London, February 4, 2026, 08:30 GMT
- GSK projects slower revenue growth for 2026 in its first outlook since Luke Miels took over as CEO
- Shares crept up in London following an initial drop
- A report highlighted renewed attention on cost-cutting and manufacturing adjustments
GSK (GlaxoSmithKline) is projecting slower sales growth in 2026 under new CEO Luke Miels, who took over from Emma Walmsley earlier this year. The company is bracing for patent expiries on its leading HIV drugs starting in 2028. It now expects revenue growth of 3% to 5% at constant currency, while warning that vaccines and general medicines sales might decline. Shares climbed 1.4% by 0809 GMT after an initial drop. Core earnings per share for Q4 came in at 25.5 pence, supported by an 8% sales increase to £8.62 billion.
This marks the first time Miels has laid down concrete targets. The company needs to sustain its cash flow while ramping up new product launches and advancing late-stage trials.
Simply put, the task is to make up for sales that will disappear tomorrow before they actually do. The “pipeline” refers to the lineup of drugs under development — and it’s where GSK has been investing heavily to outpace the looming patent cliff.
GSK reported a 7% rise in total 2025 sales at constant exchange rates, reaching 32.7 billion pounds. Specialty medicines led the way with 13.5 billion pounds, followed by HIV sales at 7.7 billion pounds. Vaccines brought in 9.2 billion pounds, while general medicines dipped to 10.0 billion pounds. Core operating profit jumped 11%, and core earnings per share—which excludes some one-offs—increased 12%. Cash from operations hit 8.9 billion pounds, with free cash flow at 4.0 billion pounds. The company declared an 18 pence dividend for Q4 and has completed 1.4 billion pounds of a planned 2 billion pounds share buyback. CEO Miels called 2025 “another strong performance,” highlighting five major FDA approvals last year. He also flagged upcoming approvals in 2026, including bepirovirsen and tebipenem, while reaffirming growth targets for 2026 and eyeing sales above 40 billion pounds by 2031. GSK
The bulk of gains still stem from familiar sources: HIV treatments, respiratory meds, and a vaccines lineup led by Shingrix, the shingles vaccine. The immediate concerns lie in weaker vaccine demand, ongoing policy uncertainty in the U.S., and questions over the timing of new product launches.
Bloomberg reported that GSK’s fourth-quarter profit beat forecasts, driven by strong sales of its HIV and asthma treatments. The results gave CEO Miels a welcome lift as he gets started in his role.
The Times reported that GSK is considering cost savings and manufacturing shifts across Europe, including a possible 1 billion pounds efficiency drive. However, no immediate cuts have been announced. The company is holding off on any restructuring decisions until late-stage trial results come in, with any production changes likely focused on mainland Europe rather than the UK.
The downside is clear: if late-stage trials fall short, regulators delay approvals, or vaccine demand remains uneven, GSK may have to make harder choices among spending, deal-making, and shareholder returns. This challenge looms as the clock runs down on patent protections later in the decade.
