GlaxoSmithKline Plc (NYSE:GSK), one of the leading pharmaceutical companies based in the United Kingdom, experienced a notable rise in its stock value Wednesday following the release of its fourth-quarter earnings report. The company reported a core earnings per share (EPS) figure of 68 cents (equivalent to 25.5 pence), surpassing analysts' expectations which had estimated EPS at 64 cents.
This result represents a 10% increase in earnings or 14% when adjusted for constant currency effects, highlighting solid underlying business growth despite currency fluctuations. Additionally, GSK's stock was trading above its 52-week range, which lies between $32.38 and $53.38, signaling strong investor confidence in response to the results.
For the fourth quarter, GSK's total sales revenue reached $11.46 billion, or 8.62 billion British pounds. This figure marks an 8% increase adjusted for constant currency, also exceeding the estimate of $11.19 billion as forecast by market analysts. The positive sales performance reflects strength in multiple segments of GSK’s portfolio.
Vaccines saw a modest rise, with sales increasing 4% overall on a reported and constant currency basis to 2.29 billion pounds. This growth derives primarily from robust demand outside the United States for vaccines such as Shingrix, Arexvy, and the meningitis vaccine. However, the vaccine segment faced some headwinds due to reduced demand within the U.S. for Shingrix, Arexvy, and Influenza vaccines, along with declining international sales of established vaccines. Notably, sales of the Shingrix vaccine in China grew during the quarter, contributing positively to the segment’s performance.
Within the vaccine product lines, Shingrix recorded a 20% sales uplift reaching 1.01 billion pounds, while Arexvy sales increased by 25% to 198 million pounds. Sales of the meningitis vaccine rose by 6% to 313 million pounds. On the contrary, established vaccines posted lower sales at 694 million pounds, showing a 14% decline on a reported basis and 13% decline on a constant currency basis.
The specialty medicines business demonstrated particularly strong momentum, with a 15% increase reported and an 18% rise after currency adjustments, totaling 3.81 billion pounds in the quarter. Conversely, the general medicines unit experienced a slight contraction, reporting a 3% decrease (1% at constant currency) down to 2.52 billion pounds in sales.
Luke Miels, CEO of GSK, emphasized the company's robust operational delivery across key therapeutic areas. He noted, "GSK delivered another strong performance in 2025, driven mainly by Specialty Medicines, with double-digit sales growth in Respiratory, Immunology & Inflammation (RI&I), Oncology and HIV.”
Demonstrating confidence in the company’s continued performance, GSK’s board declared a fourth interim dividend of 18 pence per share payable for the fourth quarter of 2025, which is an increase compared to the 16 pence per share distributed the previous year.
Looking forward, GSK provided guidance projecting that the positive momentum experienced in 2025 will carry forward into 2026. The company identifies 2026 as a critical year for execution and operational delivery, with significant focus on commercial launches and accelerating research and development efforts. CEO Miels remarked, "We are well placed to move forward in this next phase for GSK – to deliver our outlooks – and to create new value for patients and shareholders.”
The company anticipates full-year fiscal 2026 sales to grow between 3% and 5%. Specialty Medicines is expected to continue its receiving double-digit growth in sales, whereas vaccines and general medicines segments are forecasted to experience slight declines or remain stable, with a low single-digit drop anticipated. GSK also projects core operating profit and earnings per share to rise between 7% and 9% in 2026.
For the longer term, GSK envisions sales exceeding 40 billion pounds by fiscal 2031, indicating a strategy focused on sustained growth driven by innovation and market expansion.
Following these results and outlook, GSK shares traded 4.07% higher at $55.51 in premarket activity on Wednesday, achieving a new 52-week high according to market data providers. This increase underscores strong market reception to the company’s earnings and strategic plans.
Key Points
- GSK reported Q4 core earnings of 68 cents per share, exceeding analyst projection of 64 cents.
- Total fourth-quarter sales reached $11.46 billion, an 8% increase on a constant currency basis and above expectations.
- Specialty medicines sales rose 15% (18% cc), driven by growth in Respiratory, Immunology & Inflammation, Oncology, and HIV.
- Vaccine sales grew 4%, fueled by strong demand abroad for Shingrix, Arexvy, and Meningitis vaccines despite some weakness in U.S. and established vaccines sales.
Risks and Uncertainties
- Declining demand within the U.S. for key vaccines such as Shingrix, Arexvy, and Influenza could weigh on vaccine revenue growth.
- Reduced international sales of established vaccines negatively impacted overall vaccine sales.
- Slight reduction in general medicines revenue highlights potential challenges in that segment’s performance.
- Currency fluctuations pose ongoing risk to reported financial results despite adjustments.