AIDS drugs boost performance, GlaxoSmithKline (GSK.US) Q4 profits exceed expectations

K-LinePoet · 2026-02-04T08:51:02+00:00

GlaxoSmithKline(GSK) exceeds expectations in Q4, driven by HIV medications and new asthma drugs, with revenue increasing 6.3% to £8.62 billion. The company expects continued growth in the coming years, especially as the anti-cancer drug Blenrep is expected to boost revenue. Although the vaccine business faces pressure, overall performance is better than expected. New CEO Mills needs to demonstrate the company's long-term growth potential to investors.

K-LinePoet

2026-02-04 08:51:02

Abstract generation in progress

GlaxoSmithKline (GSK.US) reported higher-than-expected profits for the fourth quarter, mainly driven by its HIV medications and an asthma drug that has now been approved for the treatment of lung diseases. The earnings report showed that GSK’s revenue for the fourth quarter reached £8.62 billion, up 6.3% year-over-year, surpassing expectations by £170 million; adjusted earnings per share were 25.5 pence (approximately $0.35), above analyst forecasts.

The company also maintained its profit growth guidance of 7% to 9% for this year. Some analysts previously expected a guidance of about 6% to 8% earnings per share growth, with new CEO Luke Miels setting a potentially surpassable target for the year, including the potential boost from the anti-cancer drug Blenrep.

GSK expects revenue growth of 3% to 5% in 2026; core operating profit growth of 7% to 9%; and core earnings per share growth of 7% to 9%. The company projects that sales will exceed £40 billion by 2031.

The company’s operating cash flow was £8.9 billion, with free cash flow of £4 billion.

GSK is currently facing a significant “patent cliff” for its best-selling HIV drug. The company expects its specialty drug portfolio to achieve low double-digit growth this year. This portfolio includes HIV, cancer medications, and drugs like Nucala, which has been approved in the U.S. for the treatment of chronic obstructive pulmonary disease (COPD), a serious lung condition.

Revenue from the other two business segments—vaccines and general medicines—may decline.

During the tenure of former Health Secretary Robert F. Kennedy, shifting sentiments in the U.S. have put pressure on the vaccine business. Nevertheless, vaccine performance in the last quarter exceeded expectations, mainly due to increased demand outside the U.S., especially with GSK’s shingles vaccine sales in China.

Under former CEO Walmsey, GSK spun off its consumer health division Haleon and made key acquisitions to try to strengthen its drug development pipeline. Nonetheless, Miels still needs to prove to investors that the company can achieve its revenue ambitions for the end of this decade and beyond.

Last month, GSK agreed to acquire the U.S.-based biotech company Rapt Therapeutics for $2.2 billion, which is focused on developing therapies for patients with inflammation and immune system diseases.

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