GSK Shares Gain But Sales Growth Expected to Slow in 2026

GSK (GSK) reported robust 2025 financial results, driven by its Specialty Medicines portfolio, but anticipates a slowdown in sales growth for 2026.

The pharmaceutical giant reaffirmed its long-term outlook, projecting sales exceeding £40 billion by 2031. However, investors should be aware of a potential slowdown in sales growth in 2026. The company sees sales growing between 3% and 5% this year, on a constant currency basis, compared to 7% in 2025.

Even so, GSK shares are up aound 1.5% on Wednesday morning.

Full-year 2025 sales reached £32.7 billion, a 7% increase at constant exchange rates (CER). Specialty Medicines led the charge with a 17% CER surge, fueled by strong performances in Respiratory, Immunology & Inflammation (RI&I), Oncology, and HIV.

Vaccines sales saw a modest 2% CER rise, with Shingrix and Meningitis vaccines contributing positively. General Medicines experienced a slight 1% CER decline.

Core operating profit jumped 11% and core EPS rose 12%, reflecting the strength of Specialty Medicines and Vaccines. SG&A productivity, higher royalty income, and increased R&D investment in Oncology and Vaccines also contributed to the positive results. Cash generated from operations amounted to £8.9 billion, resulting in a free cash flow of £4.0 billion.

GSK's pipeline progress was marked by five major FDA approvals in 2025, including Blenrep, Exdensur, and Penmenvy. The company also initiated seven pivotal trials, strengthening its RI&I and Oncology pipelines through acquisitions and collaborations. Looking ahead to 2026, GSK expects two new major product approvals and five pivotal readouts.

The company declared a Q4 2025 dividend of 18p, bringing the full-year dividend to 66p. GSK anticipates a 70p dividend for the full year 2026. The company has executed £1.4 billion of its £2 billion share buyback program, announced at FY 2024.

GSK anticipates turnover growth of 3% to 5% for 2026. Core operating profit and core EPS are expected to grow between 7% and 9%. These figures are at constant exchange rates (CER).

Driver Breakdown

• Specialty Medicines: Expected to drive growth with low double-digit turnover increase.
• Vaccines: Anticipated decline of low single-digit to stable turnover.
• General Medicines: Expected decline of low single-digit to stable turnover.

AskTraders Takeaway

Slower sales growth in 2026 may temper investor enthusiasm, leading to increased volatility. The continued share buyback program and dividend increases could provide some support for the stock.

CEO Luke Miels stated, “GSK delivered another strong performance in 2025, driven mainly by Specialty Medicines… We expect this positive momentum to continue in 2026.”