GSK PLC (LSE:GSK, NYSE:GSK) shares rose 4% to 1,707p after the pharmaceutical group raised its full-year guidance and delivered quarterly results that topped forecasts across almost every metric.
The upbeat figures, helped by a strong performance in Specialty Medicines and vaccines, also prompted positive analyst commentary, with Jefferies reaffirming its 'buy' rating and setting a price target of 2,000p.
Group revenue for the three months to the end of September rose 7% to £8.55 billion, ahead of the average City forecast of £8.28 billion.
Specialty Medicines led the charge, with sales climbing 16% to £3.4 billion. Within that division, respiratory, immunology and inflammation products grew 15%, oncology surged 39%, and HIV medicines rose 12%.
Vaccine sales advanced 2% to £2.7 billion, driven by the shingles jab Shingrix up 13% and RSV vaccine Arexvy up 36%, while meningitis products added 5%.
Total operating profit and earnings per share more than doubled year on year, reflecting a sharp fall in legal expenses after last year’s Zantac-related costs. Core operating profit rose 8% to £3 billion and core EPS increased 11% to 55p, well ahead of consensus estimates of 47p.
GSK also announced a quarterly dividend of 16p per share, a penny higher than analysts had expected.
Jefferies called it a “strong exit quarter for the outgoing CEO”, highlighting that sales and profits came in around 4% and 11% ahead of consensus respectively.
The broker said the results reflected solid execution, with revenue strength across all divisions and “clean drop-through” to profit, resulting in a 16% beat on core EPS.
Jefferies noted that GSK’s upgraded 2025 outlook suggests potential consensus profit upgrades of around 2%.
The company now expects turnover growth of 6–7%, up from around 5%, and core operating profit growth of 9–11%, from a prior range of 6–8%. Core EPS is now forecast to rise 10–12%, versus the earlier 6–8% range.
The broker also pointed to several pipeline developments. These include plans for a phase III study of the long-acting HIV treatment Q4M in 2026, the removal of some early-stage cancer and fibrosis programmes, and focus on commercial opportunities such as Blenrep in multiple myeloma and long-acting respiratory therapy depemokimab.
Jefferies concluded that the quarter’s results “should drive a positive share reaction,” reinforcing confidence in GSK’s strategic focus on vaccines and specialty medicines.