Key Highlights

  • GSK plc (LSE:GSK) reported third-quarter sales of £8.9 billion, up 5% at constant exchange rates, with specialty medicines up 15%.
  • Core operating profit rose 5% to £3.08 billion and core Earnings Per Share were 54.6p.
  • The company reaffirmed 2026 guidance, with sales and core operating profit growth expected in the upper half of ranges and core EPS growth in the lower half.
  • A third-quarter Dividend of 17p was declared, with 70p expected for 2026.

Why GSK Is in Focus Today

GSK plc (LSE:GSK) is drawing attention on the FTSE 100 as the market digests the US midterm elections, which handed control of both chambers of Congress to the Democrats. Healthcare policy, including drug pricing, is a long-running political issue in the United States, which is GSK's largest market. On Wednesday, 4 November 2026, the FTSE 100 rose 1.8%, but healthcare heavyweights had weighed on the index earlier in the week, keeping the sector in focus for investors.

GSK's latest results, published on 28 October, showed solid momentum in specialty medicines but softer Vaccine sales, and the shares slipped as investors noted the company kept rather than raised its guidance.

Third-Quarter Results in Detail

Turnover rose 4% at actual exchange rates and 5% at constant exchange rates to £8.89 billion. Core operating profit increased 5% at constant currency to £3.08 billion, while core earnings per share edged up 1% to 54.6p, reflecting higher research spending and finance costs. Reported operating profit fell 16% to £2.13 billion, partly due to £328 million of restructuring charges from the Accelerate Growth programme. Cash generated from operations was £3.1 billion, with free Cash Flow of £2.1 billion.

Specialty medicines were the engine of growth, with sales up 15% to £3.9 billion. HIV medicines grew 10% to £2.1 billion, led by Dovato and long-acting injectables Cabenuva and Apretude. Cabenuva grew 35%, with most US patient switches coming from rival treatments. Respiratory, immunology and inflammation sales rose 21% to £1.1 billion, and oncology Revenue jumped 23% to £600 million, helped by Jemperli. Vaccine sales declined, which weighed on sentiment.

Guidance and Dividend

GSK reaffirmed its 2026 guidance at constant exchange rates: turnover growth of 3% to 5%, toward the upper half; core operating profit growth of 7% to 9%, toward the upper half; and core earnings per share growth of 7% to 9%, toward the lower half because of higher interest costs, including around £160 million related to the Nuvalent acquisition. The company declared a third-quarter dividend of 17p, up 1p on last year, with a total of 70p expected for 2026. It remains on track for a 2031 sales outlook of more than £40 billion.

Pipeline and Leadership

Chief executive Luke Miels, who took over earlier in 2026, has focused on operational delivery and accelerating research and development. GSK is on track to start 22 phase III trials this year and has been adding to its pipeline through acquisitions. New launches, including respiratory treatment Exdensur, are gaining traction, with US new prescribers rising sharply in the third quarter.

Vaccines and Upcoming Catalysts

Vaccines remain an important but more volatile part of the business. Demand for shingles vaccine Shingrix and respiratory syncytial virus vaccine Arexvy has been affected by recommendations from US health authorities and slower uptake in some markets. Investors will watch whether vaccine sales stabilise in the fourth quarter, traditionally a key season for respiratory vaccines. On the specialty side, GSK has a series of regulatory decisions and trial readouts due over the next year, including in oncology and respiratory disease. Positive data could support the company's 2031 outlook and help offset the expected loss of exclusivity on dolutegravir-based HIV medicines in the early 2030s. Business development is also likely to continue, with management willing to acquire late-stage Assets to strengthen the pipeline.

Market Context on 4 November

The US election result could influence healthcare debates in Washington, including drug pricing and pharmaceutical tariffs, although major changes would require cooperation with the White House. A weaker dollar after the election affects GSK's reported sterling results, and the company estimated that currency would reduce 2026 sterling turnover growth by around 1% if rates held at end-September levels. The broader market rally on Wednesday supported sentiment across large-cap defensive stocks.

Risks to Consider

Risks include US pricing reforms, Patent expiries for key HIV medicines later in the decade, clinical trial setbacks, vaccine demand weakness, currency movements and litigation. Higher interest costs from acquisitions also weigh on earnings growth.

What Investors Are Watching Next

Investors will watch US policy developments after the midterms, pipeline readouts, the launch performance of new medicines and vaccine trends heading into winter. The full-year results in early 2027 will provide 2027 guidance and an update on the long-term outlook for GSK plc (LSE:GSK).