GSK (LON: GSK) said third-quarter total operating profit fell 16% at constant exchange rates; reported operating profit was £2,127m, driven mainly by a £328m restructuring charge despite 5% sales growth. The drugmaker, which makes medicines and vaccines, said core operating profit, which excludes items such as restructuring, rose 5%.
Sales were £8.9bn, up 5% at constant exchange rates (CER), which strips out currency swings. On a reported basis, sales rose 4%, and total operating profit fell 18%.
Specialty Medicines carried the quarter, with sales of £3.9bn, up 15%. HIV brought in £2.1bn, up 10%, including Cabenuva at £478m, up 35%. Respiratory, immunology and inflammation rose 21% to £1.1bn, and oncology rose 23% to £0.6bn.
Vaccines slipped 2% to £2.6bn. Shingrix fell 5% to £780m, and Arexvy dropped 24% to £195m, while meningitis vaccines rose 12% to £599m. General Medicines was stable at £2.4bn, with Trelegy up 8% to £787m.
The restructuring charge relates to Accelerate Growth, a three-year programme launched in the quarter. It targets £1.9bn in annual savings, fully by 2029, for a total cost of £2.4bn, £2.1bn of which is cash. Most charges fall in 2026 and 2027, and the company will mainly reinvest the savings in research and development.
Total earnings per share fell 21% to 38.5p. Core earnings per share rose just 1% to 54.6p, as core R&D spending climbed 22% to £1,874m and core net finance expense rose 50% to £197m, which GSK linked to Nuvalent.
Free cash flow rose 67% to £2,078m from £1,246m a year earlier. Net debt stood at £20,739m at the end of September, against £14,453m at the end of 2025. Net acquisition costs were £7,143m for Nuvalent, £1,404m for RAPT and £700m for 35Pharma.
GSK reaffirmed 2026 CER guidance: turnover growth of 3% to 5% and core operating profit growth of 7% to 9%, both in the upper half, and core earnings per share growth of 7% to 9%, in the lower half.
GSK has delivered another strong quarter, with our key growth drivers and new launches performing well. We remain focused on operational delivery, execution and accelerating R&D.
Luke Miels, Chief Executive Officer, GSK
The quarterly dividend is 17p, up from 16p a year earlier, with 70p expected for 2026. It goes ex-dividend on 12 November and is paid on 7 January. GSK holds a results call at 12:00 today.