GSK Q3 Results Beat Estimates
GSK Q3 results show Specialty Medicines powered a core profit and EPS beat and declared a dividend while reaffirming guidance, boosting investor sentiment.
KEY TAKEAWAYS
- Specialty Medicines sales rose 15.0% and powered the quarter, lifting core operating profit.
- Core EPS was 54.6 pence, exceeding a company-compiled 50.4 pence consensus.
- The board declared a third interim dividend of 17 pence and reaffirmed 2026 guidance.
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On Oct. 28, 2026, GSK said specialty medicines and oncology launches powered third-quarter momentum, pushing core operating profit and core EPS higher while the board declared an interim dividend and the company reaffirmed full-year guidance.
Specialty Medicines Lift Sales and Profit
GSK reported third-quarter sales of £8.9 billion, up 4.0% at actual exchange rates and 5.0% at constant exchange rates (CER), exceeding a company-compiled estimate of £8.8 billion. Specialty Medicines sales rose 15.0% to £3.9 billion, driven by HIV at £2.1 billion (up 10.0%), Respiratory, Immunology & Inflammation at £1.1 billion (up 21.0%), and Oncology at £0.6 billion (up 23.0%). The company said strong Specialty Medicines performance drove sales and core operating profit growth.
Vaccines revenue declined 2.0% to £2.6 billion, with Shingrix down 5.0% to £0.8 billion and Arexvy, an RSV vaccine, falling 24.0% to £0.2 billion. Meningitis vaccines rose 12.0% to £0.6 billion. General Medicines sales held steady at £2.4 billion, with Trelegy increasing 8.0% to £0.8 billion.
Core operating profit rose 3.0% at actual exchange rates and 5.0% CER to £3.1 billion, delivering a core operating margin of 34.6%. Core EPS increased 1.0% CER to 54.6 pence, surpassing a company-compiled consensus estimate of 50.4 pence. Statutory operating profit fell 16.0% and statutory EPS declined 21.0%, primarily due to a £328 million restructuring charge linked to the Accelerate Growth programme and lower other net operating income.
The quarter benefited from higher sales, a favorable product and regional mix, and increased royalty income. These gains were partly offset by greater research and development investment, new-asset launch costs, and higher finance expenses.
Guidance Reaffirmed Amid Strong Cash Flow
GSK reaffirmed 2026 turnover growth of 3.0% to 5.0% at CER and said it remains on track for 2031 sales above £40 billion. The company expects operating margin to remain stable or improve through the anticipated dolutegravir loss-of-exclusivity period from 2028 to 2030.
Cash generated from operations totaled £3.1 billion, with free cash flow of £2.1 billion in the quarter. The board declared a third interim dividend of 17 pence per share.
