Roche’s diagnostics business continues to be buffeted by China headwinds, but the Swiss major believes it has enough underlying sales strength to weather the storm.
Roche’s diagnostics division grew by just 1% year over year for the first nine months of 2025, bringing in 10.3 billion Swiss francs ($12.91 billion).
In its financial report for the quarter, Roche said “demand for pathology solutions and molecular diagnostics more than offset the impact of healthcare pricing reforms in China.”
Those reforms have seen China change how medical devices and certain diagnostic services are paid for in response to what the country saw as high prices.
Roche has previously stressed China’s importance to its long-term business. Diagnostic sales in the Asia-Pacific region were down 15% in the first three quarters of the year, while sales in all other geographic regions were up.
Within diagnostics, pathology lab services was a standout division, with its sales up 13% at constant exchange rates in the first nine months of the year. Roche's molecular lab group grew sales by 4% as well.
On the flip side, Roche's near patient care and core lab units reported sales declines of 4% and 1% for the nine-month period, respectively.
In presenting the results, Roche CEO Thomas Schinecker looked on the bright side. During the company’s call with investors Thursday, he said that excluding China, the "rest [of] diagnostics was growing 7%, which was absolutely in line with past performance of diagnostics.”
Matt Sause, CEO of Roche Diagnostics, added that his division’s year-to-date sales in China fell by 27%.
“This impact is expected to continue over the remainder of 2025,” Sause said, reiterating the division’s goal to grow sales by a low-single-digit percentage for the full year.
And while the diagnostics group typically aims to grow sales at a mid-to-high single-digit rate annually, according to Sause, the testing unit is setting its 2026 growth ambitions at “mid-single digits,” he said, attributing that muted outlook to “diminished but continuing headwinds in China for 2026.”
Overall, Roche saw sales growth of 7% across all its businesses for the first nine months of the year, with its pharmaceuticals division the biggest growth driver, up 9%.