GSK Q2 Earnings: Strong Core Growth, Pipeline Acceleration, and £1.9B Cost-Savings Plan

summarizeSummary

GSK reported strong Q2 2026 results with Core EPS up 9%, reaffirmed guidance at the upper end, and announced a £1.9 billion cost-savings programme to fund an acceleration of its late-stage pipeline, including 20+ phase III trial starts this year.

check_boxKey Events · Earnings and Guidance · GSK

• Strong Q2 Core Results

  Turnover £8.4B (+5% CER), Core operating profit £2.8B (+7% CER), Core EPS 50.5p (+9% CER). Specialty Medicines grew 14%, Vaccines 8%, offsetting a 9% decline in General Medicines.

• 2026 Guidance Reaffirmed at Upper End

  Turnover growth now expected at the upper half of 3-5%, Core operating profit at the upper half of 7-9%, and Core EPS at the lower half of 7-9%, reflecting higher R&D investment and interest costs.

• Accelerate Growth Programme Launched

  A 3-year programme targeting £1.9B in annual savings by 2029, with total costs of £2.4B (£2.1B cash). Savings will primarily be reinvested in R&D and the late-stage pipeline, with some used to improve margins during the dolutegravir loss of exclusivity period (2028-2030).

• Pipeline Acceleration: 20+ Phase III Starts in 2026

  GSK now expects to start more than 20 phase III trials in 2026 (previously 10), driven by asset accelerations across 18 indications in Oncology, Respiratory, Hepatology, and Vaccines. Key assets include Ris-Rez, Mo-Rez, efimosfermin, and depemokimab.

auto_awesomeAnalysis · GSK · Life Sciences

GSK delivered a strong Q2 with Core operating profit up 7% and Core EPS up 9%, driven by Specialty Medicines and Vaccines. The company reaffirmed 2026 guidance at the upper half of ranges and launched an 'Accelerate Growth' programme targeting £1.9 billion in annual savings by 2029 to fund a doubling of phase III trial starts to 20+ this year. The quarter also included a £1.3 billion impairment on camlipixant and a £371 million charge from terminating the Alector collaboration, but these non-cash items were offset by divestment gains. The recently closed $10.6 billion Nuvalent acquisition adds two late-stage lung cancer assets, with Jideytro already FDA-approved. The combination of strong operational momentum, a major cost-savings plan to protect margins through the dolutegravir patent cliff, and an accelerating pipeline makes this a thesis-affirming update.