GSK PLC (LSE:GSK, NYSE:GSK) delivered a strong set of second-quarter results, beating expectations on sales, profits, and earnings per share, and raised its guidance to the top end of its previous range.
However, UBS analysts caution that much of this outperformance was driven by timing effects, such as early HIV medicine orders and stock builds, particularly in France for the Shingrix vaccine, which are likely to reverse later in the year.
Key growth areas were HIV and vaccines, which both topped forecasts, while general medicines lagged slightly.
R&D costs were higher, but this was offset by lower spending on selling and administration, a trend the company expects to reverse in the second half as new launches ramp up.
GSK is now guiding for sales and earnings growth towards the upper end of its 2025 targets, though UBS points out consensus expectations were already close to these new numbers.
Its analysts also flag that currency headwinds are expected to drag on reported results.
On the pipeline, investors will be watching the CALM-2 trial in chronic cough, now pushed back to late 2026, and any developments on Blenrep after a recent negative FDA opinion.
The shares were up 1.5% at 1,417.5p.