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%, and a full-year dividend of 70p.

• Focus remains on high-potential assets, disciplined capital allocation, and late-stage pipeline development.

Financial highlights

• Specialty Medicines sales grew 14% to £3.2 billion, with Shingrix up 20% to over £1 billion, and HIV portfolio up 10% to £1.8 billion.

• Core operating margin improved to 34.7% (+1.8ppts), and gross margin rose by 110bps to 77.7%.

• Free cash flow was £815 million, up from Q1 2025, and benefited from a $250 million special dividend related to ViiV shareholding changes.

• Dividend per share set at 17p for the quarter.

• Net debt increased to £15.6 billion, mainly due to acquisitions, dividends, and share buybacks.

Outlook and guidance

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

• 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 and General Medicines performance expected to be weighted toward the second half of the year.

• 2031 sales outlook remains above £40 billion.

• Guidance includes expected impacts from US government agreements on pharmaceutical tariffs.