GSK (GSK) Q4 2025 earnings summary

Executive summary

• Sales grew 7% to £32.7 billion in 2025, driven by 17% growth in Specialty Medicines and strong HIV, Oncology, and Respiratory performance across all regions.

• Core operating profit increased 11% to £9.8 billion, core EPS rose 12% to 172.0p, and cash generation was robust at £8.9 billion.

• Dividend increased by 2p to 66p, with a further 6% rise to 70p guided for 2026; £1.4 billion share buyback completed.

• Five FDA approvals and seven new pivotal trial starts highlighted strong R&D output.

• Strategic focus for 2026 includes maximizing new launches, accelerating late-stage assets, and business development.

Financial highlights

• Specialty Medicines sales up 17% to £13.5 billion, HIV up 11% to £7.7 billion, and overall sales up 7% year-over-year.

• Core operating profit up 11%, core EPS up 12%, and free cash flow at £4 billion (£5.2 billion excluding Zantac payments).

• Operating margin increased 110 bps to 29.9%, with gross margin at 74.9% and up 40 bps due to portfolio shift.

• Shareholder distributions totaled £4 billion, including dividends and share buybacks.

• Total operating profit more than doubled to £7.9 billion, with total EPS up over 100% to 141.1p, reflecting the absence of prior year one-off charges.

Outlook and guidance

• 2026 guidance: sales growth of 3%-5%, core operating profit and EPS growth of 7%-9%, and dividend guided to 70p, a 6% increase.

• Specialty expected to grow low double digits, HIV mid- to high single digits, vaccines and Gen Med stable to low single-digit decline.

• Gross margin to benefit from product mix and efficiencies; R&D to grow ahead of sales; SG&A to grow low single digit.

• Operating profit growth weighted to H2 due to Q4 2025 charges and RSV settlement annualization.

• Currency headwind could impact sales by -3% and operating profit by -6%; a 10 cent USD move impacts core operating profit by ~8%.