GSK full-year earnings: can the pharma giant deliver on post-demerger growth strategy?
GSK reports full-year 2025 results on 4 February 2026, with investors focused on vaccine performance, specialty medicines growth and margin trends post-Haleon split.
GSK full-year earnings: can the pharma giant deliver on post-demerger growth strategy?
GlaxoSmithKline (GSK) is set to publish its full-year 2025 (FY25) results on 4 February 2026, an eagerly anticipated report that will give investors clarity on how the pharmaceutical and vaccines giant navigated a year marked by product lifecycle transitions, significant investment in Research & Development (R&D), and evolving global health dynamics.
With GSK now well into the post-spin-off era following the successful separation of Haleon, the 2025 results will be a key test of the company's ability to deliver on its strategic priorities, while managing near-term market pressures.
Revenue performance across core divisions
Investors will be looking first and foremost at revenue performance across GSK's three core divisions: Vaccines, Specialty Medicines and Consumer Healthcare (CHC) - although CHC's metrics are now more limited following the Haleon demerger.
In its interim results, GSK reported modest revenue growth, driven by strong contributions from recently launched vaccines and select specialty medicines, while older brands faced continued pricing pressure in key markets.
The full-year release will provide a more complete view of whether that growth trajectory held through the second half of the year and how well new product introductions compensated for any declines in legacy portfolio revenue.
GSK FY 2025 financial expectations:
GSK is expected to report solid revenue and dividend growth but flat pre-tax profit growth.
Revenue:
£32.51 billion, 3.6% above its £31.38 billion in the same period a year ago.
Pre-tax profit:
£8.62 billion, hardly changed compared to a year ago.
Earnings per share (EPS):
168.91 pence, up 6% compared to FY 2024 results.
GSK's portfolio transformation following the Haleon separation created a more focused pharmaceutical and vaccines business. This strategic simplification allows management to concentrate resources on higher-growth, innovation-driven segments.
Revenue growth quality matters as much as absolute figures. Growth driven by volume expansion and new product launches proves more sustainable than price increases that may face regulatory or competitive pressures.
Vaccines segment drives growth expectations
The Vaccines segment remains a central focus for the group, supported by strong uptake of meningococcal, shingles and respiratory syncytial virus (RSV) vaccines. Analysts will be watching for year-end figures that confirm strong market penetration and geographic expansion, particularly in the US, Europe and emerging markets.
Similarly, GSK's Specialty Medicines division - which includes products targeting immunology, oncology and rare diseases - has been positioned for sustainable growth, and investor attention will be on whether recent launches are achieving expected uptake and how the pipeline's near-term prospects are shaping profitability.
Key product performance to monitor
Several specific products will drive revenue assessment:
- Shingrix (shingles vaccine) - blockbuster franchise growth
- RSV vaccine uptake and market penetration
- Meningococcal vaccine portfolio performance
- Specialty medicines including Nucala and Benlysta
- Human Immunodeficiency Virus (HIV) franchise contribution and competitive dynamics
Margins under pressure from R&D investment
Margins and profitability will also be central themes in the 4 February 2026 release and represent a critical assessment area. Operating margins have been under pressure in recent periods due to a combination of competitive pricing dynamics in certain markets and upfront investment in late-stage clinical trials.
Investors will therefore be keen to see not just topline performance but also gross margin trends, operating margin stability and any commentary on expected margin progression heading into 2026.
R&D expense levels will be parsed carefully; while investment is essential for long-term growth, excessive short-term spending could dampen near-term earnings if not balanced by strong revenue execution.
Cash generation and capital allocation
GSK's cash flow and capital allocation strategy are expected to feature in management's narrative and influence investor sentiment. The company has a history of strong cash generation, which has supported dividends and share buybacks even through periods of strategic reinvestment.
With the split from Haleon now well executed, analysts will be assessing whether GSK maintains an attractive dividend yield and whether any adjustments to share repurchase programmes are signalled alongside the FY25 results.
Pipeline progress and regulatory developments
Regulatory developments and pipeline progress are further considerations that could influence investor sentiment beyond financial results. GSK has a broad late-stage pipeline, including potentially high-impact assets in oncology and immunology.
Commentary on trial readouts, regulatory submission timelines or label expansions could offer useful forward guidance that extends beyond the basic income statement and balance sheet numbers.
Macro headwinds and pricing pressures
The broader macro backdrop - including foreign exchange fluctuations, pricing pressures in major markets and healthcare policy shifts - will also be relevant for assessing results.
Pharmaceutical companies have faced ongoing challenges related to drug pricing reforms, especially in the United States (US) and parts of Europe, and GSK's results may provide insights into how these pressures are being navigated tactically by management.
Geographic revenue exposure
GSK's diversified geographic presence includes:
- United States (largest pharmaceutical market)
- Europe (multiple major markets with varying pricing dynamics)
- China (growth market with regulatory considerations)
- Emerging markets (volume growth opportunities)
- Japan (aging population driving vaccine demand)
Post-demerger strategy execution
The Haleon separation fundamentally reshaped GSK's strategic focus and financial profile. Investors assess whether the streamlined structure is delivering anticipated benefits.
Management can now concentrate exclusively on prescription pharmaceuticals and vaccines without consumer healthcare distractions. This focus potentially improves capital allocation and strategic decision-making.
The demerger created two separate investment propositions appealing to different investor preferences. GSK offers growth through pharmaceutical innovation, whilst Haleon provides consumer staples characteristics.
Portfolio rationalisation continues beyond the Haleon split, with GSK potentially divesting or discontinuing non-strategic assets. Focused portfolios typically command higher valuations than conglomerates.
Valuation considerations for pharma investors
GSK's share price performance reflects both company-specific execution and broader pharmaceutical sector sentiment since the company trades on the London Stock Exchange as a FTSE 100 constituent.
Dividend yield remains an important attraction for GSK shares given the company's income investor base but sustainable and growing dividends require strong cash generation.
Comparative valuations versus peers including AstraZeneca, Novo Nordisk and global pharmaceutical majors provide context. Relative performance depends on growth rates, pipeline quality and margin profiles.
Fundamental and technical analysis
Fundamental analysts rate GSK as a ’hold’, with a long-term consensus price target of 1856.50p, implying roughly 4% downside from current levels as of 3 February 2026.
GSK LSEG Data & Analytics chart
GSK is also viewed as a ‘hold’ by TipRanks with a Smart Score of “7 – Neutral”.
GSK TipRanks Smart Score chart
Technical analysis of the GSK share price
GSK shares have risen by around 38% over the past year and by around 5% year-to-date, and are currently trading at levels last seen in 2001.
This is encouraging for the bulls since all the yearly highs between 2013 and 2024 have been exceeded while the GSK share price is on track for its eight consecutive monthly rise and may soon reach the psychological 2000p region.
GSK monthly candlestick chart
Good support may now be found between the January 2020 peak at 1875p and the May 2024 high at 1823.5p.
Minor support sits around the January peak at 1909.5p.
GSK daily candlestick chart
While the November low at 1747p underpins, the medium-term uptrend is deemed to stay intact.
What the full-year results mean for investors
In summary, GSK's 4 February 2026 full-year results will be a key indicator of whether the group can deliver sustainable growth across its diversified portfolio while balancing investment in innovation with disciplined capital returns.
A strong set of results would reinforce confidence in the post-demerger GSK story and validate the company's strategic focus on high-growth vaccines and specialty medicines.
Weakness in core segments or disappointing guidance for 2026, by contrast, could temper investor enthusiasm and raise questions about near-term execution amid an increasingly competitive healthcare landscape. The market will particularly scrutinise vaccines performance given this segment's strategic importance.
How to invest in GSK shares
Investors interested in pharmaceutical sector exposure through GSK have several options. Here's how to approach investing in this vaccines and specialty medicines company:
- Research GSK's latest results, pipeline developments and pharmaceutical industry trends thoroughly. Understanding drug development, regulatory processes and healthcare market dynamics helps inform investment decisions. Investing for beginners provides useful background.
- Download IG Invest or open a share dealing account to access UK-listed shares. GSK trades on the London Stock Exchange under the ticker GSK.
- Search for GSK plc shares on the trading platform. Review current pricing, dividend yields and analyst recommendations before making investment decisions.
- Choose the number of shares or value of money you'd like to invest based on your portfolio allocation strategy. Consider whether to hold shares in a general account, individual savings account (ISA) or self-invested personal pension (SIPP) for tax efficiency.
- Place your trade and monitor your investment over time. GSK provides quarterly trading updates and semi-annual results, offering regular insight into operational and financial performance.
Remember that pharmaceutical stocks face regulatory, competitive and patent cliff risks. Diversification across multiple sectors reduces concentration risk in healthcare whilst maintaining some exposure to pharmaceutical innovation.
Important to know
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
The value of shares, ETFs and other ETPs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
