GSK PLC Earnings - Q4 2025 Analysis & Highlights
GSK PLC's Q4 2025 earnings call highlighted strong financial results with significant growth in sales and core operating profit, driven by Specialty Medicines and Vaccines. The company provided 2026 guidance for continued profitable growth, emphasizing pipeline acceleration, operational delivery, and strategic business development. HIV and Respiratory portfolios were key discussion points, with a focus on long-acting treatments and market share gains.
Key Financial Results
Sales were up 7% to more than £32 billion in 2025.
Core operating profit grew 11%.
EPS was up 12%.
Cash generation was strong at £8.9 billion.
The operating margin increased 110 basis points in 2025, bringing total accretion at CER to 470 bps over the last four years.
Gross margin continued to benefit from the portfolio transition towards Specialty, growing 40 basis points.
R&D growth of 11% reflects accelerated investment across multiple key Specialty assets.
Free cash flow increased to £4 billion, or more than £5 billion excluding Zantac payments.
Business Segment Results
Specialty Medicines sales were up 17%.
Vaccines also contributed to growth.
Respiratory, Immunology & Inflammation full-year sales were up 18%, driven by strong Benlysta and Nucala performance.
Benlysta grew 22%.
Nucala grew 15% and delivered £2 billion for the year, marking its 10th consecutive year of double-digit growth.
Oncology sales were up 43%.
Jemperli sales were up 89%.
Ojjaara grew 60%.
Zejula sales decreased due to FDA labeling restrictions.
HIV sales growth was 11%, powered by accelerated patient demand for long-acting injectables and Dovato.
Cabenuva grew 42% in 2025.
Apretude grew 62% in 2025.
Vaccines sales were £9.2 billion in the year, up 2%, driven by European and international region sales of Shingrix and Bexsero.
Shingrix sales were £3.6 billion, up 8%.
Meningitis sales were up 12%, with Bexsero up 16%.
Arexvy sales were up 2% for the year.
GenMed sales were slightly down for the year.
Trelegy continues to be the top-selling brand for asthma and COPD globally.
Capital Allocation
Cash generation of £8.9 billion supported future investment and returns to shareholders.
Dividend upgrade of £0.02 to £0.66 was declared.
£4.5 billion was deployed in CapEx and BD.
Shareholder distributions totaled €4 billion through the dividend and share buyback.
93 million shares were repurchased at an average price of £14.73.
The remaining £0.6 billion of the share buyback will be completed in half one.
Industry Trends and Dynamics
COPD is a growing area of significant unmet need, affecting 300 million individuals globally and costing the US healthcare system around $7 billion per year.
Chronic hepatitis B affects more than 250 million people worldwide, causing over 1 million deaths each year.
Chronic hepatitis B accounts for around 56% of liver cancer cases.
In the US, severe food allergies impact over 17 million patients with an estimated $33 billion cost of economic burden.
Competitive Landscape
Nucala has achieved 10 consecutive years of double-digit growth.
Jemperli has a differentiated profile in endometrial cancer.
Ojjaara is included as category 1 for patients with anemia by NCCN.
Exdensur is the world's first and only six-monthly biologic to treat patients with severe eosinophilic asthma.
Blenrep is an off-the-shelf BCMA agent for multiple myeloma available in the community setting where 70% of patients are treated.
ViiV Healthcare has the only commercially established long-acting HIV treatment regimen backed by over four years of real-world data.
Apretude grew 62% in 2025, withstanding any impact from a competitor launch.
GSK retains MenB market leadership in the US with 74% market share.
Trelegy continues to be the top-selling brand for asthma and COPD globally.
Velzatinib has the potential to replace current standard of care in GIST.
Growth Opportunities and Strategies
Driving top-line growth by maximizing launched products like Blenrep and Exdensur.
Accelerating key assets in the late-stage portfolio like B7-H3, B7-H4, and velzatinib in oncology, and efi in MASH.
Accelerating assets in the earlier portfolio like the ultra-long-acting TSLP for respiratory diseases and regimen selection for the six-monthly treatment for HIV.
Continuing to execute business development where there is a clear pathway to value creation, such as the addition of ozureprubart for food allergy.
Simplifying operations with greater pace, accountability, and focus.
Matching the best people and resources to the best opportunities to create value.
Increased focus on leveraging practical use of AI and technology.
Q6M HIV treatment is considered the most significant commercial opportunity.
VH184, a potential first-in-class, third-generation INSTI, has IP protection through to at least 2040.
Ozureprubart, a potential best-in-class long-acting anti-IgE monoclonal for food allergy, is currently in Phase II.
Blenrep is focusing on the community setting for its relaunch, with 50% of current usage coming from the community.
Exdensur is targeting bio naïve patients in severe asthma.
Financial Guidance and Outlook
2026 sales growth is expected to be 3% to 5%.
Core operating profit and core EPS are both expected to grow at 7% to 9%.
A dividend of £0.70 is expected, representing a 6% increase.
Specialty is expected to lead product area growth at a low-double-digit percentage.
HIV is expected to grow mid- to high-single-digit.
Vaccines and GenMed are both expected to be a low-single-digit decline to stable.
Sales growth is expected to be evenly phased through the year.
Gross margin is expected to continue to benefit from supply chain efficiencies and the portfolio transition towards Specialty.
SG&A will grow at a low-single-digit percentage.
R&D will continue to grow ahead of sales.
Interest charges and the tax rate are expected to increase year-on-year.
The phasing of operating profit growth will be heavily weighted towards the second half.
Currency could be a headwind, with an expected impact of minus 3% on sales and minus 6% on operating profit if rates hold at January 28th closing rates.
The company is on track to deliver 8% sales and 13% operating profit CAGR over the 2021-2026 period.
Cash generation is on track to reach more than £10 billion in 2026.
Q6M HIV treatment is on track for a 2028 to 2030 launch.
Q4M HIV treatment is on track to file in 2027 and launch in 2028.
