GSK (GSK) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong momentum with group sales up 6% CER to £7,986m, core operating profit up 12% CER, and core EPS up 15% CER to 46.5p, driven by Specialty Medicines and Vaccines, with three FDA approvals and robust pipeline progress.

• Specialty Medicines grew 15% CER, Vaccines up 9% CER, and HIV portfolio up 12% CER, with strong demand across key markets and double-digit growth in Oncology, RI&I, and HIV.

• R&D progress included three FDA approvals YTD, expansion of the pipeline, and significant late-stage trial initiations, with five major new product approvals expected in 2025.

• Cash generation remained strong, with £3.7bn generated from operations YTD and free cash flow of £1.8bn in H1, supporting investments and shareholder returns, including over £800m in share buybacks and a 16p dividend per share.

• Guidance for 2025 raised to the top end for sales, operating profit, and DPS, with expectations to deliver >£40bn sales by 2031.

Financial highlights

• Q2 2025 sales: £7,986m, up 6% CER; Specialty Medicines up 15% CER, Vaccines up 9% CER, HIV up 12% CER.

• Core operating profit up 12% CER to £2,631m; core EPS up 15% CER to 46.5p.

• Operating margin improved by 180bps to 32.9% CER, driven by SG&A reduction and increased royalties.

• Free cash flow for H1 2025 was £1.8bn, up £1.3bn YoY; cash generated from operations £3.7bn YTD.

• Dividend per share was 16p; £822m spent on share buybacks in H1 2025.

Outlook and guidance

• 2025 guidance raised: turnover expected to increase towards the top end of 3–5% CER; core operating profit and EPS both towards the top end of 6–8% CER.

• Specialty Medicines turnover expected to grow at low teens percentage; HIV mid-to-high single digit %, Vaccines stable to low single-digit decline.

• Gross margin expected to benefit from product mix, with R&D investment to grow ahead of sales.

• Net interest expense now guided lower at £550–600m.

• Confident in medium- and long-term outlooks to 2026 and 2031, targeting >£40bn sales by 2031.