Pharmaceutical powerhouse GSK has announced a significant uptick in profits, buoyed by robust demand for its specialized treatments for HIV and asthma. However, the company has cautioned investors about a potential slowdown in sales growth for the upcoming year. This marks the inaugural earnings report under the leadership of new CEO Luke Miels, who succeeded Emma Walmsley at the beginning of 2026.
Strong Financial Performance in 2025
For the fiscal year ending December 2025, GSK reported a turnover of £32.7 billion, reflecting a 4% increase compared to the previous year. The final quarter of 2025 saw a particularly notable growth rate of 6%. This financial performance was significantly driven by a 17% surge in sales of specialty medicines, which reached £13.5 billion. Within this segment, treatments for respiratory conditions, immunology, and inflammation experienced a remarkable 18% growth, while sales of HIV medications rose by 11%.
Miels described the company’s performance as “strong,” expressing confidence in GSK’s positioning for forthcoming advancements. He stated, “GSK delivered another strong performance in 2025, driven mainly by specialty medicines.” The company anticipates maintaining this momentum in 2026, which it has designated as a critical year for operational execution and new commercial launches.
Strategic Decisions on Weight-Loss Drugs
In a notable strategic divergence from competitors, GSK has explicitly ruled out entering the burgeoning market for weight-loss medications, particularly those related to GLP-1 therapies. This announcement comes shortly after AstraZeneca formed a partnership with a Chinese pharmaceutical firm to expand its portfolio in obesity treatments. Miels articulated the company’s rationale, noting, “It’s going to be very crowded… our focus is more on the downstream effects of obesity rather than GLP-1 products.” This approach suggests a commitment to prioritising existing strengths rather than pursuing potentially saturated markets.
Outlook for 2026 and Operational Changes
Despite the positive growth narrative, GSK has tempered expectations for the immediate future. It forecasts core operating profit growth to moderate to between 7% and 9% in 2026. Miels acknowledged this shift, stating that while the company has enjoyed strong momentum, the pace of profit growth is set to slow down. Additionally, the company recently announced a reduction of approximately 350 roles in its research and development sectors across the UK and US, with the initial cuts affecting around 50 positions in its primary R&D hub in Stevenage, Hertfordshire.
Healthcare analyst Sheena Berry from Quilter Cheviot remarked on the solid performance, noting, “This was the first full-year update under new CEO Luke Miels, and it represents a steady and credible start.” She emphasized that despite the projected moderation in growth, GSK’s leadership in vaccines and HIV treatments, combined with a clear long-term strategy, should reassure investors of its sustainable growth trajectory.
Why it Matters
GSK’s latest financial results reflect a complex interplay between strong past performance and cautious future projections. As the company navigates a rapidly evolving pharmaceutical landscape, its strategic decisions—especially regarding product focus and operational restructuring—will be critical. The anticipated slowdown in growth raises questions about the sustainability of its profit margins and the company’s ability to innovate in an increasingly competitive environment. Investors and stakeholders will need to closely monitor GSK’s execution in 2026 as it strives to balance immediate challenges with long-term ambitions.
