GSK PLC Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
GSK PLC's Q3 2025 earnings call highlighted strong financial performance, driven by specialty medicines, HIV, and oncology, leading to upgraded full-year guidance. Key discussion points included business segment results, capital allocation strategies, growth opportunities, and future financial outlook, with emphasis on R&D investment and pipeline development.
Key Financial Results
Total sales were up 8% for the quarter.
Core operating profit increased by 11%.
Core earnings per share (EPS) rose by 14% to £0.55.
Cash generation remained positive at £6.3 billion year-to-date.
A dividend of £0.16 was declared for the quarter.
Business Segment Results
Specialty Medicines sales increased by 16%, driven by demand in RI&I, Oncology, and HIV.
RI&I sales were up 15%, driven by strong demand.
Oncology portfolio grew by 39%.
HIV portfolio grew by 12%, driven by long-acting injectables and Dovato.
Vaccines sales were up 2%, driven by Shingrix, Arexvy and Bexsero.
General Medicines sales were up 4%, driven by Trelegy.
Capital Allocation
Investment in R&D and advanced manufacturing in the US is expected to reach $30 billion over the next five years.
The company is focused on disciplined cash deployment, underpinned by a strong balance sheet.
Shareholder distributions of £3 billion have been made this year through dividends and buybacks.
Net debt to core EBITDA ratio remains broadly aligned with the end of 2024 at 1.3 times.
Industry Trends and Dynamics
Strong demand for Shingrix, Arexvy, and meningitis vaccines in Europe.
Continued transition to long-acting injectables in HIV treatment.
Growing market for biologics in COPD treatment, but less than 5% biologic penetration in the US.
Competitive Landscape
Jemperli's global market share in endometrial cancer is now higher than the leading competitor in dMMR.
Acceleration of Cabenuva switches from competitors in the US, reaching 75% this quarter.
Apretude saw competitive growth of 75% in the US.
Competitive pressure in the market for flu vaccines.
Macroeconomic Environment
Navigating the impact of the Medicare redesign from the IRA, expected to be closer to the lower end of the £400 million to £500 million range.
The company is positioned to respond to tariffs with mitigation actions identified.
Growth Opportunities and Strategies
Focus on investing for growth in the late-stage portfolio and building the next wave of innovation.
Expansion of the pipeline through business development, including the addition of efimosfermin.
Progressing key Oncology pipeline assets, including GSK5764227 and GSK6042981.
Advancing long-acting injectable portfolio in HIV treatment, with multiple options and strong profiles.
Optimizing the supply chain to scale up capacity for new medicines and vaccines.
Financial Guidance and Outlook
Upgraded full-year sales expectations from 3% to 5% to 6% to 7%.
Raised guidance ranges for operating profit to 9% to 11% and EPS to 10% to 12%.
Expect to land towards the top of the Vaccines guidance range of declining low single digit to stable.
Royalties are expected to be higher, in the range of £800 million to £850 million.
The company remains confident in its medium and longer-term outlooks to 2026 and 2031.
