GSK PLC
(LSE:GSK)
£
19.32
-0.085 (-0.44%)
Market Cap: 77.39 Bil
Enterprise Value: 92.06 Bil
PE Ratio: 16.37
PB Ratio: 4.39
GF Score: 82/100 
Q2 2026 GSK plc Earnings Call Transcript
Jul 28, 2026 / 01:00PM GMT
Release Date Price:
£20.29
(+3.47%)
Key Points
Positve
- GSK PLC (GSK) reported strong Q2 2026 performance with sales up 5% to over GBP8.4 billion and core operating profit growing 7%, driven by Specialty Medicines and Vaccines.
- The company is accelerating its late-stage pipeline with over 20 Phase III starts planned for 2026, more than double initial expectations, across key therapy areas like oncology and respiratory.
- GSK PLC (GSK) announced a new 'Accelerate Growth' program targeting GBP1.9 billion in annual cost savings by 2029, which will be reallocated to fund R&D and strengthen margins through the dolutegravir LOE period.
- The HIV business continues to outperform, with sales growing 10% in Q2, driven by long-acting injectables like Cabenuva, leading to an upgraded 2026 sales growth guidance to high single digits.
- The oncology pipeline is advancing rapidly with key assets like the ADCs Mo-rez and Ris-rez, and the recently acquired Nuvalent assets (Jideytro and Neladalkib) showing best-in-class potential in lung cancer.
- GSK PLC (GSK) is investing in expanding indications for key products, such as starting a Phase III trial for Shingrix to potentially prove a causal link to reducing major adverse cardiovascular events (MACE).
- The company's long-acting respiratory portfolio is expanding with the launch of Exdensur and the acceleration of an ultra-long-acting TSLP program (GSK'283) into Phase III for asthma, COPD, and nasal polyps.
- GSK PLC (GSK) has a strong balance sheet and cash generation, with GBP4.3 billion in cash from operations in H1 2026, providing capacity for both business development and shareholder returns.
- The company is making structural changes to R&D, including relocating to the Cambridge Biomedical Campus, to improve innovation and collaboration with top academic and biotech partners.
- GSK PLC (GSK) is seeing strong commercial execution for new launches, with Blenrep leading new patient starts in second-line multiple myeloma in the UK and Nucala gaining significant share in the COPD market.
Negative
- General Medicines sales declined 9% in Q2, impacted by pricing pressure on Trelegy in the US and a softer inhaled respiratory market, leading to a downgraded full-year outlook for the segment.
- The company's full-year 2026 EPS guidance was lowered to the lower half of the range, primarily due to additional interest costs of around GBP160 million from the Nuvalent acquisition.
- GSK PLC (GSK) reported a significant impairment charge for Camlipixant following the failure of the CALM-2 study in chronic cough, highlighting the risks in its pipeline.
- The company faces a challenging transition period from 2028-2030 due to the loss of exclusivity for dolutegravir, a key HIV drug, which will pressure revenue and margins.
- R&D expenses grew in double digits in Q2, driven by accelerated pipeline investment, and the company expects R&D to continue growing faster than sales, pressuring near-term margins.
- The company's guidance for 2026 operating profit growth is expected to be significantly Q4 weighted due to phasing of costs, including Nuvalent consolidation and a tough tax comparator in Q3.
- The competitive landscape in key areas like COPD and HIV remains intense, with rivals like Gilead and Merck advancing their own long-acting therapies and oral options.
- The company acknowledged that its early-stage R&D output needs improvement, and the benefits from its new R&D structure and relocation to Cambridge will take time to materialize.
- GSK PLC (GSK) faces ongoing pricing and access challenges in the US market, particularly for its mature General Medicines portfolio and newer products like Trelegy.
- The success of several key pipeline assets, such as the IL-33 program and the B7-H3 ADC Ris-rez, is still unproven in late-stage trials, carrying significant clinical and commercial risk.
Operator
Good afternoon, and welcome to this GSK Q2 Results and Accelerate Growth Event. Today, we look forward to having a good event. And if we could have the agenda slide on the screen, please. Just a few words on logistics before I hand over to Luke.
The first thing is that we have a Q&A session for you planned at 2:45 and another one then at 4:20. After the first Q&A, you will have a short break, and the event is planned to end around 5:00 PM.
Next slide, please. Also note the legal disclaimer on our cautionary statement regarding forward-looking statements. And I would like to add that any definitions in terms of our reporting as well as assumptions on accelerated growth can be found at the end of this deck.
Lastly, if we comment on performance, any of these comments will be made at constant currency or CER, unless otherwise stated.
And with this, I'm delighted to hand over to Luke.
Luke Miels
GSK plc - Chief Executive Officer, Executive Director
Thank you. Welcome, everyone, and thanks for investing your time here
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