GSK plc

GSK said Q3 sales were GBP 8.9 billion, up 5% year over year at constant exchange rates. Core operating profit also grew 5%, while core EPS was up 1%. Gross profit rose 7%, supported by product mix and efficiencies, and operating margin was described as broadly stable. Year to date, cash generation remained strong at GBP 7.4 billion, and cash generation from operations was GBP 1.1 billion ahead of last year; free cash flow was up GBP 1.8 billion year to date. For full year 2026, management reconfirmed guidance: sales are expected in the upper half of the range, core operating profit in the upper half, margin above 31% at constant rates, royalties around GBP 900 million, and FX headwinds of -1% on sales and -3% on operating profit. EPS growth is expected in the low half of the range, full-year interest is expected at GBP 700 million to GBP 750 million, including around GBP 160 million from Nuvalent; the company also said Accelerate Growth charges are now expected to be up to GBP 1 billion in 2026.

Luke Miels framed the quarter as evidence that GSK’s strategy is working, pointing to operational momentum, specialty-led growth, and a growing late-stage pipeline. He highlighted recent launches and approvals including Jideytro, Hibsago, and Jemperli, plus progress on Blenrep and Exdensur, and said the company is moving to accelerate R&D and simplify the cost base. His tone was confident and direct, with an emphasis on transparency and on reallocating resources toward higher-growth opportunities.

Julie Brown said the quarter showed disciplined execution alongside heavier reinvestment: sales rose 5%, gross profit 7%, SG&A rose only 1%, and R&D increased 22% as phase III activity accelerated. She said the quarter included a GBP 0.3 billion Accelerate Growth charge and that the company now expects up to GBP 1 billion of charges in 2026, while CGFO was GBP 1.1 billion ahead year to date and net debt to core EBITDA was 1.8x. She also reiterated the full-year view: sales and operating profit in the upper half of guidance, margin above 31%, royalties around GBP 900 million, and interest of GBP 700 million to GBP 750 million this year.

Analysts pressed management on whether the EXTEND 4M PrEP update could affect the four-monthly HIV treatment program, and management said the studies are different: EXTEND is a PK bridging study while CUATRO is an efficacy study, and they reiterated that there is no read-through to the treatment portfolio. They also asked about Exdensur and Blenrep launch momentum; management said the U.S. J-code and ASP documentation were key milestones for Exdensur and that the product is now seeing a change in trend, while Blenrep is still being constrained by preexisting perceptions that the company is trying to change through more peer-to-peer engagement. Questions on Shingrix focused on regional swings and future growth drivers, and management pointed to U.S. inventory effects, China destocking, and ongoing work on MACE and dementia studies, including a broad MACE study planned by year-end.