Roche Holding Ltd (CH:RO)
:RO
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Roche Holding Ltd
(RO)
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Rating:78Outperform
Price Target:
CHF353.00
▲(5.31% Upside)
Action:ReiteratedDate:01/31/26
The score is driven primarily by strong financial quality (high profitability and solid free cash flow) and supportive technical momentum (price above key moving averages with positive MACD). Earnings call outlook is constructive with growth and margin expansion guidance, though tempered by FX, China diagnostics headwinds, LOE pressure, and some safety/regulatory uncertainty. Valuation is reasonable but not cheap at a 22.2 P/E, with a supportive 2.7% dividend yield.
Positive Factors
Free Cash Flow & Profitability
Consistent high operating cash flow and robust free cash flow provide durable funding for R&D, dividend increases and capital investment. Strong gross and EBIT margins support reinvestment capacity and financial resilience, enabling sustained product development and shareholder returns.
Negative Factors
China Diagnostics Pricing Reforms
Sustained Chinese healthcare pricing reforms are a structural headwind for diagnostics revenue and margins in a major market. Prolonged lower pricing and reimbursement can permanently reduce consumables ASPs and slow instrument placement economics, requiring margin and product mix offsets elsewhere.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow & Profitability
Consistent high operating cash flow and robust free cash flow provide durable funding for R&D, dividend increases and capital investment. Strong gross and EBIT margins support reinvestment capacity and financial resilience, enabling sustained product development and shareholder returns.
Read all positive factors
Roche Holding Ltd (RO) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF248.67B
Dividend Yield2.88%
Average Volume (3M)28.08K
Price to Earnings (P/E)20.3
Beta (1Y)1.33
Revenue Growth4.77%
EPS Growth-11.07%
CountryCH
Employees103,249
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)8.38
Shares Outstanding106,691,000
10 Day Avg. Volume29,793
30 Day Avg. Volume28,076
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)7.73
Price to Sales (P/S)4.25
P/FCF Ratio18.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)20.2
Revenue Forecast (FY)CHF62.82B
Roche Holding Ltd Business Overview & Revenue Model
Company Description
Roche Holding AG engages in the pharmaceuticals and diagnostics businesses in Switzerland, Germany, the United States, Austria, Netherlands, the United Kingdom, France, Belgium, and internationally. The company offers pharmaceutical products for t...
How the Company Makes Money
Roche makes money mainly by selling products and services through its Pharmaceuticals and Diagnostics divisions.
In Pharmaceuticals, Roche generates revenue from sales of patented prescription medicines to hospitals, clinics, wholesalers, pharmac...
Roche Holding Ltd Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and pipeline story: solid top‑line growth (7%), robust core operating profit expansion (+13%), multiple high‑impact regulatory approvals and a record number of NMEs advancing to Phase III. Management emphasized disciplined capital allocation, sizeable U.S. investment commitments and a busy 2026 newsflow. Key near‑term headwinds — chiefly the China diagnostics pricing reforms, higher taxes, working capital drag on cash flow, currency translation effects, LOE pressures and some safety/regulatory scrutiny around the BTK class — were acknowledged and framed as manageable. On balance the positives (growth, margin expansion, major pipeline wins and strategic launches) outweigh the negatives, while management provided a constructive 2026 outlook (mid‑single‑digit sales, high single‑digit core EPS).Positive Updates
Group Sales Growth
Group sales grew 7% in 2025 (constant exchange rates). Pharma sales grew 9% to CHF 47.7 billion; Diagnostics reported +2% overall but +7% excluding China healthcare pricing reforms.
Negative Updates
China Healthcare Pricing Reforms Impact Diagnostics
Diagnostics sales were materially impacted by Chinese healthcare pricing reforms: sales in China declined ~24% (impact ~CHF 579 million). Diagnostics grew only 2% overall in 2025 but would have been +7% excluding China.
Read all updates
Q4-2025 Updates
Positive
Negative
Group Sales Growth
Group sales grew 7% in 2025 (constant exchange rates). Pharma sales grew 9% to CHF 47.7 billion; Diagnostics reported +2% overall but +7% excluding China healthcare pricing reforms.
Read all positive updates
Company Guidance
Roche guided 2026 to mid‑single‑digit group sales growth and high single‑digit core EPS growth (core EPS reported at CHF 19.46 in 2025, adjusted starting base CHF 19.83), while expecting to further increase the dividend in Swiss francs; Diagnostics is guided to mid‑single‑digit growth in 2026 (recovering to mid‑ to high‑single digits by 2027 as China headwinds abate) and the firm expects an LOE impact of roughly CHF 1.0 billion in 2026 (CHF 1–1.5bn on an ongoing basis). Management flagged an effective tax rate around 20% for 2026, plans to expand margins in 2026, anticipates improved cash conversion after CHF 16.2bn operating free cash flow in 2025, and warned of currency headwinds (2025 FX cost ~‑5 percentage points on sales; holding end‑2025 rates would imply roughly ‑4ppt on 2026 sales and ‑6ppt on core operating profit/EPS).Roche Holding Ltd Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
70
Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.52B | 62.40B | 60.44B | 65.81B | 62.80B |
| Gross Profit | 45.23B | 46.11B | 44.08B | 47.88B | 43.10B |
| EBITDA | 22.66B | 16.62B | 18.41B | 20.80B | 22.19B |
| Net Income | 12.88B | 8.28B | 11.50B | 12.42B | 13.93B |
Balance Sheet | |||||
| Total Assets | 100.70B | 101.80B | 90.47B | 88.15B | 92.32B |
| Cash, Cash Equivalents and Short-Term Investments | 15.48B | 17.32B | 10.51B | 9.77B | 13.03B |
| Total Debt | 33.19B | 36.35B | 30.78B | 26.54B | 32.55B |
| Total Liabilities | 62.82B | 65.64B | 57.20B | 56.14B | 63.97B |
| Stockholders Equity | 33.80B | 31.77B | 29.32B | 27.99B | 24.49B |
Cash Flow | |||||
| Free Cash Flow | 14.08B | 15.09B | 11.45B | 13.34B | 16.02B |
| Operating Cash Flow | 17.83B | 20.09B | 16.09B | 17.89B | 20.57B |
| Investing Cash Flow | -8.71B | -11.39B | -10.64B | -3.57B | -6.55B |
| Financing Cash Flow | -10.18B | -6.82B | -4.24B | -15.72B | -12.70B |
Roche Holding Ltd Technical Analysis
Negative
335.20
Price Trends
343.09
Negative
330.97
Negative
300.22
Positive
Market Momentum
-5.26
Negative
41.15
Neutral
72.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:RO, the sentiment is Negative. The current price of 335.2 is above the 20-day moving average (MA) of 324.54, below the 50-day MA of 343.09, and above the 200-day MA of 300.22, indicating a neutral trend. The MACD of -5.26 indicates Negative momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:RO.
Roche Holding Ltd Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | CHF248.67B | 20.28 | ― | 2.88% | 4.77% | -11.07% | |
78 Outperform | CHF218.71B | 18.30 | ― | 3.18% | 7.62% | -18.33% | |
72 Outperform | CHF29.64B | 38.35 | 4.44% | 0.44% | 0.39% | -12.46% | |
66 Neutral | CHF27.80B | 32.85 | 2.64% | 1.02% | ― | ― | |
63 Neutral | CHF35.90B | 28.64 | ― | 0.09% | 6.22% | ― | |
56 Neutral | CHF34.28B | 39.77 | ― | 0.75% | 5.93% | 29.83% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CH:RO
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.