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GSK Beats on Q2 Earnings & Sales, Stock Gains on '25 Outlook Raise
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Key Takeaways
GSK's Q2 core EPS of $1.23 and $10.67 billion revenues beat estimates on strong product demand.
Specialty Medicines rose 15% and Vaccines 9%, offsetting General Medicines' 6% decline.
GSK raised 2025 sales and profit guidance toward the top end of prior forecasts.
GSK plc (GSK - Free Report) reported second-quarter 2025 core earnings of $1.23 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.12. Core earnings increased 7% year over year on a reported basis and 15% at a constant exchange rate (CER), driven by favorable product mix, higher royalty income and lower net finance costs during the quarter.
Quarterly revenues rose 1% on a reported basis and 6% at CER to $10.67 billion (£7.99 billion), driven by the rising sales of its HIV, oncology and vaccine products. This was partially offset by the soft sales performance of its respiratory medicines. The top line also beat the Zacks Consensus Estimate of $10.33 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
GSK’s Segmental Discussion
GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines increased 15%, Vaccine sales rose 9%. Sales in the General Medicines franchise declined 6%.
GSK’s Specialty Medicines Drive Top Line
HIV sales rose 12% during the quarter, driven by an increase in patient demand for Dovato and long-acting medications like Apretude and Cabenuva. Sales in the quarter also benefited from favorable customer ordering patterns, which were partially offset by some impact from the IRA Medicare Part D redesign.
GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising two-drug regimens — Dovato and J&J (JNJ - Free Report) -partnered Juluca — and three-drug regimens — Triumeq and Tivicay.
Dovato sales rose 23%, while those of the J&J-partnered Juluca declined 6%.
Triumeq sales declined 27% during the quarter, while those of Tivicay rose 8%.
Sales of Apretude and Cabenuva rose 50% and 46%, respectively. These two long-acting medicines contributed 70% of the total HIV growth during the quarter and now account for about 24% of HIV sales.
Oncology sales rose 42%, driven by strong demand for Jemperli and Ojjaara/Omjjara.
Jemperli sales rose 91% during the quarter, driven by increased patient uptake in the United States and Europe following approval for a broader patient population in August 2024.
New blood cancer drug Ojjaara/Omjjara generated £138 million in product sales compared with £112 million in the first quarter of 2025, driven by continued strong uptake in the United States. Contributions from Europe and International are also increasing, following recent launches in Japan, France, Spain and Italy.
Zejula sales fell 5% in the quarter due to lower sales across all regions.
Sales of the respiratory drug Nucala were up 7% during the quarter, mainly driven by strong performance across ex-US markets. This upside was partially offset by continued pricing pressures in the US due to the IRA Medicare Part D redesign.
Sales of the immuno-inflammation drug Benlysta were up 13% in the quarter, reflecting strong product demand across all regions.
GSK did not record any sales of its Vir Biotechnology (VIR - Free Report) -partnered Xevudy during the quarter.
GSK’s General Medicines Decline
This decline was primarily due to the soft sales performance of its asthma inhaler, Trelegy Ellipta, which only rose 4% during the quarter. This lower-than-expected sales performance was mainly attributed to modest sales growth in the United States, negatively impacted by the Medicare Part B redesign and higher channel mix pricing adjustments in the year-ago period.
Sales of Ventolin and Anoro Ellipta each fell 6%. Relvar/Breo Ellipta sales declined 2%.
While Advair/Seretide sales declined 30%, sales of Flixotide/Flovent fell 12%.
GSK’s Vaccine Sales Rise
This rise was primarily driven by increased uptake of meningitis and shingles vaccines.
Sales of the company’s shingles vaccine, Shingrix, rose 6% during the quarter, driven by rising sales in Europe. This was partially offset by lower sales in the United States and International markets.
In Meningitis vaccines, sales of Bexsero rose 26%, while Menveo sales were up 15%. Sales of the RSV vaccine, Arexvy, rose 13% during the quarter, driven by uptake in ex-US markets.
Sales of Established vaccines rose 6%, driven primarily by favorable CDC stockpile movements for Infanrix/Pediarix in the United States.
Operating Expenses
Core selling, general and administration costs declined 1% to £2.09 billion. This downside was primarily due to the acceleration of productivity initiatives and the phasing of spend between quarters.
Core research and development expenses rose 11% to £1.52 billion, attributed to the company’s continued investment in pipeline advancement.
GSK Lifts 2025 Guidance
The company revised its financial guidance for 2025. GSK now expects sales to increase toward the top end of its previously issued guided range of 3-5%.
Sales of Specialty Medicines are now expected to increase at a low teens percentage at CER in 2025 compared with the previously expected low double-digit percentage growth. GSK reiterated its sales guidance for the General Medicines segment, which is expected to be broadly stable at CER.
The company also upgraded its Vaccine sales outlook for the year. GSK now expects sales to decrease by a low single-digit percentage to remain broadly stable compared with the previous expectation of a decline by a low single-digit percentage.
Like sales, GSK expects both core operating profit and core EPS to grow toward the top end of its previously issued guided range of 6-8%.
GSK also reiterated most of its previously issued guidance. R&D is expected to increase at a rate slightly higher than sales growth, while SG&A is expected to grow at a low single-digit percentage. The adjusted tax rate is expected to be around 17.5%.
Per GSK, the above guidance factors in the impact of tariffs.
Our Take on GSK’s Results
GSK reported encouraging second-quarter results. The Specialty Medicines and Vaccine franchises continued to drive its sales, partially offset by the softer performance of the General Medicines segment. The company’s U.S. sales were partially impacted by pricing pressures from the Medicare Part D redesign, which offset the volume growth for many products, most notably Trelegy.
Despite these headwinds, the company raised its outlook for the full year. Alongside the results, GSK reiterated its outlook for 2031, expecting to generate sales of more than £40 billion. Shares of GSK were trading higher in pre-market today, likely attributed to these factors.
The stock has gained 11% year to date compared with the industry’s 1% growth.
Image Source: Zacks Investment Research
To support its long-term targets, GSK has prioritized focus on HIV, immunology/respiratory and oncology therapeutic areas. It has 84 assets in clinical development, which include 16 candidates that are either in late-stage development or under regulatory review.
This year, the company expects to launch five new products/line extensions. The FDA has already approved three products during the first half of 2025 — Blujepa (for uncomplicated urinary tract infection), Penmenvy (the five-in-one meningococcal vaccine) and Nucala (for COPD). Regulatory decisions on the remaining two — Blenrep (relaunch in multiple myeloma) and depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) — are pending and anticipated in the second half of the year.
GSK intends to launch 14 new drugs between 2025 and 2031, each with a peak sales potential of more than £2 billion.
Image: Bigstock
GSK Beats on Q2 Earnings & Sales, Stock Gains on '25 Outlook Raise
Key Takeaways
GSK plc (GSK - Free Report) reported second-quarter 2025 core earnings of $1.23 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.12. Core earnings increased 7% year over year on a reported basis and 15% at a constant exchange rate (CER), driven by favorable product mix, higher royalty income and lower net finance costs during the quarter.
Quarterly revenues rose 1% on a reported basis and 6% at CER to $10.67 billion (£7.99 billion), driven by the rising sales of its HIV, oncology and vaccine products. This was partially offset by the soft sales performance of its respiratory medicines. The top line also beat the Zacks Consensus Estimate of $10.33 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
GSK’s Segmental Discussion
GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines increased 15%, Vaccine sales rose 9%. Sales in the General Medicines franchise declined 6%.
GSK’s Specialty Medicines Drive Top Line
HIV sales rose 12% during the quarter, driven by an increase in patient demand for Dovato and long-acting medications like Apretude and Cabenuva. Sales in the quarter also benefited from favorable customer ordering patterns, which were partially offset by some impact from the IRA Medicare Part D redesign.
GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising two-drug regimens — Dovato and J&J (JNJ - Free Report) -partnered Juluca — and three-drug regimens — Triumeq and Tivicay.
Dovato sales rose 23%, while those of the J&J-partnered Juluca declined 6%.
Triumeq sales declined 27% during the quarter, while those of Tivicay rose 8%.
Sales of Apretude and Cabenuva rose 50% and 46%, respectively. These two long-acting medicines contributed 70% of the total HIV growth during the quarter and now account for about 24% of HIV sales.
Oncology sales rose 42%, driven by strong demand for Jemperli and Ojjaara/Omjjara.
Jemperli sales rose 91% during the quarter, driven by increased patient uptake in the United States and Europe following approval for a broader patient population in August 2024.
New blood cancer drug Ojjaara/Omjjara generated £138 million in product sales compared with £112 million in the first quarter of 2025, driven by continued strong uptake in the United States. Contributions from Europe and International are also increasing, following recent launches in Japan, France, Spain and Italy.
Zejula sales fell 5% in the quarter due to lower sales across all regions.
Sales of the respiratory drug Nucala were up 7% during the quarter, mainly driven by strong performance across ex-US markets. This upside was partially offset by continued pricing pressures in the US due to the IRA Medicare Part D redesign.
Sales of the immuno-inflammation drug Benlysta were up 13% in the quarter, reflecting strong product demand across all regions.
GSK did not record any sales of its Vir Biotechnology (VIR - Free Report) -partnered Xevudy during the quarter.
GSK’s General Medicines Decline
This decline was primarily due to the soft sales performance of its asthma inhaler, Trelegy Ellipta, which only rose 4% during the quarter. This lower-than-expected sales performance was mainly attributed to modest sales growth in the United States, negatively impacted by the Medicare Part B redesign and higher channel mix pricing adjustments in the year-ago period.
Sales of Ventolin and Anoro Ellipta each fell 6%. Relvar/Breo Ellipta sales declined 2%.
While Advair/Seretide sales declined 30%, sales of Flixotide/Flovent fell 12%.
GSK’s Vaccine Sales Rise
This rise was primarily driven by increased uptake of meningitis and shingles vaccines.
Sales of the company’s shingles vaccine, Shingrix, rose 6% during the quarter, driven by rising sales in Europe. This was partially offset by lower sales in the United States and International markets.
In Meningitis vaccines, sales of Bexsero rose 26%, while Menveo sales were up 15%. Sales of the RSV vaccine, Arexvy, rose 13% during the quarter, driven by uptake in ex-US markets.
Sales of Established vaccines rose 6%, driven primarily by favorable CDC stockpile movements for Infanrix/Pediarix in the United States.
Operating Expenses
Core selling, general and administration costs declined 1% to £2.09 billion. This downside was primarily due to the acceleration of productivity initiatives and the phasing of spend between quarters.
Core research and development expenses rose 11% to £1.52 billion, attributed to the company’s continued investment in pipeline advancement.
GSK Lifts 2025 Guidance
The company revised its financial guidance for 2025. GSK now expects sales to increase toward the top end of its previously issued guided range of 3-5%.
Sales of Specialty Medicines are now expected to increase at a low teens percentage at CER in 2025 compared with the previously expected low double-digit percentage growth. GSK reiterated its sales guidance for the General Medicines segment, which is expected to be broadly stable at CER.
The company also upgraded its Vaccine sales outlook for the year. GSK now expects sales to decrease by a low single-digit percentage to remain broadly stable compared with the previous expectation of a decline by a low single-digit percentage.
Like sales, GSK expects both core operating profit and core EPS to grow toward the top end of its previously issued guided range of 6-8%.
GSK also reiterated most of its previously issued guidance. R&D is expected to increase at a rate slightly higher than sales growth, while SG&A is expected to grow at a low single-digit percentage. The adjusted tax rate is expected to be around 17.5%.
Per GSK, the above guidance factors in the impact of tariffs.
Our Take on GSK’s Results
GSK reported encouraging second-quarter results. The Specialty Medicines and Vaccine franchises continued to drive its sales, partially offset by the softer performance of the General Medicines segment. The company’s U.S. sales were partially impacted by pricing pressures from the Medicare Part D redesign, which offset the volume growth for many products, most notably Trelegy.
Despite these headwinds, the company raised its outlook for the full year. Alongside the results, GSK reiterated its outlook for 2031, expecting to generate sales of more than £40 billion. Shares of GSK were trading higher in pre-market today, likely attributed to these factors.
The stock has gained 11% year to date compared with the industry’s 1% growth.
Image Source: Zacks Investment Research
To support its long-term targets, GSK has prioritized focus on HIV, immunology/respiratory and oncology therapeutic areas. It has 84 assets in clinical development, which include 16 candidates that are either in late-stage development or under regulatory review.
This year, the company expects to launch five new products/line extensions. The FDA has already approved three products during the first half of 2025 — Blujepa (for uncomplicated urinary tract infection), Penmenvy (the five-in-one meningococcal vaccine) and Nucala (for COPD). Regulatory decisions on the remaining two — Blenrep (relaunch in multiple myeloma) and depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) — are pending and anticipated in the second half of the year.
GSK intends to launch 14 new drugs between 2025 and 2031, each with a peak sales potential of more than £2 billion.
GSK PLC Sponsored ADR Price
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GSK’s Zacks Rank
GSK currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.