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GSK's Q3 Earnings & Sales Beat Estimates, Stock Up on Raised '25 View
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Key Takeaways
GSK's Q3 core EPS rose 11% as sales climbed 7% to $11.52B, surpassing consensus estimates.
HIV, oncology and respiratory drugs drove results, led by Dovato, Cabenuva and Jemperli.
GSK raised 2025 guidance, now expecting 6-7% sales growth and 10-12% core EPS expansion.
GSK plc (GSK - Free Report) reported third-quarter 2025 core earnings of $1.48 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.26. Core earnings increased 11% year over year on a reported basis and 14% 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 7% on a reported basis and 8% at CER to $11.52 billion (£8.55 billion), driven by the rising sales across all business segments, especially HIV, oncology and respiratory medicines. The top line also beat the Zacks Consensus Estimate of $11.16 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 16%, the General Medicines franchise rose 4%. Sales in the Vaccine segment were up 2%.
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 pricing due to channel mix, which offset the impact of 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 24%, while those of the J&J-partnered Juluca declined 2%.
Tivicay sales remained flat during the quarter, while those of Triumeq fell 26%.
Sales of Apretude and Cabenuva rose 75% and 48%, respectively. These two long-acting medicines contributed more than 75% of the total HIV growth during the quarter and now account for nearly 25% of HIV sales.
Oncology sales rose 39%, driven by strong demand for Jemperli and Ojjaara/Omjjara.
Jemperli sales rose 79% during the quarter, driven by increased patient uptake across the United States and Europe following the drug’s label expansion to treat all adult patients with primary advanced or recurrent endometrial cancer.
New blood cancer drug Ojjaara/Omjjara generated £146 million in product sales, compared with £138 million in the second quarter of 2025, driven by continued strong uptake in the United States. Contributions from Europe and International are also increasing, following recent launches in France, Spain, Italy, Australia and Canada.
Zejula sales fell 4% in the quarter due to increased competition across ex-U.S. territories.
Sales of the respiratory drug Nucala were up 14% during the quarter, mainly driven by strong performance across all markets. This upside was partially offset by continued pricing pressures in the United States due to the IRA Medicare Part D redesign.
Sales of the immuno-inflammation drug Benlysta were up 17% in the quarter, reflecting strong product demand across the United States and Europe.
GSK did not record any sales of its Vir Biotechnology (VIR - Free Report) -partnered Xevudy during the quarter.
GSK’s General Medicines Rise
This rise was primarily due to the encouraging sales performance of its asthma inhaler, Trelegy Ellipta, which rose 25% during the quarter. This sales growth was mainly attributed to strong volume growth across all marketed regions, which more than offset the continued pricing pressures in the United States due to the IRA Medicare Part D redesign.
While Anoro Ellipta sales fell 5%, sales of Ventolin declined 10%. Relvar/Breo Ellipta sales rose 7%.
While Advair/Seretide sales declined 7%, sales of Flixotide/Flovent fell 12%.
GSK’s Vaccine Sales Rise
This increase was mainly driven by increased uptake of meningitis, RSV and shingles vaccines in ex-U.S. markets.
Sales of the company’s shingles vaccine, Shingrix, rose 13% during the quarter, driven by rising sales in ex-U.S. markets. This was partially offset by lower sales in the United States.
In Meningitis vaccines, sales of Bexsero rose 11%, while Menveo sales were down 1%. Sales of the RSV vaccine, Arexvy, rose 36% during the quarter, driven by uptake in ex-U.S. markets.
Sales of Established vaccines declined 8%, owing to the impact of divested brands, as well as lower sales for Cervarix and Synflorix vaccines. Sales growth was also impacted due to unfavorable CDC stockpile movements for the Boostrix vaccine in the United States.
Operating Expenses
Core selling, general and administration costs rose 5% to £2.16 billion. This upside was primarily due to continued disciplined investments to support new product launches.
Core research and development expenses rose 10% to £1.55 billion, attributed to the company’s continued investment in pipeline advancement.
GSK Upgrades 2025 Guidance
The company raised its financial guidance for 2025. GSK now expects sales to increase 6-7% during the year, compared to the previously issued guidance of achieving growth towards the top end of the 3-5% range.
Sales of Specialty Medicines are now expected to increase at a mid-teens percentage at CER in 2025, compared with the previously expected low-teens percentage growth. GSK reiterated its sales guidance for the General Medicines segment, which is expected to be broadly stable at CER.
The company also reiterated its Vaccine sales outlook for the year, expecting sales to either decrease by a low single-digit percentage or remain broadly stable.
GSK also increased guidance for both core operating profit and core EPS. It now expects core operating profit to grow 9-11%, while core EPS is expected to rise by 10-12%. Before this revision, the company forecasted both metrics 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 better-than-expected Q3 results. The Specialty Medicines and General Medicines franchises continued to drive the company’s sales, partially offset by the soft performance of the Vaccines segment. Although U.S. sales were partly impacted by pricing pressures from the Medicare Part D redesign and softer demand for the Arexvy and Shingrix vaccines, they were more than offset by volume growth for many products, including Dovato, Cabenuva, Apretude, Jemperli and Trelegy.
Driven by the encouraging demand for its marketed drugs, GSK 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 29% year to date, compared with the industry’s 11% growth.
Image Source: Zacks Investment Research
To support its long-term targets, GSK has prioritized its focus on HIV, immunology/respiratory and oncology therapeutic areas. It has 80 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 approved four products so far this year — Blujepa (for uncomplicated urinary tract infection), Penmenvy (the 5-in-1 meningococcal vaccine), Nucala (for COPD) and Blenrep (relaunch in multiple myeloma). The FDA’s decision on depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) is anticipated in December.
GSK intends to launch 15 new drugs between 2025 and 2031, each with a peak sales potential of over £2 billion.
Image: Bigstock
GSK's Q3 Earnings & Sales Beat Estimates, Stock Up on Raised '25 View
Key Takeaways
GSK plc (GSK - Free Report) reported third-quarter 2025 core earnings of $1.48 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.26. Core earnings increased 11% year over year on a reported basis and 14% 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 7% on a reported basis and 8% at CER to $11.52 billion (£8.55 billion), driven by the rising sales across all business segments, especially HIV, oncology and respiratory medicines. The top line also beat the Zacks Consensus Estimate of $11.16 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 16%, the General Medicines franchise rose 4%. Sales in the Vaccine segment were up 2%.
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 pricing due to channel mix, which offset the impact of 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 24%, while those of the J&J-partnered Juluca declined 2%.
Tivicay sales remained flat during the quarter, while those of Triumeq fell 26%.
Sales of Apretude and Cabenuva rose 75% and 48%, respectively. These two long-acting medicines contributed more than 75% of the total HIV growth during the quarter and now account for nearly 25% of HIV sales.
Oncology sales rose 39%, driven by strong demand for Jemperli and Ojjaara/Omjjara.
Jemperli sales rose 79% during the quarter, driven by increased patient uptake across the United States and Europe following the drug’s label expansion to treat all adult patients with primary advanced or recurrent endometrial cancer.
New blood cancer drug Ojjaara/Omjjara generated £146 million in product sales, compared with £138 million in the second quarter of 2025, driven by continued strong uptake in the United States. Contributions from Europe and International are also increasing, following recent launches in France, Spain, Italy, Australia and Canada.
Zejula sales fell 4% in the quarter due to increased competition across ex-U.S. territories.
Sales of the respiratory drug Nucala were up 14% during the quarter, mainly driven by strong performance across all markets. This upside was partially offset by continued pricing pressures in the United States due to the IRA Medicare Part D redesign.
Sales of the immuno-inflammation drug Benlysta were up 17% in the quarter, reflecting strong product demand across the United States and Europe.
GSK did not record any sales of its Vir Biotechnology (VIR - Free Report) -partnered Xevudy during the quarter.
GSK’s General Medicines Rise
This rise was primarily due to the encouraging sales performance of its asthma inhaler, Trelegy Ellipta, which rose 25% during the quarter. This sales growth was mainly attributed to strong volume growth across all marketed regions, which more than offset the continued pricing pressures in the United States due to the IRA Medicare Part D redesign.
While Anoro Ellipta sales fell 5%, sales of Ventolin declined 10%. Relvar/Breo Ellipta sales rose 7%.
While Advair/Seretide sales declined 7%, sales of Flixotide/Flovent fell 12%.
GSK’s Vaccine Sales Rise
This increase was mainly driven by increased uptake of meningitis, RSV and shingles vaccines in ex-U.S. markets.
Sales of the company’s shingles vaccine, Shingrix, rose 13% during the quarter, driven by rising sales in ex-U.S. markets. This was partially offset by lower sales in the United States.
In Meningitis vaccines, sales of Bexsero rose 11%, while Menveo sales were down 1%. Sales of the RSV vaccine, Arexvy, rose 36% during the quarter, driven by uptake in ex-U.S. markets.
Sales of Established vaccines declined 8%, owing to the impact of divested brands, as well as lower sales for Cervarix and Synflorix vaccines. Sales growth was also impacted due to unfavorable CDC stockpile movements for the Boostrix vaccine in the United States.
Operating Expenses
Core selling, general and administration costs rose 5% to £2.16 billion. This upside was primarily due to continued disciplined investments to support new product launches.
Core research and development expenses rose 10% to £1.55 billion, attributed to the company’s continued investment in pipeline advancement.
GSK Upgrades 2025 Guidance
The company raised its financial guidance for 2025. GSK now expects sales to increase 6-7% during the year, compared to the previously issued guidance of achieving growth towards the top end of the 3-5% range.
Sales of Specialty Medicines are now expected to increase at a mid-teens percentage at CER in 2025, compared with the previously expected low-teens percentage growth. GSK reiterated its sales guidance for the General Medicines segment, which is expected to be broadly stable at CER.
The company also reiterated its Vaccine sales outlook for the year, expecting sales to either decrease by a low single-digit percentage or remain broadly stable.
GSK also increased guidance for both core operating profit and core EPS. It now expects core operating profit to grow 9-11%, while core EPS is expected to rise by 10-12%. Before this revision, the company forecasted both metrics 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 better-than-expected Q3 results. The Specialty Medicines and General Medicines franchises continued to drive the company’s sales, partially offset by the soft performance of the Vaccines segment. Although U.S. sales were partly impacted by pricing pressures from the Medicare Part D redesign and softer demand for the Arexvy and Shingrix vaccines, they were more than offset by volume growth for many products, including Dovato, Cabenuva, Apretude, Jemperli and Trelegy.
Driven by the encouraging demand for its marketed drugs, GSK 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 29% year to date, compared with the industry’s 11% growth.
Image Source: Zacks Investment Research
To support its long-term targets, GSK has prioritized its focus on HIV, immunology/respiratory and oncology therapeutic areas. It has 80 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 approved four products so far this year — Blujepa (for uncomplicated urinary tract infection), Penmenvy (the 5-in-1 meningococcal vaccine), Nucala (for COPD) and Blenrep (relaunch in multiple myeloma). The FDA’s decision on depemokimab (for severe asthma and chronic rhinosinusitis with nasal polyps) is anticipated in December.
GSK intends to launch 15 new drugs between 2025 and 2031, each with a peak sales potential of over £2 billion.
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GSK’s Zacks Rank
GSK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.