GSK reported first-quarter profits above expectations on Wednesday, but the market wasn’t entirely impressed. The stock dropped around 3% after the results landed, as investors dug into the details.
$GSK Q1 core operating profit rose to £2.65B, above the £2.46B consensus, as specialty medicine sales lifted results. Revenue increased 5% to £7.63B, topping estimates, and the company kept its 2026 outlook for 3% to 5% sales growth and 7% to 9% core profit and EPS growth.
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Core operating profit for the three months ended March 31 rose 10% at constant exchange rates to £2.65 billion, well ahead of the company-compiled consensus of £2.46 billion. Core EPS hit 46.5 pence, up 9% year-on-year and above the 43.5 pence estimate.
But analysts at Jefferies quickly flagged that roughly half of that outperformance came from legal settlement provisions rather than underlying business performance. “Core Operating Income and Core EPS both 7% ahead of consensus, but c50% of that driven by legal settlement provisions,” the firm wrote.
Total sales rose 5% at constant exchange rates to £7.6 billion, matching consensus. That’s a solid number, but not one that moved the needle on its own.
The Specialty Medicines unit was the standout, climbing 14% to £3.2 billion. HIV treatments generated £1.8 billion, up 10%. The respiratory, immunology, and oncology portfolio grew 28% to £0.5 billion, though off a smaller base.
Vaccines brought in £2.1 billion, up 4%. Shingrix, GSK’s shingles vaccine, was the highlight — turnover jumped 20% to £1.0 billion, a record. The RSV vaccine Arexvy fell 18% to £0.1 billion, though the company pointed to seasonal patterns as the driver.
General Medicines was the weak spot, declining 6% to £2.3 billion and missing estimates by 3%.
GSK held its 2026 guidance, still targeting turnover growth of 3% to 5% and core operating profit growth of 7% to 9%.
However, the strengthening of Sterling against the U.S. dollar is creating a headwind on reported numbers. Jefferies noted the FX drag is leaving consensus estimates at the upper end of the guided range.
GSK also announced a change to its investor communications calendar. CEO Emma Walmsley and new commercial head Luke Miels will deliver a broader strategy update alongside Q2 results, replacing a previously planned HIV-specific event.
The company declared a first-quarter dividend of 15 pence per share.
GSK stock is up 42% over the past 12 months, well ahead of both the FTSE 100 and the broader Stoxx 600.
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