Shares of pharmaceutical firm GSK fell by around 4% this morning despite the FTSE 100 company beating third-quarter earnings expectations, as investors focused on weaker vaccine sales and restructuring costs against strong demand for specialty medicines.

GSK reported a 5% rise in sales at constant exchange rates to £8.9bn and reaffirmed its full-year guidance. Core operating profit increased 5% to £3.08bn, while core earnings per share rose 1% to 54.6p, ahead of analysts’ expectations.

However, reported operating profit fell 16% to £2.13bn, partly reflecting £328m of restructuring charges associated with its Accelerate Growth programme.

Specialty medicines were the main growth driver, with sales up 15% to £3.9bn. HIV medicines revenue rose 10% to £2.1bn, respiratory, immunology and inflammation treatments increased 21% to £1.1bn, and oncology sales jumped 23% to £600m.

Vaccines sales fell 2% to £2.6bn, including a 5% decline in Shingrix revenue to £800m, although meningitis vaccines grew 12% to £600m. General medicines sales were unchanged at £2.4bn, with Trelegy revenue up 8% to £800m.

CEO Luke Miels said: “GSK has delivered another strong quarter, with our key growth drivers and new launches performing well. We remain focused on operational delivery, execution and accelerating R&D.

"Over recent months we have received 3 new specialty medicine approvals in the US: Hibsago, which has the potential to transform the treatment of chronic hepatitis B; Jideytro in non-small cell lung cancer; and Jemperli in rectal cancer. More broadly, in the late-stage portfolio, we are on track to start 22 phase III trials this year.”

GSK maintained its 2026 guidance, expecting turnover growth of 3% to 5% and core operating profit growth of 7% to 9%, both towards the upper half of their respective ranges. Core earnings per share growth is expected towards the lower half of the 7% to 9% range. The group also reiterated its target of generating more than £40bn in annual sales by 2031.

Investors remain focused on GSK’s ability to replenish its drug pipeline ahead of future patent expiries, including those affecting HIV treatments from 2028 to 2030. Its restructuring programme is intended to fund investment in research and development and accelerate the launch of new medicines.

Keith Bowman, equity analyst at interactive investor, said: “GSK has today delivered above forecast adjusted earnings, although headline profits fell due to cost saving initiatives and restructuring costs.

"More favourably, GSK’s push to accelerate growth under relatively new CEO Luke Miels continues, with accelerated drug development funded from cost cuts. Acquisitions are expected to aid sales and profits going forward. A deal with the US government regarding drug sale prices and trade tariffs was previously agreed, while developments in AI could reduce R&D spend and accelerate new drug discovery.

For now, and while GSK remains a work in progress, ongoing management confidence in achieving sales of more than £40bn by 2031 versus £32.7bn in 2025 leaves City consensus opinion pointing towards a strong hold.”

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