Roche confirms 2026 annual targets despite strong franc and China headwinds

Pharma division posts mixed results

The larger Pharma division contributed 23.6 billion francs to group revenue, which is 1 percent below the prior-year figure. The drugs Hemlibra, Tecentriq, and Perjeta sold better than analysts had expected. The eye treatment Vabysmo, by contrast, once again missed expectations, according to experts.

The Diagnostics division continued to suffer from a pricing reform in China and recorded a revenue decline of 3 percent to 6.7 billion francs. Group CEO Thomas Schinecker described the operating performance as solid.

Diagnostics struggles with price pressure in China

Core operating profit, adjusted for special items and used by analysts as a benchmark, fell by 1 percent to 11.9 billion francs. On a currency-adjusted basis, however, core operating profit rose by 10 percent. Core earnings per share declined by 2 percent to 10.85 francs, with a currency-adjusted increase of 9 percent.

With the reported figures, Roche remains within the range of analyst estimates. Bernstein praised the resulting margin as "impressive." ZKB and UBS described revenue performance in the second quarter as solid. ZKB called cost discipline "encouraging."

Analysts praise cost discipline

Core earnings came in slightly above the consensus, according to analysts, which was attributed primarily to lower costs, especially in research and development. ZKB noted, however, that the hoped-for acceleration of growth in the United States failed to materialize.

For the further course of business, the management around Group CEO Thomas Schinecker confirmed the previous guidance. Roche expects currency-adjusted revenue growth in the mid-single-digit percentage range for full-year 2026 and growth in core earnings per share in the high single-digit percentage range. The group also continues to aim to increase the dividend in Swiss francs.

Shares rise, outlook confirmed

On the Swiss stock exchange SIX, Roche shares gained as much as 2.96 percent on Thursday to 348 francs and were still up around 3 percent by midday. The half-year results were thus received positively by investors.

Overall, the 2026 half-year results were within expectations: the Pharma division performed slightly above consensus estimates, while the Diagnostics division was within forecasts. The results confirm the company's course of resilience in a difficult currency environment.