Swiss healthcare group Roche said first-quarter revenue was 14.7 billion Swiss francs, a drop of 5% on a reported basis but an increase of 6% when adjusted for currency movements. The reported top-line matched average analyst expectations of roughly 14.7 billion francs compiled by Visible Alpha.
Management confirmed full-year targets: adjusted earnings per share are expected to grow in a "high-single-digit" percentage range and group sales should expand in a "mid-single-digit" percentage range. Those targets were reiterated alongside the quarterly results as the company parsed growth by division and the effects of foreign exchange.
Within pharmaceuticals, Roche identified its multiple sclerosis treatment Ocrevus and its once-monthly haemophilia therapy Hemlibra as leading contributors on a constant-currency basis, with Ocrevus up 6% and Hemlibra rising 13% in the quarter. Sales of Xolair, indicated for asthma and approved in the United States for food allergies in 2024, climbed 26% over the period.
Despite these product-level gains, reported results were held back by currency effects. The Basel-based group noted that a weak U.S. dollar has reduced the translated value of overseas sales. The dollar had fallen about 12% against the Swiss franc in the prior year and was around 1% lower year to date, a decline the company said followed the start of the Iran War. The company also provided the exchange reference rate of $1 = 0.7854 Swiss francs.
Roche's diagnostics segment experienced a 7% decline in sales on a reported basis, but rose 3% on a constant-currencies basis. Management said stronger demand for core lab and pathology solutions helped offset the adverse impact from pricing changes in China for medical devices and diagnostics products.
On a conference call, Chief Executive Thomas Schinecker described the changing dynamics in China as easing. "I’m already very happy given the fact that in the first quarter, we only had a 2% effect on the sales," he said. "You can really see the trend going the right way." Roche framed that moderation as a reason to expect improvement in the second half of the year.
The pharmaceutical division's sales fell 4% on a reported basis for the quarter but increased 7% when measured in constant currencies. The company highlighted that stronger volumes and product momentum within its pharma portfolio contrasted with the drag from foreign exchange translation at the group level.
Separately, the published release included an investor-focused note about equity assessment tools that evaluate Roche among other companies across metrics such as fundamentals, momentum and valuation. That commentary referenced the use of AI-based strategies to screen stocks and cited prior examples of companies that had delivered strong returns under certain strategies. The note presented this information as part of broader investor tools and did not change the company's reported financial results.
Context and market implications
The quarter demonstrates how robust product demand can be masked in headline figures by currency movements and regional pricing policy shifts. Pharmaceuticals were the principal growth engine on a currency-adjusted basis, while diagnostics faced a marked but improving headwind from pricing reforms in China. Management's guidance for the full year remains intact despite those cross-currents.