GSK reported second-quarter 2026 sales of £8.41 billion, representing growth of 5% at both actual and constant exchange rates, as strength in Specialty Medicines and Vaccines offset declining General Medicines revenue.
Core operating profit increased 7% at constant exchange rates to £2.8 billion, while core earnings per share rose 9% to 50.5 pence.
GSK generated £2.91 billion in cash from operations during the quarter and approximately £2 billion in free cash flow.
The company’s total results were substantially weaker because of impairment charges and other adjusting items.
Total operating profit declined 75% at constant exchange rates to £481 million, and total earnings per share fell 69% to 10.8 pence.
The decline primarily reflected higher impairments, including approximately £1.3 billion associated with camlipixant, as well as increased charges related to contingent consideration liabilities.
GSK decided not to continue developing camlipixant for refractory chronic cough following results from the Phase III CALM-1 and CALM-2 studies.
Specialty Medicines remained GSK’s largest growth contributor, with sales increasing 14% to £3.78 billion.
HIV product sales grew 10% at constant exchange rates to £2.08 billion. Respiratory, Immunology and Inflammation sales increased 19% to £1.14 billion, while Oncology revenue rose 17% to £569 million.
Oncology growth reflected increasing demand for Jemperli, Ojjaara and Blenrep, partially offset by lower Zejula sales.
Jemperli generated £248 million, increasing 27%, while Ojjaara and Omjjara sales grew 36% to £187 million. Zejula revenue declined 34% at constant exchange rates to £101 million.
Vaccines sales increased 8% at constant exchange rates to £2.28 billion.
Shingrix revenue rose 3% to £888 million, while meningitis vaccine sales increased 21% to £462 million.
Arexvy revenue more than doubled to £192 million, supported by broader use of the respiratory syncytial virus vaccine and its expanded approval in Japan for adults aged 18 to 59 at increased risk of RSV.
Other pediatric and adult vaccine sales declined 8% at constant exchange rates to £731 million.
General Medicines sales declined 9% to £2.34 billion. Respiratory product revenue fell 10% to £1.68 billion, while sales of other General Medicines decreased 4% to £664 million.
Trelegy sales declined approximately 7% during the quarter.
GSK’s product mix helped improve its core profitability despite the decline in General Medicines. Core operating margin increased 60 basis points at constant exchange rates to 33.3%.
Core research and development spending rose 13% to £1.72 billion as GSK invested in its late-stage pipeline and new product launches. Selling, general and administrative expenses increased 5% to £2.19 billion, while royalty income declined 17% to £204 million.
Alongside its results, GSK announced an expanded research and development strategy that will increase the number of Phase III trial starts expected in 2026 to more than 20, up from its previous forecast of 10.
The company has 62 assets in clinical development, including 19 in Phase III. GSK identified opportunities to accelerate seven products across 18 indications involving oncology, respiratory diseases, hepatology and vaccines.
The company also plans to establish a flagship research center at the Cambridge Biomedical Campus in the United Kingdom.
To finance greater investment in its pipeline, GSK launched a three-year Accelerate Growth restructuring program.
The initiative targets £1.9 billion in annual savings by 2029 and is expected to require approximately £2.4 billion in total costs, including £2.1 billion in cash expenses.
Most of the charges are expected during 2026 and 2027.
GSK plans to generate savings through technology and AI adoption, streamlined support services, process redesign, procurement improvements, changes to the supply chain and the reallocation of resources from established products toward Specialty Medicines.
Most of the savings will be reinvested in research, development and business development. A portion will be used to improve profitability during the expected loss of exclusivity for the HIV treatment dolutegravir between 2028 and 2030.
GSK reaffirmed its full-year guidance while providing greater detail about where it expects results to fall within the existing ranges.
The company expects 2026 sales to increase between 3% and 5% at constant exchange rates, with growth now anticipated in the upper half of that range.
Core operating profit is also expected to increase by 7%-9%, with performance in the upper half of the range.
Core earnings per share are forecast to grow between 7% and 9%, although GSK now expects the result to fall in the lower half of the range due to higher interest expenses and an anticipated increase in its tax rate.
GSK raised its expectations for Vaccines, forecasting sales growth ranging from broadly stable to low-single digits. Its previous outlook called for a low-single-digit decline, with sales approximately flat.
Specialty Medicines revenue is expected to grow at a low-double-digit rate.
General Medicines sales are now projected to decline by a percentage in the low- to mid-single digits, compared with the previous expectation of a low-single-digit decline to broadly stable results.
The company remains on track to achieve more than £40 billion in annual sales by 2031 and expects growth to accelerate thereafter.
GSK declared a second-quarter dividend of 17 pence per share and continues to expect a full-year dividend of 70 pence. It also completed the £2 billion share repurchase program announced with its 2024 results.
KEY QUOTE:
“GSK has delivered another quarter of strong core results performance, with our key growth drivers performing well.”
Luke Miels, Chief Executive Officer of GSK
