After Wednesday's results, GSK PLC (LSE:GSK, NYSE:GSK) looks to have delivered one of its cleaner beats in recent quarters.
Third-quarter numbers were comfortably ahead of expectations, with sales up 4% on consensus and core operating profit 12% higher. UBS described it as a “high-quality beat”, driven by stronger HIV and specialty medicines sales, firmer margins and solid cost control.
Revenue strength was broad-based, helped by new product uptake and steady royalties from drugs such as Kesimpta.
Operating costs came in roughly in line with forecasts, allowing higher volumes and a richer mix to translate into stronger profitability. Guidance for the full year has been lifted, reflecting the improved run-rate.
The market welcomed the update, with shares up around 2% in early trading. UBS raised its price target to £19 from £16 and lifted earnings forecasts by just over 4% a year through 2030, keeping a 'neutral' rating.
The analysts said GSK’s use of AI to improve sales-force productivity is already evident in its results, and further benefits should emerge next year.
Chief executive Luke Miels, who formally takes the helm next year, reaffirmed the company’s £40bn sales goal for 2031 and flagged 2026 as a pivotal year.
That will bring the US launch decision for asthma drug depemokimab and late-stage trial data for several other pipeline candidates.
UBS said the near-term picture is stronger, but investors will want more clarity on how GSK plans to offset the loss of its key HIV patent later in the decade.