GSK – Q2 Results

GSK delivers strong Q2 core results performance and continued momentum

Plans announced to accelerate R&D and late-stage pipeline portfolio

Expect 20+ phase III trial starts in 2026

Strong Specialty Medicines and Vaccines performance drives sales and core operating profit growth

• Total Q2 sales £8.4 billion +5% AER; +5% CER
• Specialty Medicines sales £3.8 billion (+14%); Respiratory, Immunology & Inflammation £1.1 billion (+19%); Oncology £0.6 billion (+17%); HIV sales £2.1 billion (+10%)
• Vaccines sales £2.3 billion (+8%); Shingrix £0.9 billion (+3%); Meningitis vaccines £0.5 billion (+21%); and Arexvy £0.2 billion (+>100%)
• General Medicines sales £2.3 billion (-9%); Trelegy £0.8 billion (-7%)
• Total operating profit -75% and Total EPS -69% driven by higher impairments, primarily related to camlipixant of £1.3 billion, and higher CCL charges, partly offset by Core operating profit growth and higher divestment income
• Core operating profit +7% and Core EPS +9% reflecting higher sales and favourable product and regional mix, partly offset by increased investment in R&D and new asset launches and lower royalty income
• Cash generated from operations of £2.9 billion with free cash flow of £2.0 billion
• (Financial Performance – Q2 2026 results unless otherwise stated, growth % and commentary at CER as defined on page 50. The year to date adverse currency impact on AER versus CER primarily reflected the strengthening of Sterling against the USD. See page 9 for further details.)

	Q2 2026			Year to Date
	£m	% AER	% CER	£m	% AER	% CER
Turnover	8,409	5	5	16,038	3	5
Total Operating Profit	481	(76)	(75)	2,774	(35)	(31)
Total Operating Margin %	5.7%	(19.6ppts)	(19.3ppts)	17.3%	(10.0ppts)	(9.3ppts)
Total EPS	10.8p	(69)	(69)	54.1p	(28)	(24)
Core Operating Profit	2,800	6	7	5,450	6	8
Core Operating Margin %	33.3%	0.4ppts	0.6ppts	34.0%	0.7ppts	1.2ppts
Core EPS	50.5p	9	9	97.1p	6	9
Cash Generated from Operations	2,906	19		4,256	14

Pipeline progress:

• Two late-stage medicines for non-small cell lung cancer acquired: Jideytro (FDA approval) & neladalkib (PDUFA H2 2026)
• Positive phase III Hansoh China data for Ris-Rez in lung cancer – first positive phase III overall survival data reported for a B7-H3 targeted ADC in any tumour type
• Positive data (AZUR-1) supports regulatory reviews for use of Jemperli in treatment of advanced rectal cancer
• Momelotinib (Ojjaara) granted Orphan Drug Designations in US and EU for VEXAS syndrome
• Pivotal data demonstrates unprecedented functional cure rates for bepirovirsen (chronic hepatitis B)
• Arexvy expanded approval in Japan for adults aged 18-59 at increased risk of RSV
• Decision not to progress further development of camlipixant in RCC following CALM-1/2 phase III results

R&D acceleration:

• 62 assets in clinical development with opportunities for significant growth
• 7 asset accelerations – across 18 indications – identified in: Oncology, Respiratory, Hepatology & Vaccines
• Now expect 20+ phase III trial starts in 2026 (previously 10)
• New flagship R&D Centre to be established in Cambridge Biomedical Campus, UK
• 3-year programme to fund investment in late-stage portfolio and to improve operating margin with £1.9 billion annual savings targeted by 2029 for costs of £2.4 billion (£2.1 billion cash costs)

Growth outlooks:

• 2026 guidance reaffirmed with expected growth in: turnover 3% to 5%; Core OP 7% to 9%; Core EPS 7% to 9%
• On track for 2031 sales outlook of more than £40 billion; Accelerating growth from 2031 onwards
• Operating margin stable to improving through dolutegravir loss of exclusivity period of 2028-2030

Shareholder returns:

• Q2 2026 dividend of 17p declared; 70p expected for full year 2026
• Completed £2 billion share buyback programme as announced at FY 2024 

Guidance all at CER. The Total results are presented in summary above and on page 8 and Core results reconciliations are presented on pages 16 and 18. Core results are a non-IFRS measure that may be considered in addition to, but not as a substitute for, or superior to, information presented in accordance with IFRS. The following terms are defined on pages 50-51: Core results, AER% growth, CER% growth and other non-IFRS measures. GSK provides guidance on a Core results basis only for the reasons set out on page 14. All expectations, guidance and outlooks regarding future performance and dividend payments should be read together with ‘Guidance and outlooks, assumptions and cautionary statements’ on pages 52-53. Abbreviations are defined on page 57.

This announcement contains inside information.

Luke Miels, Chief Executive Officer, GSK: “GSK has delivered another quarter of strong core results performance, with our key growth drivers performing well. We remain focused on operational delivery, execution, and accelerating R&D.To that end, we have identified late-stage pipeline accelerations – across 18 indications – for 7 key assets in Oncology, Respiratory, Hepatology and Vaccines. Based on clinical data, and their opportunities to improve upon current standards-of-care, we see strong reasons for all these assets to bring meaningful benefits and protection to patients. We have also decided to establish a new flagship R&D Centre on the UK’s Cambridge Biomedical Campus – an investment that will further integrate GSK into one of the world’s leading ecosystems for life-sciences.To fund investment in the late-stage portfolio and R&D, we are starting a 3-year cost savings programme to simplify the organisation and to reallocate capital and resources. Savings will primarily be reinvested, with some used to improve margins and profitability in the dolutegravir patent expiry period (2028-2030).We believe these plans, together with continued disciplined capital allocation, will drive strong operational performance and shareholder returns over the next five years, delivering our 2031 sales outlook and accelerated long-term growth.”

2026 Guidance

GSK reaffirms its full-year 2026 guidance at constant exchange rates (CER), with further specificity provided below.

Guidance	Updated 2026 guidance at CER	Previous 2026 guidance at CER
Turnover	Increase between 3% to 5%, at the upper half of the range	Increase between 3% to 5%
Core operating profit	Increase between 7% to 9%, at the upper half of the range	Increase between 7% to 9%
Core earnings per share	Increase between 7% to 9%, at the lower half of the range	Increase between 7% to 9%

This guidance is supported by the following turnover expectations for full-year 2026 at CER.

Turnover expectations	New 2026 guidance at CER	Previous 2026 guidance at CER
Specialty Medicines	Increase at a low double-digit percentage	Increase at a low double-digit percentage
Vaccines	Broadly stable to an increase at a low single-digit percentage	Decline of a low single-digit percentage to broadly stable
General Medicines	Decline of a mid-single digit to low single-digit percentage	Decline of a low single-digit percentage to broadly stable

Core operating profit is expected to grow at the upper half of the range between 7 to 9 per cent at CER. GSK continues to expect to deliver leverage at a gross margin level due to improved product mix from Specialty Medicines growth and continued operational efficiencies. In addition, GSK anticipates further leverage in Operating profit as we accelerate ongoing productivity initiatives and take a returns-based approach to SG&A investments, with SG&A now expected to be broadly stable. R&D is now expected to grow significantly ahead of sales as we accelerate investments in the pipeline as part of the Accelerate Growth programme while driving operational efficiencies. Royalty income is now expected to be at £850-900 million.

Core earnings per share is also expected to increase at the lower half of the range between 7 to 9 per cent at CER, reflecting higher interest charges of around £800 million, including the impact of the Nuvalent acquisition, and the tax rate which is expected to rise to around 17.5%, offset by the expected benefit from the share buyback programme. Expectations for non-controlling interests remain unchanged relative to 2025.

Agreement with US Government to lower the cost of prescription medicines for American patients

As previously announced, on 19 December 2025, GSK entered into an agreement with the US Administration to lower the cost of prescription medicines for American patients, which, once fully implemented, would exclude both GSK and ViiV Healthcare from Section 232 tariffs for three years. On 9 April 2026, GSK, ViiV Healthcare, and the US Government entered into a definitive agreement reflecting Section 232 tariff relief through 20 January 2029 (subject to final implementation). As part of that implementation, GSK and ViiV Healthcare each signed a Generous Model Manufacturer Participation Agreement with the Centers for Medicare and Medicaid Services effective 15 June 2026. With these agreements GSK and ViiV Healthcare have committed certain products to participate in the voluntary Generous Model, and it is anticipated that supplemental rebate agreements with interested US states will be signed on or before 1 October 2026. Our full year guidance is inclusive of the expected impact of these agreements.

Investing in late-stage product portfolio and Accelerate Growth programme

GSK has 62 assets in clinical development, 19 of which are in phase III development.

The company has strong confidence in its late-stage product portfolio, based on clinical data and the opportunities it has identified to improve upon current standards-of-care. GSK has potential best-in-class products for Oncology, Respiratory, Hepatology, HIV and Vaccines.

Following review, the company has identified asset accelerations – across 18 indications – for 7 late-stage products in Oncology, Respiratory, Hepatology and Vaccines. GSK now also expects to start 20+ phase III trials in 2026 (previously 10).

To accelerate R&D and capture the growth and value the late-stage portfolio offers, GSK has initiated a new “Accelerate Growth” programme. This 3-year programme has two objectives:

(1) Simplify, and match GSK’s organisation and cost base to its evolving product portfolio, notably in Specialty Medicines

(2) Enable the reallocation of GSK’s capital and resources to the late-stage pipeline and to R&D.

The Accelerate Growth programme is targeting £1.9 billion of annual savings, to be fully realised by 2029, for expected total costs of £2.4 billion, of which £2.1 billion is expected to be cash costs. Savings will be primarily reinvested in R&D, including business development activity, with a portion also used to strengthen operating margin in the period related to LoE for dolutegravir (2028-2030). The Accelerate Growth programme will be treated as a Major restructuring programme and costs will be included in Adjusting items. The majority of the cost charges will be in 2026 and 2027.

Cost savings are expected to be enabled by technology and AI and generated by streamlining support services and process redesign including procurement delivery, the reallocation of resources to Specialty Medicines from established products and further simplification of supply chain and the site network to align with portfolio evolution.

The programme, together with delivery of the opportunities in GSK’s late-stage product portfolio, strengthens GSK’s outlooks for growth of: sales of more than £40 billion by 2031; a stable to improving operating margin for the dolutegravir LoE period (2028-2030); and for accelerating growth from 2031 onwards.

Dividend policy

The Dividend policy and the expected pay-out ratio remain unchanged. Consistent with this, GSK has declared a dividend for Q2 2026 of 17p per share. GSK’s future dividend policy and guidance regarding the expected dividend pay-out in 2026 are provided on page 30.

In Q2 2026, GSK completed the £2 billion share buyback programme announced in FY 2024.

Exchange rates

If exchange rates were to hold at the closing rates on 20 July 2026 ($1.35/£1, €1.18/£1 and Yen 219/£1) for the rest of 2026, the estimated impact on 2026 Sterling turnover growth for GSK would be -2% and if exchange gains or losses were recognised at the same level as in 2025, the estimated impact on 2026 Sterling Core Operating Profit growth for GSK would be -4%.

Results presentation

A conference call, webcast and in-person event for investors and analysts of the quarterly results will be hosted by Luke Miels, CEO, at 14:00 BST (09:00 EST) on 28 July 2026. Presentation materials will be published on www.gsk.com and a transcript of the webcast will be published subsequently.

Notwithstanding the inclusion of weblinks, information available on the company’s website, or from non GSK sources, is not incorporated by reference into this Results Announcement.