GSK Plc Q1 2026 Financial Summary
Business Context and Reporting Period
This Form 6-K summarizes GSK Plc's unaudited financial results for the three months ended March 31, 2026 (Q1 2026). The company reported a strong start to the year, driven by growth in Specialty Medicines and Vaccines, offset by declines in General Medicines. The reporting period includes the impact of the strengthening of Sterling against the USD and Yen.
Key Financial Metrics
| Metric | Q1 2026 Value | Growth (AER) | Growth (CER) |
|---|---|---|---|
| Turnover | £7.6 billion | +2% | +5% |
| Total Operating Profit | £2.3 billion | +3% | +9% |
| Total Operating Margin | 30.1% | +0.6 ppts | +1.3 ppts |
| Core Operating Profit | £2.7 billion | +5% | +10% |
| Core Operating Margin | 34.7% | +1.0 ppts | +1.8 ppts |
| Total EPS | 43.2p | +9% | +15% |
| Core EPS | 46.5p | +4% | +9% |
| Cash from Operations | £1.4 billion | +4% | N/A |
| Free Cash Flow | £0.8 billion | +17% | N/A |
| Total Net Debt | £15.6 billion | N/A | N/A |
Material Changes vs. Prior Period
- Revenue Mix: Specialty Medicines sales grew 14% (CER) to £3.2 billion, driven by HIV (+10%), Oncology (+28%), and Respiratory, Immunology & Inflammation (+16%). Vaccines sales grew 4% (CER) to £2.1 billion, led by Shingrix (+20%), though offset by declines in Arexvy (-18%) and Meningitis vaccines (-3%). General Medicines declined 6% (CER) to £2.3 billion due to generic erosion and competitive pressures.
- Profitability: Core operating profit growth was driven by higher sales, favorable product mix, and SG&A benefits, partially offset by increased R&D investment. Total operating profit included a £420 million net income from the sale of the Rockville manufacturing facility, offset by a £265 million charge related to contingent consideration liabilities (CCLs).
- Debt and Liquidity: Net debt increased to £15.6 billion from £14.5 billion at year-end 2025, primarily due to the acquisition of RAPT Therapeutics (£1.4 billion net cost), dividends paid, and share buybacks, partially offset by free cash flow.
Guidance, Outlook, and Risks
- 2026 Guidance (CER): GSK reaffirmed full-year 2026 guidance: Turnover growth of 3-5%; Core operating profit growth of 7-9%; Core EPS growth of 7-9%.
- Shareholder Returns: A Q1 dividend of 17p per share was declared (expected full year 70p). The company has executed £1.7 billion of its £2 billion share buyback programme.
- Pipeline Progress: Key developments include regulatory approvals for Exdensur (EU/China), Nucala COPD (EU), and Blenrep (China). Regulatory filings for bepirovirsen (Hepatitis B functional cure) were accepted in the US, EU, China, and Japan. Acquisitions of RAPT Therapeutics (ozureprubart) and 35Pharma (HS235) were completed.
- Risks and Contingencies:
- Tariffs: GSK entered a definitive agreement with the US Government to secure relief from Section 232 tariffs on patented pharmaceuticals through January 2029.
- Legal: Significant legal matters include the Zantac litigation (summary judgment granted in Delaware, concluding that matter) and ongoing IP disputes regarding Breo and Trelegy.
- Contingent Consideration: A £288 million charge was recorded for the remeasurement of contingent consideration liabilities related to the former Shionogi-ViiV Healthcare joint venture.
Investor Verification Checklist
- Verify the sustainability of Specialty Medicines growth, particularly the contribution of Long-Acting Injectables (LAIs) in HIV and the impact of new oncology approvals.
- Monitor the execution of the £2 billion share buyback programme and its impact on diluted EPS.
- Assess the impact of the US Section 232 tariff agreement on future margins and the "Generous Model" participation requirements.
- Review the progress of the bepirovirsen regulatory review (PDUFA date October 2026) and its potential to become a finite treatment for Hepatitis B.
- Track the integration and R&D spend related to recent acquisitions (RAPT and 35Pharma) and their impact on future revenue streams.