Pharma (+7%) and Diagnostics (+3%), with Diagnostics at +5% excluding China due to healthcare pricing reforms and a weaker flu season impacting respiratory sales.

• Strong pipeline progress with multiple pivotal Phase III readouts and regulatory filings, notably in oncology, neurology, immunology, and obesity.

• Key growth drivers included Xolair, Phesgo, Hemlibra, Vabysmo, Ocrevus, and Polivy, while Xofluza was negatively affected by the low flu season.

• Strategic investments in AI and digital transformation, including expanded collaboration with NVIDIA and acquisition of SAGA Diagnostics to enhance oncology capabilities.

• Guidance confirmed for mid-single-digit sales growth, high single-digit core EPS growth, and further dividend increase in Swiss francs.

Financial highlights

• Group sales reached CHF 14.7 billion in Q1 2026 (+6% CER, -5% CHF, +9% USD); Pharma CHF 11.5 billion (+7% CER), Diagnostics CHF 3.3 billion (+3% CER).

• Top five pharmaceutical growth drivers delivered CHF 5.3 billion in sales (+14% CER).

• Currency headwinds led to a -5% decline in Swiss francs, with a CHF -1.6 billion impact; negative currency effects, mainly from USD, JPY, CNY, and EUR, reduced reported growth by 6.7 percentage points.

• Loss of exclusivity expected to impact sales by CHF 1 billion for full year 2026.

• Products with expired patents saw a combined sales decrease of CHF 0.1 billion at CER.

Outlook and guidance

• 2026 guidance confirmed: mid-single-digit group sales growth and high single-digit core EPS growth at CER, with further dividend increase planned in Swiss francs.

• LOE impact of CHF 1 billion expected to be offset by business growth.

• Diagnostics division aims for mid-single-digit growth in 2026 as China pricing reform impact lessens.

• Expect strong growth for key brands and new launches, with up to 19 NMEs potentially launching by 2030.