{"id":93411,"date":"2026-07-30T01:45:08","date_gmt":"2026-07-30T01:45:08","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/93411\/"},"modified":"2026-07-30T01:45:08","modified_gmt":"2026-07-30T01:45:08","slug":"gsk-plc-gsk-q2-2026-earnings-call-highlights-strong-sales-growth-and-accelerated-pipeline","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/93411\/","title":{"rendered":"GSK PLC (GSK) (Q2 2026) Earnings Call Highlights: Strong Sales Growth and Accelerated Pipeline …"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>. <\/p>\n

Revenue: Q2 sales up 5% to more than GBP8.4 billion. <\/p>\n

Core Operating Profit: Grew 7%. <\/p>\n

Core Earnings Per Share (EPS): Up 9%. <\/p>\n

Cash Generation: Positive at GBP4.3 billion. <\/p>\n

Q2 Dividend: 17p. <\/p>\n

Gross Margin: Improved 250 basis points due to product mix benefits. <\/p>\n

Specialty Medicines Revenue: Grew 14%. <\/p>\n

Vaccines Revenue: Grew 8%. <\/p>\n

General Medicines Revenue: Down 9%. <\/p>\n

HIV Sales Growth (ViiV): Double-digit growth at 10%. <\/p>\n

Cabenuva Sales: Plus 33%. <\/p>\n

Apretude Sales: Increased 39%. <\/p>\n

Free Cash Flow: Improved by GBP1 billion. <\/p>\n

Net Debt: Increased to GBP22 billion following the Nuvalent acquisition. <\/p>\n

2026 Guidance (Sales & Operating Profit): Updated towards the upper half of the range. <\/p>\n

2026 Guidance (EPS): Now expected in the lower half of the range. <\/p>\n

Release Date: July 28, 2026 <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n

Positive Points <\/p>\n

GSK PLC (NYSE:GSK<\/a>) reported strong Q2 2026 performance with sales up 5% to over GBP8.4 billion and core operating profit growing 7%, driven by Specialty Medicines and Vaccines. <\/p>\n

The company is accelerating its late-stage pipeline with over 20 Phase III starts planned for 2026, more than double initial expectations, across key therapy areas like oncology and respiratory. <\/p>\n

GSK PLC (NYSE:GSK<\/a>) announced a new ‘Accelerate Growth’ program targeting GBP1.9 billion in annual cost savings by 2029, which will be reallocated to fund R&D and strengthen margins through the dolutegravir LOE period. <\/p>\n

The HIV business continues to outperform, with sales growing 10% in Q2, driven by long-acting injectables like Cabenuva, leading to an upgraded 2026 sales growth guidance to high single digits. <\/p>\n

The oncology pipeline is advancing rapidly with key assets like the ADCs Mo-rez and Ris-rez, and the recently acquired Nuvalent assets (Jideytro and Neladalkib) showing best-in-class potential in lung cancer. <\/p>\n

GSK PLC (NYSE:GSK<\/a>) is investing in expanding indications for key products, such as starting a Phase III trial for Shingrix to potentially prove a causal link to reducing major adverse cardiovascular events (MACE). <\/p>\n

The company’s long-acting respiratory portfolio is expanding with the launch of Exdensur and the acceleration of an ultra-long-acting TSLP program (GSK’283) into Phase III for asthma, COPD, and nasal polyps. <\/p>\n

GSK PLC (NYSE:GSK<\/a>) has a strong balance sheet and cash generation, with GBP4.3 billion in cash from operations in H1 2026, providing capacity for both business development and shareholder returns. <\/p>\n

The company is making structural changes to R&D, including relocating to the Cambridge Biomedical Campus, to improve innovation and collaboration with top academic and biotech partners. <\/p>\n

GSK PLC (NYSE:GSK<\/a>) is seeing strong commercial execution for new launches, with Blenrep leading new patient starts in second-line multiple myeloma in the UK and Nucala gaining significant share in the COPD market. <\/p>\n

Negative Points <\/p>\n

General Medicines sales declined 9% in Q2, impacted by pricing pressure on Trelegy in the US and a softer inhaled respiratory market, leading to a downgraded full-year outlook for the segment. <\/p>\n

The company’s full-year 2026 EPS guidance was lowered to the lower half of the range, primarily due to additional interest costs of around GBP160 million from the Nuvalent acquisition. <\/p>\n

GSK PLC (NYSE:GSK<\/a>) reported a significant impairment charge for Camlipixant following the failure of the CALM-2 study in chronic cough, highlighting the risks in its pipeline. <\/p>\n

The company faces a challenging transition period from 2028-2030 due to the loss of exclusivity for dolutegravir, a key HIV drug, which will pressure revenue and margins. <\/p>\n

R&D expenses grew in double digits in Q2, driven by accelerated pipeline investment, and the company expects R&D to continue growing faster than sales, pressuring near-term margins. <\/p>\n

The company’s guidance for 2026 operating profit growth is expected to be significantly Q4 weighted due to phasing of costs, including Nuvalent consolidation and a tough tax comparator in Q3. <\/p>\n

The competitive landscape in key areas like COPD and HIV remains intense, with rivals like Gilead and Merck advancing their own long-acting therapies and oral options. <\/p>\n

The company acknowledged that its early-stage R&D output needs improvement, and the benefits from its new R&D structure and relocation to Cambridge will take time to materialize. <\/p>\n

GSK PLC (NYSE:GSK<\/a>) faces ongoing pricing and access challenges in the US market, particularly for its mature General Medicines portfolio and newer products like Trelegy. <\/p>\n

The success of several key pipeline assets, such as the IL-33 program and the B7-H3 ADC Ris-rez, is still unproven in late-stage trials, carrying significant clinical and commercial risk. <\/p>\n

Q & A Highlights <\/p>\n

Here are the key highlights from the GSK PLC (NYSE:GSK<\/a>) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. <\/p>\n

Q: Does the new GBP1.9 billion cost-saving program take the margin target higher? Am I right in interpreting slide 24 that you are now aiming for margins up at the end of the 2031 period relative to where we are today?A: (Julie Brown, CFO) The program is designed to reallocate resources to the late-stage pipeline, but a portion of the savings will also drop through to the margin. We previously guided to a stable margin of 28% to 30% through the dolutegravir LOE period. We have now changed that guidance to say the margin will be **stable to improving** through that period, recognizing the drop-through from the Accelerate Growth program. <\/p>\n

Q: What are the criteria for accelerating the seven assets? Is there new decision-making in that mix? And what gives you confidence in the probability of success for these Phase III starts?A: (Luke Miels, CEO) We benchmarked the portfolio against external parameters to identify where we could compress timelines without increasing risk. (Tony Wood, CSO) Our confidence is underpinned by integrating data from human causal genetics, clinical characterization, and detailed molecular data, allowing us to draw lines of confidence in underlying biology. (Nina Mojas, President, Global Product Strategy) We also have unique data advantages, like the massive data sets from our Chinese partner for the ADCs, which gives us conviction to move quickly into global Phase III studies. <\/p>\n

Q: How are you protecting cabotegravir IP beyond the 2031 LOE? And what is your confidence in getting first-line approval for zidesamtinib (Jideytro) based on a small cohort?A: (Deborah Waterhouse, CEO, ViiV Healthcare) We have a robust IP strategy. For the current 6-times-yearly Cabenuva, we have additional protection granted through to 2040. For the 3-times-yearly treatment, we have additional protection pending through to 2047. (Hesham Abdullah, Global Head of Oncology R&D) For zidesamtinib, we are confident in the first-line approach due to the drug’s superior efficacy and tolerability profile versus competitors, including a 96% 12-month response rate vs. 74% for taletrectinib. We expect a filing before the end of the year. <\/p>\n

Q: What led to the softness in General Medicines guidance, specifically regarding the Trelegy environment?A: (Nina Mojas, President, Global Product Strategy) The pressure comes from two areas: the mature portfolio facing generic and pricing pressure, and Trelegy. For Trelegy, we are seeing increased abandonment rates in the US for the entire SIT class. While this is easing, the trajectory is at a higher level than previous years. (Julie Brown, CFO) We knew Trelegy would be under pressure in H1, and the tough comparator from a Q2 2025 rebate true-up has taken away some strength. We expect improvement in H2. <\/p>\n

Q: For the B7-H3 and B7-H4 ADCs, there are many competitors, some ahead of you. Are there any indications where you think you could be first to market?A: (Hesham Abdullah, Global Head of Oncology R&D) It’s not always about being first. Our differentiation comes from our validated linker-payload technology, unique data from our Chinese partner, and a multipronged translational strategy. For B7-H3, a potential differentiated opportunity is in non-small cell lung cancer, where we saw a 47% response rate in combination with a PD-L1 inhibitor in a PD-1 pretreated population. We are validating this in a global Phase II study. <\/p>\n

Q: On the 2031 target, is Nuvalent included in the >GBP40 billion sales figure? And how should we think about margins in 2027?A: (Julie Brown, CFO) We are totally committed to delivering >GBP40 billion in sales. Nuvalent is part of the portfolio, and we believe we will deliver that overall. None of it is dependent on new BD; any future deals would be incremental. For 2027 margins, we have guided the margin to be stable to improving through the dolutegravir LOE period (28-30%). The Accelerate Growth program provides the optionality for an improving margin, not just a stable one. <\/p>\n

Q: On the HIV pipeline, are you no longer doing a 6-monthly prevention product? And when do you expect a 2-times-yearly treatment to launch?A: (Charlotte Allerton, Head of R&D, ViiV Healthcare) For prevention, our market research shows 3-times-yearly is optimal, aligning with wellness checks. We remain committed to a 2-times-yearly prevention as a line extension and have a prodrug of cabotegravir that will enter the clinic later this year. For the 2-times-yearly treatment, we have a bold plan to get to approval in the latter part of 2030, with a Phase III start planned for 2028. <\/p>\n

Q: For the IL-33 program, do you have a target exacerbation reduction profile? And is the cardiometabolic endpoint study with an academic partner going to slow you down?A: (Kaivan Khavandi, Head of R&D, Respiratory) The types of reductions seen with Nucala would be transformative in a T2-agnostic profile. IL-33 is different; it may not work on spirometry but could have an enhanced effect on severe events and hospitalizations. The cardiopulmonary study will be run with a professional ARO, not an academic partner, so it will not slow us down. It will be additional to a conventional exacerbation study, which we would file off of if it comes sooner. <\/p>\n

Q: Following the failure of camlipixant, are there any key learnings for your business development strategy?A: (Luke Miels, CEO) We approached it correctly, integrating lessons from Dupixent. The effect was disrupted by a Hawthorne effect, which was a known challenge. It doesn’t drive a major shift in our BD strategy, but it reinforces our focus on hard endpoints, as seen in the Shingrix MACE study. (Tony Wood, CSO) We took it on due to high unmet need. The learnings are reflected in our current portfolio, <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Revenue: Q2 sales up 5% to more than GBP8.4 billion. Core Operating…\n","protected":false},"author":2,"featured_media":41713,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20784],"tags":[20785,21214,39839],"class_list":["post-93411","post","type-post","status-publish","format-standard","has-post-thumbnail","category-gsk","tag-gsk","tag-gsk-plc","tag-q2-sales"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117006403213166465","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/93411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=93411"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/93411\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/41713"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=93411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=93411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=93411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}