Roche Holding AGXSWX:ROP +2.09%79 Gross Margin % is 72.58% as of Dec. 2025, which is 4% above its 10-year median of 70.08. GuruFocus rates XSWX:ROP with a GF Score™ of 79/100 and a GF Value™ of CHF264.69 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Roche Holding AG ranks better than 86.67% on this metric.
The historical rank and industry rank for Roche Holding AG's Gross Margin % or its related term are showing as below:
XSWX:ROP'
s Gross Margin % Range Over the Past 10 Years
Min: 65.89 Med: 70.08 Max: 73.9
Current: 73.73
During the past 13 years, the highestGross Margin % of Roche Holding AG was 73.90%. The lowest was 65.89%. And the median was 70.08%.
XSWX:ROP's Gross Margin % is ranked better than 86.67% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs XSWX:ROP: 73.73
Roche Holding AG had a gross margin of 72.58% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Roche Holding AG was 1.00% per year.
Roche Holding AG (XSWX:ROP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Roche Holding AG had a gross margin of 72.58% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Roche Holding AG Gross Margin % Related Terms
Roche Holding AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Roche Holding AG's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:ROP vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Roche Holding AG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Roche Holding AG Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Roche Holding AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Roche Holding AG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Roche Holding AG (XSWX:ROP) has a Gross Margin % of 72.58% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Roche Holding AG and its competitors. This is near median its historical median of 70.08. Over the past decade, Roche Holding AG's Gross Margin % has ranged from 65.89 to 73.90. According to the industry distribution chart, Roche Holding AG ranks #125 out of 938 companies in the Drug Manufacturers industry, placing it in the top 13.3%.
Is Roche Holding AG's Gross Margin % too high?
Roche Holding AG's current Gross Margin % of 72.58% is near median its 10-year median of 70.08. Over the past 10 years, this metric has ranged from a low of 65.89 to a high of 73.90. The Drug Manufacturers industry median Gross Margin % is 48.44. Roche Holding AG's value of 72.58% is 49.8% above this industry median. Based on the distribution chart, Roche Holding AG ranks #125 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Roche Holding AG has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roche Holding AG's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Roche Holding AG ranks #125 out of 938 companies for Gross Margin %. This places Roche Holding AG in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Roche Holding AG's value of 72.58% is 49.8% above this benchmark. Historically, Roche Holding AG's own Gross Margin % has ranged from 65.89 to 73.90 over the past decade. While the company's 10-year median is 70.08 vs. the industry median of 48.44, Roche Holding AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Roche Holding AG's current Gross Margin % of 72.58% is 49.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Roche Holding AG and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roche Holding AG's current Gross Margin % is 72.58%, which is near median its own 10-year median of 70.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roche Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Roche Holding AG (XSWX:ROP) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF264.69, compared to a current price of CHF332.00 — trading 25.4% above its estimated fair value. The current Gross Margin % is 72.58%, which is near median its 10-year median of 70.08 and 49.8% above the Drug Manufacturers industry median of 48.44. Roche Holding AG's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Roche Holding AG (XSWX:ROP), the current Gross Margin % is 72.58% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Roche Holding AG (XSWX:ROP) Overvalued in 2026?
Based on GuruFocus' analysis, Roche Holding AG stock appears to be overvalued.
The current stock price of CHF332.00 is trading 25.4% above its estimated GF Value™ of CHF264.69.
GuruFocus considers Roche Holding AG to be Modestly Overvalued.
Key valuation signals for XSWX:ROP:
Gross Margin %: 72.58% (near median its 10-year median of 70.08)
GF Value™: CHF264.69 vs. price of CHF332.00 (25.4% above fair value)
Industry Position: 49.8% above the Drug Manufacturers median (#125 of 938)
No single metric tells the full story. See the XSWX:ROP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roche is a Swiss biopharmaceutical and diagnostic company. The firm's bestselling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 40% of pharmaceutical sales, and centralized and point-of-care diagnostics for two-thirds of diagnostic-related sales.
79GF Score
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