GSK lifts full-year guidance as Q3 profit more than doubles; shares jump 3%

Investing.com -- GSK Plc (LON:GSK) raised its full-year 2025 guidance after a strong third quarter, sending shares up over 3% on Wednesday as profit and earnings surged on strength in Specialty Medicines and Vaccines.

The London-based biopharmaceutical company said total sales for the quarter reached £8.5 billion, up 7% at actual exchange rates and 8% at constant exchange rates. 

Core operating profit rose 11%, and core earnings per share increased 14% to 55 pence. 

Total operating profit more than doubled from a year earlier, supported by lower legal expenses, reduced contingent consideration charges and higher other operating income.

Specialty Medicines led the quarter with £3.4 billion in sales, up 16%. HIV medicines contributed £1.9 billion, a 12% increase, helped by demand for Cabenuva and Apretude. 

Respiratory, Immunology and Inflammation products generated £ billion, up 15%, while Oncology climbed 39% to £511 million.

Vaccines brought in £2.7 billion, a 2% rise. Shingrix, the shingles vaccine, grew 13% to £830 million, meningitis vaccines increased 5% to £541 million, and respiratory syncytial virus vaccine Arexvy rose 36% to £251 million. 

General Medicines sales were £2.5 billion, up 4%, supported by Trelegy, which advanced 25% to £736 million.

Chief executive Emma Walmsley said the company’s momentum “continues with another quarter of strong performance, supporting upgraded guidance for 2025.” 

She added that sales “grew in all areas, with particularly strong performances in Specialty Medicines driven by double-digit growth in Respiratory Inflammation & Immunology, Oncology and HIV.” 

Walmsley also noted the company “continued to make very good progress in R&D with four FDA product approvals so far this year.”

Cash generated from operations totaled £2.5 billion, with free cash flow of £1.2 billion. GSK declared a dividend of 16 pence per share for the quarter and expects a full-year total of 64 pence. 

The company spent £1.1 billion in share repurchases during the first nine months of 2025 as part of its £2 billion buyback program.

The pharmaceutical group upgraded its 2025 outlook, forecasting turnover growth between 6% and 7%, core operating profit growth of 9% to 11%, and core earnings per share growth of 10% to 12%, all at constant exchange rates. 

Earlier guidance had forecast increases toward the upper end of 3% to 5% for turnover and 6% to 8% for profit and EPS.

By region, sales in the U.S. reached £4.5 billion, up 7% at constant exchange rates, with gains in Oncology, HIV and Benlysta. 

European revenue grew 13% to £1.9 billion, supported by Shingrix and Arexvy, while international markets rose 6% to £2.1 billion, led by demand in Japan and Canada.

GSK said four major product approvals were achieved in 2025, including Blenrep for multiple myeloma, Penmenvy for meningitis, Blujepa for urinary tract infections and Nucala for chronic obstructive pulmonary disease. A U.S. regulatory decision on depemokimab for asthma is expected in December.

“This is my final quarter reporting as CEO,” Walmsley said, adding she was “delighted to be passing the baton to Luke and to be leaving all that GSK has to offer in such good hands.”