GSK (GSK) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 5% sales growth to £7.6 billion, with core operating profit up 10% to £2.7 billion and core EPS up 9% to 46.5p, driven by Specialty Medicines, Shingrix, HIV long-acting injectables, and Jemperli.

• Cash generated from operations reached £1.4 billion, supporting investment and shareholder returns, including a 17p Q1 dividend and ongoing share buybacks.

• Pipeline acceleration continues, with multiple pivotal trial starts and readouts expected in 2026.

• 2026 guidance confirmed: sales growth of 3–5%, core operating profit and EPS growth of 7–9%.

• Growth was led by Specialty Medicines, particularly Shingrix, HIV, and Oncology.

Financial highlights

• Specialty Medicines sales grew 14% to £3.2 billion, with Shingrix up 20% to over £1 billion, Jemperli up 40%, and Nucala up 12%.

• HIV portfolio delivered £1.8 billion (+10%), led by long-acting regimens; Oncology up 28%; Respiratory, Immunology & Inflammation up 16%.

• General Medicines declined 6–9% due to lower sales in the established portfolio; Trelegy remained stable.

• Gross margin improved by 110bps to 77.7%; core operating margin rose to 34.7% (+1.8ppts); total operating margin at 30.1%.

• Free cash flow was £815 million, benefiting from a $250 million special dividend from ViiV shareholding changes.

Outlook and guidance

• 2026 guidance reaffirmed: turnover growth of 3–5%, core operating profit and EPS growth of 7–9% at CER, and a full-year dividend of 70p.

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

• Operating profit growth expected to be weighted to the second half due to phasing of restructuring charges and savings.

• Vaccines growth in Q1 benefited from U.S. Shingrix stocking; tougher comparators expected in Europe and Japan for the rest of the year.

• 2031 sales outlook remains above £40 billion.