GSK Announces Strong 2025 Profits but Signals Growth Slowdown for 2026
Pharmaceutical behemoth GSK has unveiled a significant increase in profits for the year 2025, buoyed by robust demand for its HIV and asthma treatments. However, the company has indicated that this growth momentum is expected to moderate throughout the coming year, 2026. This announcement coincides with the first full-year financial results presented by the firm's new chief executive, Luke Miels, who assumed leadership from Emma Walmsley at the beginning of the year.
Financial Performance and Strategic Focus
GSK reported that its annual turnover grew by 4% to reach £32.7 billion in 2025, with a particularly strong final quarter showing 6% growth. This performance was largely supported by a 17% surge in sales of its specialty medicines, which totalled £13.5 billion. Within this category, respiratory, immunology, and inflammation treatments experienced an 18% increase in sales, while HIV medication sales rose by 11%.
Core operating profits for the year climbed by 7%, accelerating to a stronger-than-anticipated 14% in the latest quarter. Despite this positive trajectory, GSK has advised shareholders that profit growth is set to slow in 2026, with the company forecasting core operating profit growth in the range of 7% to 9% for the year.
Leadership Commentary and Market Positioning
In his inaugural results statement, CEO Luke Miels described the past year's trading as "strong" and expressed confidence that GSK is "well placed to move forward in this next phase". He highlighted the company's strategic focus, particularly noting that GSK has no immediate plans to enter the competitive weight-loss drug market, a sector where rival AstraZeneca recently expanded through a partnership with a Chinese firm.
"On GLP-1 medication, it's going to be very crowded," Miels remarked. "Medically, it is a really fascinating area, but strategically for us our focus is more on the downstream effects of obesity rather than GLP-1 products."
Miels further elaborated on the company's achievements, stating, "GSK delivered another strong performance in 2025, driven mainly by specialty medicines, with double-digit sales growth in respiratory, immunology and inflammation (RI&I), oncology and HIV. Good R&D progress also continued, with five major product approvals achieved and several acquisitions and new partnerships completed to strengthen the pipeline further in oncology and RI&I."
Restructuring and Analyst Perspectives
Earlier in the week, GSK confirmed plans to cut up to approximately 350 research and development positions across the United States and the United Kingdom as part of an ongoing division overhaul. It is understood that around 50 UK jobs at the company's main R&D hub in Stevenage, Hertfordshire, are being eliminated, with final numbers for both countries to be confirmed in the coming months.
Healthcare analyst Sheena Berry of Quilter Cheviot provided her assessment of the results, noting, "GSK has delivered a solid end to 2025. This was the first full-year update under new CEO Luke Miels, and it represents a steady and credible start. While growth moderates slightly in guidance, the combination of vaccine leadership, strength in HIV and a clear long-term target should provide investors with reassurance that GSK remains on a sustainable growth trajectory."
Looking ahead, Miels emphasised that 2026 will be a pivotal year for execution and operational delivery, with a strong focus on commercial launches and accelerating research and development efforts to maintain the company's positive momentum.
