GSK Reports Q4 2025 Earnings with Strong Performance and Shareholder Returns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy GSK?
Source: seekingalpha
- Earnings Beat: GSK's Q4 Non-GAAP EPS of £0.26 exceeded expectations by £0.03, demonstrating strong profitability that enhances investor confidence and reflects effective operational management.
- Significant Revenue Growth: The company reported Q4 revenue of £8.62 billion, a 6.3% year-over-year increase, surpassing market expectations by £170 million, indicating robust demand across its product lines and contributing to overall performance improvement.
- Strong Cash Flow: GSK generated £8.9 billion in cash from operations with free cash flow of £4.0 billion, providing a solid foundation for future investments and shareholder returns, thereby enhancing the company's financial flexibility.
- Commitment to Shareholder Returns: The company declared a Q4 2025 dividend of 18p, with an expected full-year 2026 dividend of 70p, reflecting GSK's ongoing commitment to shareholder returns and its strong financial position.
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Analyst Views on GSK
Wall Street analysts forecast GSK stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GSK is 38.72 USD with a low forecast of 20.15 USD and a high forecast of 55.60 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
1 Buy
2 Hold
3 Sell
Moderate Sell
Current: 52.470
Low
20.15
Averages
38.72
High
55.60
Current: 52.470
Low
20.15
Averages
38.72
High
55.60
About GSK
GSK plc is a biopharma company. The Company’s segments include Commercial Operations and Research and Development. Its portfolio and pipeline are focused on developing medicines and vaccines in four core therapeutic areas, which are the areas of human health it focuses on to prevent and treat disease: respiratory, immunology and inflammation; oncology; human immunodeficiency virus (HIV), and infectious diseases. Its specialty medicines prevent and treat diseases, from HIV to respiratory diseases, immune-mediated conditions like lupus, and cancer. Its vaccine portfolio includes over 20 vaccines to protect people from diseases and infections throughout their lives. General medicines include inhaled medicines for asthma and COPD to antibiotics. It develops and commercializes preclinical antibody-drug conjugate for Metastatic castration-resistant prostate cancer. Its portfolio also includes Efimosfermin, a fibroblast growth factor 21 (FGF21) analog therapeutic in clinical development.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GSK to Announce Q4 Earnings on February 4
- Earnings Announcement: GSK is set to release its Q4 2023 earnings on February 4 before market open, with consensus EPS estimate at $0.62, reflecting a 97.3% year-over-year decline, while revenue is projected at $11.57 billion, indicating a robust 42.7% year-over-year growth.
- Historical Performance: Over the past two years, GSK has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating the company's financial stability and bolstering market confidence.
- Estimate Revisions: In the last three months, GSK's EPS estimates have seen two upward revisions and no downward adjustments, while revenue estimates experienced four upward revisions and two downward adjustments, indicating analysts' optimistic outlook on the company's future performance.
- Market Attention: The earnings release coincides with reports from major companies such as Amazon, Google, and Pfizer, which could influence overall market sentiment and investor decisions.
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GSK Declares £0.66 Dividend for Full Year 2025
- Dividend Declaration: GSK has declared a total dividend of £0.66 per share for the full year 2025, which includes an ordinary dividend of 18p per share, payable on April 9, and translating to $0.4968 per ADR based on the current exchange rate of $1.38/£1, demonstrating the company's commitment to shareholder returns.
- Future Outlook: The expected dividend for 2026 is projected to rise to 70p per share, reflecting GSK's confidence in its future profitability, which may attract more investor interest and enhance market trust in the company.
- Share Buyback Program: GSK commenced a £2 billion share buyback program in Q1 2025, to be executed by the end of Q2 2026, aimed at boosting earnings per share and enhancing shareholder value, showcasing proactive capital management by the company.
- Market Reaction: The announcement of the dividend and buyback plan is likely to have a positive impact on GSK's stock price, expected to attract more investors and strengthen the company's competitive position in the pharmaceutical industry.
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GSK Reports Q4 2025 Earnings with Strong Performance and Shareholder Returns
- Earnings Beat: GSK's Q4 Non-GAAP EPS of £0.26 exceeded expectations by £0.03, demonstrating strong profitability that enhances investor confidence and reflects effective operational management.
- Significant Revenue Growth: The company reported Q4 revenue of £8.62 billion, a 6.3% year-over-year increase, surpassing market expectations by £170 million, indicating robust demand across its product lines and contributing to overall performance improvement.
- Strong Cash Flow: GSK generated £8.9 billion in cash from operations with free cash flow of £4.0 billion, providing a solid foundation for future investments and shareholder returns, thereby enhancing the company's financial flexibility.
- Commitment to Shareholder Returns: The company declared a Q4 2025 dividend of 18p, with an expected full-year 2026 dividend of 70p, reflecting GSK's ongoing commitment to shareholder returns and its strong financial position.
See More
GSK Reports Strong Q4 Performance with Positive 2026 Outlook
- Significant Profit Growth: GSK's pre-tax profit surged to £950 million in Q4 from £563 million last year, demonstrating strong performance in Specialty Medicines, which is expected to drive continued growth in future earnings.
- Steady Revenue Increase: The company's Q4 revenue rose 6.2% year-over-year to £8.618 billion, reflecting double-digit sales growth in Respiratory, Immunology & Inflammation, Oncology, and HIV, enhancing its competitive position in the market.
- Optimistic Future Outlook: GSK projects core earnings per share and core operating profit growth of 7% to 9% for fiscal 2026, with turnover expected to increase by 3% to 5%, indicating strategic decisions focused on ongoing R&D and commercialization investments.
- Increased Dividends: The company declared an increased dividend of 18 pence per share for Q4, with an expected 70 pence per share for 2026, reflecting strong business performance and commitment to shareholder returns.
See More
Market Movements Ahead of U.S. Mining Conference
- Mining Stocks Surge: Ahead of the upcoming U.S. mining conference, MP Materials saw a 9.3% increase, with a nearly 30% rise year-to-date in 2026, indicating heightened market interest and demand for critical minerals, which may drive future investments and expansions for the company.
- Software Sector Decline: The S&P Software and Services sector dropped nearly 4% on Tuesday, with Cognizant plummeting 10%, reflecting investor concerns over the impact of artificial intelligence, which could undermine confidence in software companies and affect their growth potential moving forward.
- Walmart Hits $1 Trillion Market Cap: Walmart crossed the $1 trillion market cap for the first time on Tuesday, with shares up 25% over the past three months, indicating a strong recovery in the retail sector under new CEO John Furner, which may attract more investor interest.
- Biotech Earnings Reports Ahead: Eli Lilly and AbbVie are set to report earnings on
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Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
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GSK to Announce Q4 Earnings on February 4
- Earnings Announcement: GSK is set to release its Q4 2023 earnings on February 4 before market open, with consensus EPS estimate at $0.62, reflecting a 97.3% year-over-year decline, while revenue is projected at $11.57 billion, indicating a robust 42.7% year-over-year growth.
- Historical Performance: Over the past two years, GSK has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating the company's financial stability and bolstering market confidence.
- Estimate Revisions: In the last three months, GSK's EPS estimates have seen two upward revisions and no downward adjustments, while revenue estimates experienced four upward revisions and two downward adjustments, indicating analysts' optimistic outlook on the company's future performance.
- Market Attention: The earnings release coincides with reports from major companies such as Amazon, Google, and Pfizer, which could influence overall market sentiment and investor decisions.
See More
GSK Declares £0.66 Dividend for Full Year 2025
- Dividend Declaration: GSK has declared a total dividend of £0.66 per share for the full year 2025, which includes an ordinary dividend of 18p per share, payable on April 9, and translating to $0.4968 per ADR based on the current exchange rate of $1.38/£1, demonstrating the company's commitment to shareholder returns.
- Future Outlook: The expected dividend for 2026 is projected to rise to 70p per share, reflecting GSK's confidence in its future profitability, which may attract more investor interest and enhance market trust in the company.
- Share Buyback Program: GSK commenced a £2 billion share buyback program in Q1 2025, to be executed by the end of Q2 2026, aimed at boosting earnings per share and enhancing shareholder value, showcasing proactive capital management by the company.
- Market Reaction: The announcement of the dividend and buyback plan is likely to have a positive impact on GSK's stock price, expected to attract more investors and strengthen the company's competitive position in the pharmaceutical industry.
See More
GSK Reports Q4 2025 Earnings with Strong Performance and Shareholder Returns
- Earnings Beat: GSK's Q4 Non-GAAP EPS of £0.26 exceeded expectations by £0.03, demonstrating strong profitability that enhances investor confidence and reflects effective operational management.
- Significant Revenue Growth: The company reported Q4 revenue of £8.62 billion, a 6.3% year-over-year increase, surpassing market expectations by £170 million, indicating robust demand across its product lines and contributing to overall performance improvement.
- Strong Cash Flow: GSK generated £8.9 billion in cash from operations with free cash flow of £4.0 billion, providing a solid foundation for future investments and shareholder returns, thereby enhancing the company's financial flexibility.
- Commitment to Shareholder Returns: The company declared a Q4 2025 dividend of 18p, with an expected full-year 2026 dividend of 70p, reflecting GSK's ongoing commitment to shareholder returns and its strong financial position.
See More
GSK Reports Strong Q4 Performance with Positive 2026 Outlook
- Significant Profit Growth: GSK's pre-tax profit surged to £950 million in Q4 from £563 million last year, demonstrating strong performance in Specialty Medicines, which is expected to drive continued growth in future earnings.
- Steady Revenue Increase: The company's Q4 revenue rose 6.2% year-over-year to £8.618 billion, reflecting double-digit sales growth in Respiratory, Immunology & Inflammation, Oncology, and HIV, enhancing its competitive position in the market.
- Optimistic Future Outlook: GSK projects core earnings per share and core operating profit growth of 7% to 9% for fiscal 2026, with turnover expected to increase by 3% to 5%, indicating strategic decisions focused on ongoing R&D and commercialization investments.
- Increased Dividends: The company declared an increased dividend of 18 pence per share for Q4, with an expected 70 pence per share for 2026, reflecting strong business performance and commitment to shareholder returns.
See More
Market Movements Ahead of U.S. Mining Conference
- Mining Stocks Surge: Ahead of the upcoming U.S. mining conference, MP Materials saw a 9.3% increase, with a nearly 30% rise year-to-date in 2026, indicating heightened market interest and demand for critical minerals, which may drive future investments and expansions for the company.
- Software Sector Decline: The S&P Software and Services sector dropped nearly 4% on Tuesday, with Cognizant plummeting 10%, reflecting investor concerns over the impact of artificial intelligence, which could undermine confidence in software companies and affect their growth potential moving forward.
- Walmart Hits $1 Trillion Market Cap: Walmart crossed the $1 trillion market cap for the first time on Tuesday, with shares up 25% over the past three months, indicating a strong recovery in the retail sector under new CEO John Furner, which may attract more investor interest.
- Biotech Earnings Reports Ahead: Eli Lilly and AbbVie are set to report earnings on
See More
Analysis and Outlook: A New Decline in Software Performance
Market Trends: The software market is experiencing a significant selloff, indicating a downturn in investor confidence.
Company Focus: Anthropic, a key player in the AI sector, is highlighted amidst the broader market challenges.
See More
