GSK (GSK) investor relations material

Executive summary

• Q3 turnover rose 5% CER to £8.887bn; core operating profit increased 5% to £3.076bn and core EPS rose 1% to 54.6p, led by Specialty Medicines.

• FY26 guidance was reaffirmed, with sales and core operating profit in the upper half of their ranges and core EPS in the lower half; priorities include launches, late-stage R&D and resource reallocation.

Financial highlights

• Q3 total operating profit fell 16% CER to £2.127bn and total EPS fell 21% to 38.5p, mainly reflecting £328m of Accelerate Growth charges and lower other net operating income.

• Core R&D costs rose 22% CER to £1.874bn; SG&A increased 1%, with higher R&D investment broadly offset by productivity in cost of sales and SG&A.

• YTD cash generated from operations was £7.4bn versus £6.3bn; free cash flow reached £4.9bn, up £1.8bn year on year.

• Q3 cash generated from operations was £3.122bn; free cash inflow was £2.078bn versus £1.246bn in Q3 2025.

• Q3 core EPS growth was narrowed by higher interest costs following the Nuvalent acquisition and a higher quarterly tax rate.

Outlook and guidance

• FY26 guidance: turnover growth of 3%–5%, core operating profit and core EPS growth of 7%–9%; turnover and operating profit are in the upper half of ranges, EPS in the lower half.

• FY26 product outlook: Specialty Medicines low-double-digit growth, Vaccines broadly stable to low-single-digit growth, and General Medicines mid-single- to low-single-digit decline.

• Core operating margin remains on track to exceed 31% at constant rates; R&D is expected to grow significantly faster than sales, with SG&A broadly stable.

• Full-year royalties are expected at ~£900m; interest expense is forecast at £700m–£750m, including ~£160m related to Nuvalent, and the core tax rate at ~17.5%.

• Long-term outlook targets sales above £40bn by 2031, Specialty Medicines above 50% of sales, and stable-to-improving operating margin through the 2028–30 dolutegravir loss-of-exclusivity period.