GSK Shares Gain on Strong Q3, Upgrades Full-Year Guidance

GSK (LON: GSK) delivered a robust third-quarter performance, prompting an upgrade to its full-year 2025 guidance and sending its shares over 3% higher at the open on Wednesday.

The pharmaceutical giant's success was fueled by strong sales growth across its Specialty Medicines, Vaccines, and General Medicines segments.

Total Q3 2025 sales reached £8.5 billion, reflecting a 7% increase on an Actual Exchange Rate (AER) basis and an 8% increase on a Constant Exchange Rate (CER) basis. Year-to-date turnover reached £24.049 billion, representing 3% AER and 6% CER.

Specialty Medicines led the charge with sales of £3.4 billion, a 16% increase. Respiratory, Immunology & Inflammation contributed £1.0 billion (+15%), Oncology £0.5 billion (+39%), and HIV sales reached £1.9 billion (+12%). Vaccines sales increased 2% to £2.7 billion, driven by Shingrix (£0.8 billion, +13%) and Arexvy (£0.3 billion, +36%). General Medicines saw a 4% increase to £2.5 billion, with Trelegy contributing £0.7 billion (+25%).

Operating profit witnessed substantial growth, exceeding 100%, and total Earnings Per Share (EPS) also increased by over 100%. Core operating profit rose by 11%, and Core EPS increased by 14%, reflecting the strength of Specialty Medicines and Vaccines, coupled with higher royalty income and strategic investments in R&D.

Cash generated from operations amounted to £2.5 billion, resulting in a free cash flow of £1.2 billion.

The company declared a dividend of 16p for Q3 2025, with an expected total dividend of 64p for the full year. GSK has also spent £1.1 billion year-to-date as part of its £2 billion share buyback program, announced at FY 2024, demonstrating a commitment to shareholder returns.

GSK now anticipates 2025 turnover growth of between 6% and 7%, an increase from the previous guidance of “towards the top end of the range of between 3% and 5%.”

Core operating profit growth is now projected to be between 9% and 11%, up from the prior range of 6% to 8%. Core EPS growth is also upgraded to between 10% and 12%, exceeding the earlier expectation of 6% to 8%.

Emma Walmsley, Chief Executive Officer, GSK, stated, “GSK's momentum continues with another quarter of strong performance, supporting upgraded guidance for 2025, and positioning us well for 2026 and achieving our longer-term growth outlooks.” She also thanked everyone who has contributed to the transformation of GSK in the last nine years, and is “delighted to be passing the baton to Luke and to be leaving all that GSK has to offer in such good hands.”