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(Sharecast News) - Roche reported a solid rise in earnings in 2025 on Thursday, but struck a cautious note on the outlook, as currency headwinds and softer-than-expected sales of a key eye drug tempered an otherwise improving performance driven by newer medicines and recent clinical successes.
Adjusted operating profit rose 5% to CHF 21.8bn, slightly below market expectations, while group revenues increased 2% to CHF 61.5bn, broadly in line with forecasts.
The strength of the Swiss franc, particularly against the US dollar, weighed heavily on reported growth, offsetting robust demand for flagship drugs including multiple sclerosis treatment Ocrevus and haemophilia drug Hemlibra.
Net profit rose sharply, up 58% to CNF 13.8bn, reflecting efficiency gains and a lower comparison base.
Pharmaceuticals sales rose 9% at constant exchange rates to CNF 47.7bn, led by Ocrevus, Hemlibra, Phesgo and allergy drug Xolair, while sales of products facing patent expiry continued to decline.
Growth in eye drug Vabysmo was more muted, however, with fourth-quarter sales rising 7% to CNF 1.04bn at constant currencies, below analyst expectations and cited by investors as a key disappointment amid a slowdown in US demand.
The diagnostics division delivered modest progress, with sales up 2% at constant exchange rates to CNF 13.8bn, as demand for pathology and molecular testing offset pressure from pricing reforms in China.
Reported diagnostics sales declined in Swiss francs due to adverse currency movements.
Roche said it expected group sales to grow in the mid-single-digit percentage range in 2026 at constant exchange rates, with core earnings per share rising in the high single digits.
The board proposed a dividend of CNF 9.80 per share, which would mark the company's 39th consecutive annual dividend increase if approved.
Chief executive Thomas Schinecker said the company was well-positioned for growth, pointing to recent late-stage trial wins in multiple sclerosis and breast cancer that had helped lift Roche shares sharply since November.
The group said it was also pushing into the fast-growing obesity market, where mid-stage data showed its leading weekly injection cutting body weight by up to 22.5%.
Roche acknowledged that currency effects, particularly the weak dollar, would remain a drag, given the company's large US revenue base and Swiss cost structure.
At 1313 CET (1213 GMT), shares in Roche Holding were up 0.27% in Zurich, at CHF 339.20.
Reporting by Josh White for Sharecast.com.