GSK shares jump as profit upgrade defies tariff gloom
Shares in GSK climbed as much as three per cent to 1,705p on Wednesday morning as the pharma giant defied tariff fears with an upgrade to its profit guidance.
The London-based business said it now expects turnover to increase by six to seven per cent for the full year 2025, up from its previous guidance of three to five per cent.
The firm’s core operating profit guidance has jumped to growth of between nine and 11 per cent, up from six to eight per cent, while core earnings per share are expected to increase between 10 and 12 per cent, up from six to eight per cent.
GSK said the forecasts were “inclusive of tariffs enacted thus far and indicated potential European tariffs’ impact of 15 per cent.”
“We are positioned to respond to the potential financial impact of tariffs, with mitigation options identified. Given the uncertain external environment, we continue to monitor developments,” the firm said.
GSK reported third-quarter turnover of £8.5bn, up by seven per cent on last year, led by a 16 per cent jump in its speciality medicines sales to £3.4bn, alongside a surge in sales of its shingles vaccine Shingrix, which rose 13 per cent to £800m.
The firm held its expected dividend for the year at 64p.
Trump tariff threat
Last month, GSK unveiled a new plan to spend $30bn (£22bn) on research and manufacturing facilities in the US as the pharma giant sought to escape the wrath of Donald Trump’s erratic tariff policy.
The London-based business said the capital would be deployed over the next five years and would create hundreds of high-skilled American jobs in areas such as AI and advanced digital technologies.
The White House has said it would impose sweeping tariffs on overseas pharmaceutical companies that export to the US, but would allow companies to avoid the tariffs if they shift production to America.
The investment of £4.4bn per year into the US compares to the roughly £1.5bn R&D budget GSK has allocated to the UK. However, the company has increased its spending in the UK by approximately 50 per cent from £1bn a year just a few years ago.
GSK sources insisted the investment plan did not equate to a “no confidence” vote in the UK.
The profit upgrade marks the final set of results for chief executive Emma Walmsley as she prepares to step down from the helm of the business at the end of the year after a nine year term.
Walmsley hands over to current chief commercial officer Luke Miels, the former executive vice president of Astrazeneca, who joined GSK in 2017.
“Together, we have delivered a step-change in operating performance, new prospects for growth and a clear pathway for scale patient impact and sustained shareholder value,” Walmsley said.