GSK plc (LSE:GSK) began 2026 with solid momentum, reporting first-quarter sales of £7.6 billion, up 5% at constant exchange rates. Growth was driven by a 14% increase in Specialty Medicines, with strong double-digit gains in HIV, respiratory, and oncology treatments. Vaccines recorded modest growth, while general medicines declined. Core operating profit rose 10% and core earnings per share increased 9%, supported by a more favorable product mix, disciplined cost management, and higher royalty income.
The company generated £0.8 billion in free cash flow during the quarter, enabling continued share buybacks and a 17p dividend. Management reaffirmed its full-year 2026 guidance, targeting low- to mid-single-digit revenue growth alongside high-single-digit expansion in core profit and earnings.
GSK also highlighted accelerating progress across its research and development pipeline. The quarter included new approvals for treatments in asthma, COPD, and multiple myeloma, as well as global regulatory filings for hepatitis B candidate bepirovirsen. The company reported breakthrough and PRIME designations for its liver disease therapy efimosfermin and outlined plans for several pivotal trial readouts and oncology studies throughout 2026. These efforts are complemented by targeted acquisitions in areas such as food allergy and pulmonary hypertension.
In addition, GSK confirmed that its 2026 outlook incorporates a new agreement with the U.S. government, which trades lower prescription drug prices for relief from potential Section 232 tariffs on patented pharmaceuticals through early 2029. This arrangement reduces a key policy risk for its U.S. business and provides greater visibility for investors.
Overall, the company’s outlook is supported by strong profitability, improving fundamentals, and continued pipeline progress. Valuation appears reasonable, with a modest dividend yield, though some caution remains due to technical indicators suggesting overbought conditions and ongoing considerations around balance sheet strength and earnings consistency.
More about GlaxoSmithKline
GSK plc is a global biopharmaceutical company focused on developing and commercialising specialty medicines, vaccines, and general pharmaceuticals. It holds strong positions in key therapeutic areas including respiratory, HIV, oncology, and vaccines such as shingles and meningitis. The company aims to drive growth through higher-margin specialty products while managing a more mature general medicines portfolio across major global markets.
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