GSK Beats Q2 Earnings & Revenue Estimates, Announces Cost-Saving Plan

All growth rates mentioned below are on a year-over-year basis and at CER.

GSK’s Q2 Segmental Discussion

GSK reports under three segments — General Medicines, Specialty Medicines and Vaccines. While sales in the Specialty Medicines segment increased 14%, the Vaccines segment rose 8%. Sales in the General Medicines segment, however, declined 9% on a year-over-year basis.

GSK’s Specialty Medicines Aid Top Line

HIV Sales

HIV sales rose 10% in the second quarter of 2026, driven by an increase in patient demand for Dovato as well as long-acting medications, Apretude and Cabenuva. Sales in the quarter also benefited from favorable pricing due to channel mix, which offset the impact of the decline in sales of the mature products.

GSK generates the majority of its HIV sales from its dolutegravir franchise, comprising two-drug regimens — Dovato and J&J JNJ – partnered Juluca — and three-drug regimens — Triumeq and Tivicay.

Dovato sales rose 13%, while those of the J&J-partnered Juluca rose 8%.

Tivicay sales declined 6% during the quarter, while those of Triumeq fell 15%.

Sales of Apretude and Cabenuva rose 39% and 33%, respectively. These two long-acting medicines currently account for more than a quarter of HIV sales.

Oncology Sales

Oncology sales rose 17%, driven by strong demand for Jemperli, Ojjaara/Omjjara and Blenrep.

Jemperli sales rose 27% during the second quarter, as strong growth continued in Europe and International, driven by launches and reimbursement expansion across markets. Growth in the United States was slow as new patient starts moderated.

Sales of the blood cancer drug Ojjaara/Omjjara rose 36%, primarily driven by strong patient uptake and continued commercial launches across Europe and international markets. U.S. volume growth was partly offset by ongoing pricing pressures.

Zejula sales plunged 34% in the quarter due to increased competition in Europe and significant volume reduction in the United States.

Blenrep sales rose more than 100% during the second quarter, driven by patient uptake in the United States.

Respiratory, Immunology & Inflammation Sales

Respiratory, Immunology & Inflammation sales increased 19%, driven by Nucala and Exdensur in respiratory and Benlysta in immunology.

Sales of the respiratory drug Nucala were up 23% during the quarter, mainly driven by strong performance across all markets, especially the United States, where the drug recently received label expansion in the COPD indication. This upside was partially offset by continued pricing pressures and channel mix impacts.

Sales of the immuno-inflammation drug Benlysta were up 11% in the quarter, reflecting strong volume growth across all marketed territories.

GSK’s Vaccines Sales Rise

In Vaccines, sales growth was mainly driven by increased uptake of shingles vaccines as well as RSV and Meningitis vaccines.

Sales of the company’s shingles vaccine, Shingrix, rose 3% during the quarter, driven by growth, especially in Europe, which offset lower sales in International. U.S. sales were broadly stable.

In Meningitis vaccines, sales of Bexsero rose 17%, while Menveo sales were up 8%.

Sales of the RSV vaccine, Arexvy, grew more than 100% during the quarter, due to Australian tender deliveries and prior period rebate adjustments in the United States.

Influenza vaccine sales rose 100% during the quarter.

Sales of Other Paediatric & Adult vaccines (previously known as Established vaccines) fell 8%, .

GSK’s General Medicines Fall

In this segment, Anoro Ellipta sales decreased 5%, while sales of Relvar/Breo Ellipta declined 13%. Ventolin sales declined 22%.

While Advair/Seretide sales declined 3%, sales of Flixotide/Flovent plunged 21%.

Trelegy Ellipta sales declined 7% due to Medicare benefit design changes and unfavorable pricing and channel mix in the United States. However, strong volume growth in Europe and international markets was driven by patient demand.

Operating Expenses

Core selling, general and administration costs rose 5% to £2.19 billion, driven by ongoing productivity initiatives and net legal settlements and expenses.

Core research and development expenses rose 13% to £1.72 billion. This uptick highlights the company’s continued investment in pipeline development.

GSK 2026 Guidance

GSK reaffirmed its total revenue guidance for 2026, which it had provided earlier this year. The company continues to expect sales to increase 3-5% during the year.

GSK expects both core operating profit and core EPS to grow in the range of 7-9%, at the upper half of the range.

GSK expects sales of Specialty Medicines to increase by a low double-digit percentage at CER in 2026. However, management forecasts sales across the Vaccines franchise to be broadly stable or increase at a low single-digit percentage, which was previously expected to decline by a low single-digit percentage. General Medicines sales are now expected to decline by a mid-single-digit to low single-digit percentage, which was previously expected to decline by a low single-digit percentage to broadly stable.

Meanwhile, R&D is now expected to increase significantly as part of the company’s Accelerate Growth program, while SG&A is expected to be broadly stable. The adjusted tax rate is expected to be around 17.5%.

GSK Announces Cost-Saving Plan

Alongside its earnings release, GSK announced the three-year Accelerate Growth program, which aims to deliver £1.9 billion ($2.5 billion) in annualized cost savings, to be fully realized by 2029.

Investors appeared to welcome the announcement, sending the stock up 3.3% yesterday.

Year to date, shares of GSK have rallied 11.4% compared with the industry’s rise of 2.9%.

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Management plans to reinvest these savings from the above-mentioned program into R&D, particularly to support late-stage pipeline development, as well as other business development activities, while improving operating margins to help offset the anticipated loss of exclusivity for dolutegravir products between 2028 and 2030.

The company now expects to have more than 20 phase III studies underway in 2026, more than double its previous expectation of 10.

GSK also reiterated its outlook for 2031, expecting to generate sales of more than £40 billion with growth expected to accelerate after that

GSK’s Zacks Rank & Stocks to Consider

GSK currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.30, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have lost 4.4% year to date.

Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 151.7% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.

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