GSK plc (GSK Quick QuoteGSK - Free Report) reported first-quarter 2026 core earnings of $1.26 per American depositary share (ADS), which beat the Zacks Consensus Estimate of $1.16. Core earnings rose 4% year over year on a reported basis and 9% at a constant exchange rate (CER), driven by higher sales turnover, favorable product mix and higher royalty income during the quarter.

Quarterly revenues rose 2% on a reported basis and 5% at CER to $10.30 billion (£7.63 billion). This upside was attributed to the rising sales of its HIV, oncology and respiratory medicines. The top line also beat the Zacks Consensus Estimate of $10.19 billion.

All growth rates mentioned below are on a year-over-year basis and at CER.

GSK’s Q1 Segmental Discussion

GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines increased 14%, the Vaccine segment rose 4%. Sales in the General Medicines segment, however, declined 6% on a year-over-year basis.

GSK’s Specialty Medicines Aid Top Line

HIV Sales

HIV sales rose 10% in the first quarter of 2026, driven by an increase in patient demand for Dovato as well as long-acting medications, Apretude and Cabenuva. Sales in the quarter also benefited from favorable pricing due to channel mix, which offset the impact of regional pricing pressures.

GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising two-drug regimens — Dovato and J&J (JNJ Quick QuoteJNJ - Free Report) -partnered Juluca — and three-drug regimens — Triumeq and Tivicay.

Dovato sales rose 20%, while those of the J&J-partnered Juluca declined 3%.

Tivicay sales rose 2% during the quarter, while those of Triumeq fell 27%.

Sales of Apretude and Cabenuva rose 44% and 31%, respectively. These two long-acting medicines currently account for more than a quarter of HIV sales.

Oncology Sales

Oncology sales rose 28%, driven by strong demand for Jemperli, Ojjaara/Omjjara and Blenrep.

Jemperli sales rose 40% during the first 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.

Sales of the blood cancer drug Ojjaara/Omjjara rose 34%, primarily driven by strong patient uptake and continued commercial launches across Europe and international markets. U.S. volume growth was partly offset by ongoing pricing pressures.

Zejula sales fell 11% in the quarter due to increased competition in Europe and significant volume reduction in the United States.

Respiratory, Immunology & Inflammation Sales

Respiratory, Immunology & Inflammation sales increased 16%, driven by Nucala and Exdensur in respiratory and Benlysta in immunology.

Sales of the respiratory drug Nucala were up 12% during the quarter, mainly driven by strong performance across all markets, especially the United States, where the drug recently received label expansion in the COPD indication. This upside was partially offset by continued pricing pressures and channel mix impacts.

Sales of the immuno-inflammation drug Benlysta were up 13% in the quarter, reflecting strong product demand across all marketed territories.

GSK’s Vaccine Sales Up

In Vaccines, sales growth was mainly driven by increased uptake of shingles vaccines in Europe, partly offset by lower sales of Other Paediatric & Adult vaccines.

Sales of the company’s shingles vaccine, Shingrix, rose 20% during the quarter, driven by strong growth, especially in Europe and the United States, as well as favorable channel inventory movement. Lower sales in international markets partially offset this growth.

In Meningitis vaccines, sales of Bexsero rose 5%, while Menveo sales were down 25%. Sales of the RSV vaccine, Arexvy, plunged 18% during the quarter, due to slower market demand in the United States.

Influenza vaccine sales rose more than 100% during the quarter.

Sales of Other Paediatric & Adult vaccines (previously known as Established vaccines) fell 9%, owing to competitive pressure for Synflorix, primarily in Emerging Markets and lower sales for Hepatitis, Boostrix and Infanrix/Pediarix vaccines in the United States and international markets.

GSK’s General Medicines Fall

In this segment, Anoro Ellipta sales increased 2%, while sales of Relvar/Breo Ellipta declined 12%. Ventolin sales declined 19%.

While Advair/Seretide sales declined 11%, sales of Flixotide/Flovent increased 35%.

Trelegy Ellipta was flat year over year during the quarter. U.S. sales declined due to Medicare benefit design changes and unfavorable pricing and channel mix. Strong volume growth in Europe and international markets was driven by patient demand.

Operating Expenses

Core selling, general and administration costs declined 2% to £1.98 billion, driven by ongoing productivity initiatives and net legal settlements and expenses.

Core research and development expenses rose 12% to £1.49 billion. This uptick highlights the company’s continued investment in pipeline development.

GSK Maintains 2026 Guidance

GSK reiterated its total revenue guidance for 2026, which it had provided earlier this year. The company continues to expect sales to increase 3-5% during the year.

GSK expects sales of Specialty Medicines to increase by a low double-digit percentage at CER in 2026. However, management forecasts sales across the General Medicines and Vaccines franchises to either decline by a low single-digit percentage or remain broadly stable.

GSK expects both core operating profit and core EPS to grow in the range of 7-9%.

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%.

Our Take on GSK’s Results

GSK reported better-than-expected first-quarter results, driven by strong demand for its Specialty Medicines portfolio. Growth in the Vaccines business also helped offset weaker sales in the General Medicines segment. Although U.S. sales were partly impacted by continued pricing pressures from the Medicare Part D redesign, softer demand for Arexvy, and flat sales of Trelegy Ellipta, these headwinds were more than offset by higher demand for other products, including Dovato, Cabenuva, Apretude, Jemperli, Ojjaara/Omjjara and Nucala.

GSK maintained its outlook for full-year 2026. The company also reiterated its outlook for 2031, expecting to generate sales of more than £40 billion.

Despite the better-than-expected results, shares of GSK were trading down in pre-market today.

The stock has increased 11% year to date against the industry’s decline of 1.6%.

Image Source: Zacks Investment Research

In 2026, GSK expects two major product approvals — Ionis Pharmaceuticals (IONS Quick QuoteIONS - Free Report) -partnered bepirovirsen for chronic hepatitis B and Spero Therapeutics (SPRO Quick QuoteSPRO - Free Report) -partnered tebipenem for complicated urinary tract infections. Tebipenem and bepirovirsen are currently under review in the United States, with a decision expected in the first half and second half of 2026, respectively.

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.