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Mar 31, 2025
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GSK Q1 2025 Earnings Report
GSK reported strong Q1 2025 results with increased EPS, operating income, and Specialty Medicines growth.
Key Takeaways
GSK delivered solid performance in Q1 2025, led by double-digit growth in Specialty Medicines, especially in HIV, Oncology, and Immunology. Operating income and net income saw major increases, supported by lower contingent consideration charges and strong R&D momentum.
Specialty Medicines grew 17% CER, driven by HIV, Oncology, and Immunology
Operating income rose 50% YoY, aided by lower contingent consideration liabilities
Core EPS increased 5% while total EPS surged 56%
Free cash flow more than doubled to £697 million
Forward Guidance
GSK reaffirmed its FY2025 guidance, expecting turnover growth of 3-5% and core EPS growth of 6-8% at CER.
Positive Outlook
- Specialty Medicines expected to grow low double-digit %
- Royalty income revised upward to £750–800 million
- Improved product mix from Specialty Medicines enhances gross margin
- R&D investments supported by strong pipeline milestones
- Share buybacks to support EPS growth
Challenges Ahead
- Vaccines turnover expected to decline low single-digit %
- Tax rate expected to increase to ~17.5%
- Higher SG&A investment behind new launches
- Currency exchange may negatively impact reported growth
- IRA Medicare Part D redesign impacting product pricing
Historical Earnings Impact
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Avg. Return Before/After Earnings
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