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Roche Holding AG
(ROP)
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Rating:73Outperform
Price Target:
CHF371.00
▲(4.48% Upside)
Action:Upgraded
Date:07/23/26
CH:ROP scores well mainly on strong financial quality (high margins and solid free cash flow) and a constructive earnings update with maintained guidance, improving profitability, and meaningful pipeline momentum. The score is held back by uneven historical revenue growth and balance-sheet debt levels, while technical indicators and valuation look broadly neutral-to-supportive rather than strongly bullish.
Positive Factors
Strong cash generation
Consistent high operating and free cash flow provides durable funding for R&D, dividends, bolt-on M&A and deleveraging. Strong cash conversion relative to net income supports reinvestment into pipeline and diagnostics installed base without heavy external financing.
Negative Factors
Sizable absolute debt
A large absolute debt stock reduces financial flexibility for aggressive M&A or major buybacks and increases interest rate sensitivity. Although leverage has improved, ongoing gross debt at these levels constrains balance-sheet optionality in adverse scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent high operating and free cash flow provides durable funding for R&D, dividends, bolt-on M&A and deleveraging. Strong cash conversion relative to net income supports reinvestment into pipeline and diagnostics installed base without heavy external financing.
Read all positive factors
Roche Holding AG (ROP) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF281.86B
Dividend Yield2.77%
Average Volume (3M)1.25M
Price to Earnings (P/E)23.0
Beta (1Y)1.28
Revenue Growth-1.06%
EPS Growth30.86%
CountryCH
Employees103,249
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)15.36
Shares Outstanding702,562,700
10 Day Avg. Volume1,308,571
30 Day Avg. Volume1,251,256
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 Target
CHF355.44Price Target Upside0.10% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)20.24
Revenue Forecast (FY)CHF63.23B
Roche Holding AG Business Overview & Revenue Model
Company Description
Roche Holding AG is a prominent global entity primarily active in the pharmaceutical and diagnostics industries. Its extensive operations encompass numerous countries, including key markets such as Switzerland, Germany, the United States, Austria,...
How the Company Makes Money
Roche makes money primarily by selling (1) patented prescription pharmaceuticals and (2) diagnostic instruments, tests, and related services.
1) Pharmaceuticals (Pharma division): Roche generates revenue from the commercial sale of branded, presc...
Roche Holding AG Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum (core operating profit +10%, margin expansion, robust cash flow) combined with substantial pipeline and regulatory momentum (5 FDA priority reviews, 80% Phase III success YTD, multiple product launches/CE marks, and strategic diagnostics M&A). Headwinds were acknowledged and specific: China diagnostics pricing reform, weaker respiratory season, currency translation effects, net debt increase from dividends/timing, competitive pressures (biosimilars) and some impairments. Overall, the positive operational and pipeline developments materially outweigh the challenges, and management maintained confident guidance (mid-single-digit sales growth, high-single-digit core EPS growth) while flagging manageable near-term risks.Positive Updates
Strong Profitability Expansion
Core operating profit increased +10% (CER) and core operating margin expanded by +1.7 percentage points; core EPS grew +9% — demonstrating margin expansion ahead of sales growth.
Negative Updates
China Diagnostics Pricing Reform
Diagnostics sales in China declined -15% (regional APAC -5% overall) due to ongoing health-care pricing reform; excluding China Diagnostics would have grown +6% CER.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability Expansion
Core operating profit increased +10% (CER) and core operating margin expanded by +1.7 percentage points; core EPS grew +9% — demonstrating margin expansion ahead of sales growth.
Read all positive updates
Company Guidance
Roche stuck to its 2026 guidance: mid‑single‑digit sales growth (group H1 at 6%), high‑single‑digit core EPS growth (core EPS +9% in H1) and a further dividend increase in CHF; management reiterated an expected LOE headwind of roughly CHF 600m for 2026. H1 showed core operating profit +10% (core operating margin +1.7pp), pharma +6% and diagnostics +3% (diagnostics +6% ex‑China; China -15%), with a flu‑season impact of >CHF200m (~1%). Cash metrics were strong: operating free cash flow +21% (+2% in CHF), free cash flow +58% (+26% in CHF), while net debt rose CHF 5.9bn (gross debt ~CHF31.8bn). Diagnostics reaffirmed a 2026 ambition to keep margins broadly stable (~14.4% FY25 level) while targeting mid‑single‑digit sales growth and mid‑ to high‑single‑digit growth in 2027; management also flagged currency headwinds (~‑4 to ‑6 ppts on FY sales/OP/EPS) and a core tax rate of 17.5% in H1, expected to be around 20% for the full year, and said other revenue is expected to rise from ~3% to ~5% of sales by the end of the decade.Roche Holding AG Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
67
Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 60.94B | 61.52B | 62.40B | 60.44B | 65.81B | 62.80B |
| Gross Profit | 44.68B | 45.23B | 46.11B | 44.08B | 47.88B | 43.10B |
| EBITDA | 21.05B | 22.66B | 16.62B | 18.41B | 20.80B | 22.19B |
| Net Income | 12.34B | 12.88B | 8.28B | 11.50B | 12.42B | 13.93B |
Balance Sheet | ||||||
| Total Assets | 98.20B | 100.70B | 101.80B | 90.47B | 88.15B | 92.32B |
| Cash, Cash Equivalents and Short-Term Investments | 9.73B | 15.48B | 17.32B | 10.51B | 9.77B | 13.03B |
| Total Debt | 31.80B | 33.19B | 36.35B | 30.78B | 26.54B | 32.55B |
| Total Liabilities | 61.48B | 62.82B | 65.64B | 57.20B | 56.14B | 63.97B |
| Stockholders Equity | 32.69B | 33.80B | 31.77B | 29.32B | 27.99B | 24.49B |
Cash Flow | ||||||
| Free Cash Flow | 14.76B | 14.08B | 15.09B | 11.45B | 13.34B | 16.02B |
| Operating Cash Flow | 18.40B | 17.83B | 20.09B | 16.09B | 17.89B | 20.57B |
| Investing Cash Flow | -8.11B | -8.71B | -11.39B | -10.64B | -3.57B | -6.55B |
| Financing Cash Flow | -12.29B | -10.18B | -6.82B | -4.24B | -15.72B | -12.70B |
Roche Holding AG Technical Analysis
Positive
355.10
Price Trends
332.87
Positive
325.33
Positive
318.87
Positive
Market Momentum
3.89
Negative
67.45
Neutral
78.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ROP, the sentiment is Positive. The current price of 355.1 is above the 20-day moving average (MA) of 341.56, above the 50-day MA of 332.87, and above the 200-day MA of 318.87, indicating a bullish trend. The MACD of 3.89 indicates Negative momentum. The RSI at 67.45 is Neutral, neither overbought nor oversold. The STOCH value of 78.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ROP.
Roche Holding AG Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | CHF231.75B | 23.78 | ― | 2.92% | -5.88% | -11.57% | |
73 Outperform | CHF281.86B | 23.02 | 37.12% | 2.76% | -1.06% | 30.86% | |
66 Neutral | CHF38.31B | -365.06 | ― | 0.91% | -10.77% | -114.77% | |
66 Neutral | CHF28.93B | 38.22 | 10.09% | 1.26% | 0.80% | 28043.55% | |
63 Neutral | CHF41.27B | 53.19 | ― | 0.20% | 15.78% | 111.61% | |
62 Neutral | CHF27.67B | 41.53 | 3.69% | 0.50% | -3.08% | -33.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
CH:ROP
Roche Holding AG
353.60
106.17
42.91%
CH:NOVN
Novartis AG
126.60
34.81
37.93%
CH:LONN
Lonza Group Ltd
562.20
2.47
0.44%
CH:ALC
Alcon
55.38
-15.28
-21.62%
CH:SDZ
Sandoz Group Ltd
65.76
20.10
44.01%
CH:GALD
Galderma Group AG
175.75
47.83
37.39%
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.