GSK (GSK) Q4 2025 earnings summary

Executive summary

• Full-year sales rose 7% to £32.7bn, led by 17% growth in Specialty Medicines and strong HIV, Oncology, and Respiratory performance across all regions.

• Core operating profit increased 11% to £9.8bn, core EPS up 12% to 172.0p, and cash generation reached £8.9bn, supporting a dividend upgrade to 66p and a £1.4bn share buyback.

• Five FDA approvals and seven new pivotal trial starts marked robust R&D output, with pipeline expansion through the RAPT Therapeutics acquisition.

• Strategic focus for 2026 includes maximizing new product launches, accelerating late-stage assets, and executing business development.

• 2026 guidance targets 3-5% sales growth, 7-9% growth in core operating profit and EPS, and a dividend increase to 70p.

Financial highlights

• Sales: £32.7bn, up 7% year-over-year; Specialty up 17%, HIV up 11%, Vaccines up 8%, General Medicines stable.

• Core operating profit up 11% to £9.8bn; core EPS up 12% to 172.0p.

• Free cash flow £4.0bn (£5.2bn excluding Zantac), with £1.2bn Zantac payments in 2025.

• Operating margin increased 110bps to 29.9%; gross margin at 74.9%.

• Dividend raised to 66p; £1.4bn share buyback; £4bn returned to shareholders via dividends and buybacks.

Outlook and guidance

• 2026 guidance: sales growth 3-5%, core operating profit and EPS up 7-9%, dividend to rise 6% to 70p.

• Specialty expected to grow low double digits; HIV mid- to high single digits; Vaccines and General Medicines stable or slight decline.

• Operating profit growth weighted to H2 due to Q4 2025 charges and RSV settlement annualization.

• Currency headwind could impact sales (-3%) and operating profit (-6%) if rates persist; a 10 cent USD move impacts core profit by ~8%.

• On track for 8% sales and 13% operating profit CAGR (2021-2026); cash generation to exceed £10bn in 2026.