GSK Plc (LON:GSK) has announced 2nd quarter results.
| Strong Specialty Medicines performance drives sales and core operating profit growth | |
| • | Total Q2 2025 sales £8.0 billion +1% AER; +6% CER |
| • | Specialty Medicines sales £3.3 billion (+15%); Respiratory, Immunology & Inflammation £1.0 billion (+10%); Oncology £0.5 billion (+42%); HIV sales £1.9 billion (+12%) |
| • | Vaccines sales £2.1 billion (+9%); Shingrix £0.9 billion (+6%); Meningitis vaccines £0.4 billion (+22%); and Arexvy £0.1 billion (+13%) |
| • | General Medicines sales £2.6 billion (-6%); Trelegy £0.8 billion (+4%) |
| • | Total operating profit +33% and Total EPS +35% driven by lower CCL charges partly offset by intangible asset impairments |
| • | Core operating profit +12% and Core EPS +15% reflecting Specialty Medicines and Vaccines growth, higher royalty income and disciplined increased investment in R&D portfolio progression in Oncology and Vaccines |
| • | Cash generated from operations of £2.4 billion with free cash flow of £1.1 billion |
| (Financial Performance – Q2 2025 results unless otherwise stated, growth % and commentary at CER as defined on page 57. In Q2 2025, the adverse currency impact of AER versus CER primarily reflected the strengthening of Sterling against the USD. See page 10 for further details.) | |
| Q2 2025 | Year to date | ||||||||||
| £m | % AER | % CER | £m | % AER | % CER | ||||||
| Turnover | 7,986 | 1 | 6 | 15,502 | 2 | 5 | |||||
| Total operating profit | 2,023 | 23 | 33 | 4,239 | 35 | 41 | |||||
| Total operating margin % | 25.3% | 4.5ppts | 5.4ppts | 27.3% | 6.8ppts | 7.2ppts | |||||
| Total EPS | 35.5p | 23 | 35 | 75.3p | 38 | 45 | |||||
| Core operating profit | 2,631 | 5 | 12 | 5,164 | 4 | 8 | |||||
| Core operating margin % | 32.9% | 1.1ppts | 1.8ppts | 33.3% | 0.8ppts | 1.1ppts | |||||
| Core EPS | 46.5p | 7 | 15 | 91.4p | 6 | 10 | |||||
| Cash generated from operations | 2,433 | 47 | 3,734 | 35 | |||||||
| Pipeline progress and investment delivering future growth opportunities: | |
| 5 major new product approvals expected in 2025: | |
| • | 3 US Approvals now received for Penmenvy meningitis vaccine, Blujepa first-in-class antibiotic treatment for uUTIs and Nucala, anti-IL5 biologic for COPD |
| • | Blenrep (for multiple myeloma) approved in EU, Japan, UK, Canada and Switzerland. Constructive discussion ongoing with FDA with new PDUFA date set for 23 October 2025 |
| • | US regulatory decision on depemokimab (for asthma with type 2 inflammation, nasal polyps) expected in December 2025 |
| Progress on 14 key opportunities expected to launch 2025-2031 each with PYS potential above £2 billion: | |
| • | Phase III PIVOT-PO study for tebipenem, a potential new antibiotic for cUTIs, stopped early for efficacy, with filing now planned by year end |
| • | Phase III development programme for depemokimab COPD started with launch of ENDURA studies |
| • | Pivotal/Phase III trial starts planned in H2 25 for: potential cancer treatments GSK’227 B7H3 ADC for ES-SCLC and GSK’981 IDRx-42 for 2L GIST; efimosfermin for treatment of MASH; and cabotegravir ultra long acting + rilpivirine (Q4M) for HIV treatment |
| Targeted business development continues strengthening RI&I and Oncology pipeline | |
| • | Acquisition of efimosfermin a potential best in class specialty medicine for steatotic liver disease from Boston Pharmaceuticals completed |
| • | Agreements announced with Hengrui Pharma to develop up to 12 medicines in RI&I and Oncology, including licence for potential best-in-class PDE3/4 inhibitor in clinical development for treatment of COPD |
| Continued commitment to shareholder returns | |
| • | Dividend declared of 16p for Q2 2025; 64p expected for full year 2025 |
| • | £822 million spent in H1 2025 as part of the £2 billion share buyback programme announced at FY 2024 |
| Confident for delivery of 2025 guidance – towards top of range | |
| • | Increase towards the top end of range for turnover growth of 3% to 5%; Core operating profit growth of 6% to 8%; and Core EPS growth of 6% to 8% |
Guidance all at CER
Emma Walmsley, Chief Executive Officer, GSK: “GSK’s strong momentum in 2025 continues with another quarter of excellent performance driven mainly by Specialty Medicines, our largest business, with double-digit sales growth in Respiratory, Immunology & Inflammation, Oncology and HIV. We also continue to make very good progress in R&D, with 3 major FDA approvals achieved so far this year, 16 assets now in late-stage development, and 4 more promising medicines to treat cancer, liver disease and HIV expected to enter Phase III and pivotal development by the end of the year. With all this, we now expect to be towards the top end of our financial guidance for 2025 and remain confident in our long-term outlooks.”
The Total results are presented in summary above and on page 7 and Core results reconciliations are presented on pages 19 and 22. Core results are a non-IFRS measure that may be considered in addition to, but not as a substitute for, or superior to, information presented in accordance with IFRS. The following terms are defined on pages 57-58: Core results, AER% growth, CER% growth and other non-IFRS measures. GSK provides guidance on a Core results basis only for the reasons set out on page 17. All expectations, guidance and targets regarding future performance and dividend payments should be read together with ‘Guidance and outlooks, assumptions and cautionary statements’ on page 59-60. Abbreviations are defined on page 64.
2025 Guidance
GSK revises its full-year 2025 guidance at constant exchange rates (CER).
| Guidance | New 2025 guidance at CER | Previous 2025 guidance at CER |
| Turnover | Increase towards the top end of the range of between 3% to 5% | Increase between 3% to 5% |
| Core operating profit | Increase towards the top end of the range of between 6% to 8% | Increase between 6% to 8% |
| Core earnings per share | Increase towards the top end of the range of between 6% to 8% | Increase between 6% to 8% |
This guidance is supported by the following revised turnover expectations for full-year 2025 at CER
| Turnover expectations | New 2025 guidance at CER | Previous 2025 guidance at CER |
| Specialty Medicines | Increase at a low-teens percentage | Increase at a low double digit percentage |
| Vaccines | Decrease of low single-digit per cent to broadly stable | Decrease of a low single digit percent |
| General Medicines | Broadly stable | Broadly stable |
Core operating profit is now expected to grow towards the top end of the range of between 6 to 8 per cent at CER. GSK continues to expect to deliver gross margin benefit due to improved product mix from Specialty Medicines growth and continued operational efficiencies. In addition, GSK anticipates further leverage in Operating profit as we continue to take a returns-based approach to SG&A investments, with SG&A expected to grow at a low single-digit percentage. Royalty income is expected to be at £750-800 million, including an IP settlement agreed in April. R&D is now expected to grow ahead of sales reflecting accelerating investment in the pipeline including reinvestment of this additional income.
Core earnings per share is now expected to increase towards the top end of the range of between 6 to 8 per cent at CER, in line with Core operating profit growth, reflecting a higher tax rate which is expected to rise to around 17.5% and higher interest charges, offset by the expected benefit of up to 1% from the share buyback programme. Expectations for non-controlling interests remain unchanged relative to 2024.
Tariffs
GSK notes that the US Administration has initiated an investigation under Section 232 of the Trade Expansion Act to determine the effects on national security of imports of pharmaceutical products. Our guidance is inclusive of tariffs enacted thus far and the European tariffs indicated this week. We are positioned to respond to the potential financial impact of tariffs, with mitigation options identified. Given the uncertain external environment, we will continue to monitor developments.
Dividend policy
The Dividend policy and the expected pay-out ratio remain unchanged. Consistent with this, GSK has declared a dividend for Q2 2025 of 16p per share. GSK’s future dividend policy and guidance regarding the expected dividend pay-out in 2025 are provided on page 36.
GSK has commenced a £2 billion share buyback programme, to be implemented over the period to the end of Q2 2026.
2021-2026 and 2031 Outlooks
In February 2025 GSK set out improved outlooks for 2031. Please see 2024 full year and fourth quarter results on gsk.com(1).
Exchange rates
If exchange rates were to hold at the closing rates on 30 June 2025 ($1.37/£1, €1.17/£1 and Yen 198/£1) for the rest of 2025, the estimated impact on 2025 Sterling turnover growth for GSK would be -4% and if exchange gains or losses were recognised at the same level as in 2024, the estimated impact on 2025 Sterling Core Operating Profit growth for GSK would be -7%.
Results presentation
A conference call and webcast for investors and analysts of the quarterly results will be hosted by Emma Walmsley, CEO, at 12 noon BST (US EDT at 07.00 am) on 30 July 2025. Presentation materials will be published on www.gsk.com prior to the webcast and a transcript of the webcast will be published subsequently.
Notwithstanding the inclusion of weblinks, information available on the company’s website, or from non GSK sources, is not incorporated by reference into this Results Announcement.
(1) https://www.gsk.com/media/11776/fy-2024-results-announcement.pdf
