GSK Q2: strong core results, R&D acceleration and 20+ Phase III starts in 2026
- Total Q2 sales £8.4bn, up 5% (CER); Specialty Medicines £3.8bn (+14%) and Vaccines £2.3bn (+8%).
- Core operating profit +7% and Core EPS +9%; total operating profit -75% and total EPS -69% due to impairments and higher CCL charges.
- GSK now expects 20+ phase III trial starts in 2026 (previously 10) following acceleration of 7 assets across 18 indications.
- Three-year programme targeting £1.9bn annual savings by 2029, with implementation costs of £2.4bn (£2.1bn cash).
Financial performance
Total Q2 sales were £8.4bn, up 5% AER and CER, with Specialty Medicines at £3.8bn (+14%), Vaccines £2.3bn (+8%) and General Medicines £2.3bn (-9%). HIV sales were £2.1bn (+10%); Respiratory, Immunology & Inflammation £1.1bn (+19%); Oncology £0.6bn (+17%). Core operating profit rose 7% and Core EPS 9%, while total operating profit fell 75% and total EPS fell 69% largely due to higher impairments (notably a £1.3bn charge related to camlipixant) and higher CCL charges; these were partly offset by core profit growth and higher divestment income. Cash generated from operations was £2.9bn with free cash flow of £2.0bn.
Pipeline and regulatory progress
GSK acquired two late‑stage NSCLC medicines (Jideytro, already FDA approved, and neladalkib with a PDUFA in H2 2026). Positive phase III data were reported for Hansoh China's Ris‑Rez (lung cancer) and for bepirovirsen (chronic hepatitis B). AZUR‑1 data support Jemperli regulatory reviews in advanced rectal cancer. Arexvy approval expanded in Japan for adults 18–59 at increased RSV risk. Momelotinib (Ojjaara) received Orphan Drug Designations in the US and EU for VEXAS syndrome. Development of camlipixant in RCC will not progress after CALM‑1/2 results.
R&D acceleration and cost programme
GSK reports 62 clinical assets and has identified 7 asset accelerations across 18 indications in Oncology, Respiratory, Hepatology and Vaccines. The group now expects 20+ phase III trial starts in 2026. A new flagship R&D Centre will be established on the Cambridge Biomedical Campus. To fund late‑stage investment, a three‑year cost savings programme targets £1.9bn annual savings by 2029, with implementation costs of £2.4bn (£2.1bn cash).
Outlook and capital allocation
2026 guidance was reaffirmed: turnover growth 3–5%, Core OP and Core EPS each 7–9%. On track for a 2031 sales outlook of >£40bn with accelerating growth thereafter. Q2 dividend declared at 17p and a full‑year 2026 dividend expected at 70p; a previously announced £2bn buyback programme was completed.
Source: GSK