Business Context and Reporting Period
Company: GSK plc
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Full Year 2025 and Fourth Quarter (Q4) 2025
Date of Filing: February 4, 2026
Overview: GSK reported strong 2025 performance driven by double-digit growth in Specialty Medicines (HIV, Oncology, Respiratory, Immunology & Inflammation). The company reaffirmed its long-term outlooks and 2031 sales target of over £40 billion.
Key Financial Metrics
| Metric | Full Year 2025 (£m) | Full Year 2024 (£m) | Growth (CER%) | Q4 2025 (£m) | Q4 2024 (£m) | Q4 Growth (CER%) |
|---|---|---|---|---|---|---|
| Turnover | 32,667 | 31,376 | +7% | 8,618 | 8,117 | +8% |
| Total Operating Profit | 7,932 | 4,021 | >100% | 1,100 | 696 | +65% |
| Total Operating Margin | 24.3% | 12.8% | +11.9 ppts | 12.8% | 8.6% | +4.6 ppts |
| Core Operating Profit | 9,783 | 9,148 | +11% | 1,634 | 1,431 | +18% |
| Core EPS | 172.0p | 159.3p | +12% | 25.5p | 23.2p | +14% |
| Total EPS | 141.1p | 63.2p | >100% | 15.8p | 10.1p | +65% |
| Cash from Operations | 8,943 | 7,861 | +14% | 2,689 | 2,586 | +4% |
| Free Cash Flow | 4,029 | 2,863 | +41% | 960 | 924 | +4% |
| Total Net Debt | 14,453 | 13,095 | - | 14,453 | 13,095 | - |
Note: Growth percentages are presented at Constant Exchange Rates (CER) unless otherwise noted. Actual Exchange Rate (AER) growth was lower due to Sterling strengthening against the USD.
Material Changes vs. Prior Period
- Profit Surge: Total Operating Profit and EPS more than doubled year-over-year. This was primarily driven by the absence of the £1.8 billion Zantac legal charge incurred in Q3 2024, lower contingent consideration liability (CCL) charges, and higher other operating income, partially offset by intangible asset impairments.
- Revenue Growth: Specialty Medicines sales grew 17% (CER) to £13.5 billion, led by HIV (+11%), Oncology (+43%), and Respiratory, Immunology & Inflammation (+18%). Vaccines sales grew 2% (CER) to £9.2 billion. General Medicines declined 1% (CER) to £10.0 billion.
- Key Product Performance:
- HIV: Long-acting medicines (Cabenuva, Apretude) contributed over 75% of HIV growth.
- Oncology: Jemperli sales grew 89% (CER) and Ojjaara/Omjjara grew 60% (CER), offsetting a decline in Zejula.
- Vaccines: Shingrix sales grew 8% (CER) driven by ex-US demand, while US sales declined 17% due to market saturation.
- Balance Sheet: Net debt increased by £1.36 billion to £14.45 billion, driven by acquisitions (IDRx, BP Asset IX), dividends, and share buybacks, partially offset by strong free cash flow.
Guidance, Outlook, and Risks
2026 Guidance (at CER)
- Turnover Growth: 3% to 5%
- Core Operating Profit Growth: 7% to 9%
- Core EPS Growth: 7% to 9%
- Dividend: Expected full-year 2026 dividend of 70p per share.
Management Commentary
CEO Luke Miels highlighted strong momentum in Specialty Medicines and R&D progress, including 5 major FDA approvals in 2025. The company expects 2026 to be a key year for commercial launches and accelerating R&D.
Risks and Contingencies
- Legal Proceedings: Ongoing Zantac litigation (13 state court cases remain; Federal MDL appeal decision expected H1 2026). Avandia class certification appeal scheduled for February 2026. New litigation initiated against AnaptysBio regarding Jemperli collaboration.
- Regulatory & Pricing: Impact of US Inflation Reduction Act (IRA) Medicare Part D redesign on pricing. Potential generic competition for Trelegy and Breo (Paragraph IV letters received).
- Acquisitions: Pending acquisition of RAPT Therapeutics (ozureprubart) for ~$2.2 billion, expected to close Q1 2026.
- US Government Agreement: Entered into an agreement in December 2025 to lower prescription costs, excluding GSK and ViiV from Section 232 tariffs for 3 years.
Investor Verification Checklist
- Legal Exposure: Monitor the outcome of the Zantac Federal MDL appeal and the Avandia class certification appeal in early 2026.
- Acquisition Integration: Verify the closing and integration costs of the RAPT Therapeutics and IDRx/BP Asset IX acquisitions.
- Pipeline Milestones: Track regulatory decisions for bepirovirsen (Hepatitis B) and tebipenem (UTIs) expected in 2026.
- Shareholder Returns: Confirm execution of the £2 billion share buyback programme and the 70p dividend payout for 2026.
- US Pricing Pressure: Assess the long-term impact of the IRA Medicare Part D redesign on Specialty Medicines margins.