GSK (GSK) investor relations material

Executive summary

• Q2 2026 sales grew 5% at constant exchange rates to £8.4bn, with core operating profit up 7% to £2.8bn and core EPS up 9% to 50.5p, driven by Specialty Medicines (+14%) and Vaccines (+8%).

• Specialty Medicines growth was led by Nucala, Arexvy, and Cabenuva, while General Medicines declined 9%.

• The Accelerate Growth program targets £1.9bn in annual cost savings by 2029, reallocating capital to late-stage R&D and margin protection.

• Acquisitions of Nuvalent, RAPT Therapeutics, and 35Pharma completed, expanding the oncology and specialty pipeline.

• Total operating profit and EPS declined due to £1.3bn impairment (mainly camlipixant) and higher contingent consideration liabilities.

Financial highlights

• Q2 turnover was £8,409m (+5% CER); core operating profit £2,800m (+7% CER); core EPS 50.5p (+9% CER).

• Gross margin improved by 250bps year-over-year to 77.4%, with operating margin at 33.3%.

• Free cash flow for H1 2026 was £2.8bn, with Q2 free cash flow at £2.0bn; cash generated from operations was £2.9bn.

• Dividend per share set at 17p for Q2; full-year dividend guidance at 70p.

• Net debt at 30 June 2026 was £15.1bn, up from £14.5bn at year-end 2025, reflecting acquisitions.

Outlook and guidance

• 2026 guidance: turnover growth 3–5% (upper half of range), core operating profit growth 7–9% (upper half), core EPS growth 7–9% (lower half).

• Specialty Medicines expected to grow low double digits, Vaccines stable to low single digits, General Medicines to decline mid- to low single digits.

• Long-term sales outlook reaffirmed at over £40bn by 2031, with more than 50% from Specialty Medicines.

• Margin guidance through dolutegravir LOE (2028-2030) now stable to improving, supported by Accelerate Growth savings.

• Dividend of 17p/share declared for Q2; 70p/share expected for full year.