The core business is performing well with accelerating Specialty Medicines and Vaccines growth, but the massive impairments and the costly Nuvalent acquisition ($10.6B) add significant financial noise and debt. Monitor the upcoming Q3 results for initial Nuvalent revenue contribution and the pace of the Accelerate Growth cost savings program, as well as the FDA decision on neladalkib (PDUFA Nov 2026) and bepirovirsen (PDUFA Oct 2026).
Price Chart
Executive Summary
GSK reported Q2 2026 core results with total sales of £8.4 billion (+5% CER) and core EPS of 50.5p (+9% CER), driven by strong Specialty Medicines and Vaccines growth. However, total operating profit plunged 75% to £481 million due to £1.9 billion in impairments, primarily from the failed camlipixant trial, and higher contingent consideration charges. The company reaffirmed 2026 guidance at the upper half of the 3-5% turnover growth range and announced a new 'Accelerate Growth' restructuring program targeting £1.9 billion in annual savings by 2029, alongside the recently closed $10.6 billion Nuvalent acquisition.
Key Facts
- Q2 2026 total sales £8.4 billion, +5% CER; Core operating profit £2.8 billion, +7% CER.
- Total operating profit fell 75% to £481 million, driven by £1.9 billion in impairments (camlipixant £1.3B, Alector £371M).
- Core EPS rose 9% to 50.5p; Total EPS fell 69% to 10.8p.
- 2026 guidance reaffirmed: turnover +3-5% (upper half), Core OP +7-9% (upper half), Core EPS +7-9% (lower half).
- New 'Accelerate Growth' 3-year program targets £1.9B annual savings by 2029 at a cost of £2.4B.
- Completed £2B share buyback program; Q2 dividend of 17p declared.
- Closed $10.6B Nuvalent acquisition on July 15, 2026, adding zidesamtinib (FDA approved) and neladalkib (PDUFA H2 2026).
- Free cash flow of £2.0B in Q2, up 77% YoY; net debt increased to £15.1B.
Financial Impact
Q2 2026 revenue £8.4B (+5% CER); Core operating profit £2.8B (+7% CER); Total operating profit £481M (-75% CER); Core EPS 50.5p (+9% CER); Total EPS 10.8p (-69% CER); Free cash flow £2.0B (+77% YoY)
Risk Factors
- Execution risk on the Accelerate Growth restructuring program and achieving £1.9B in savings by 2029.
- Integration and pipeline risk from the $10.6B Nuvalent acquisition, which adds debt and dilutes near-term earnings.
- Ongoing legal overhang from Zantac appeals (14,000 cases) and potential generic competition for Trelegy Ellipta.
- Currency headwinds from a strengthening GBP, estimated to reduce 2026 turnover growth by -2% and Core OP growth by -4%.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001654954-26-006949 |
| Document: 0001654954-26-006949-index-headers.html | 0001654954-26-006949 |
| Document: 0001654954-26-006949-index.html | 0001654954-26-006949 |
| Document: 0001654954-26-006949.txt | 0001654954-26-006949 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 17d ago | 6-K | $50.01 $50.22 | ▲ +0.42% | ▼ −0.40% | $47.03 (−5.96%) |
Sep 14, 2026 18d ago | 6-K | $50.05 $51.08 | ▲ +2.06% | ▲ +1.95% | $47.03 (−6.03%) |
Sep 14, 2026 18d ago | 6-K | $50.05 $51.08 | ▲ +2.06% | ▲ +1.95% | $47.03 (−6.03%) |
Sep 11, 2026 21d ago | 6-K | $48.13 $50.22 | ▲ +4.34% | ▲ +4.56% | $47.03 (−2.29%) |
Sep 10, 2026 22d ago | 6-K | $48.12 $51.06 | ▲ +6.11% | ▲ +6.61% | $47.03 (−2.27%) |
Sep 10, 2026 22d ago | 6-K | $48.12 $51.06 | ▲ +6.11% | ▲ +6.61% | $47.03 (−2.27%) |
Sep 1, 2026 4w ago | 6-K | $50.66 $48.63 | ▼ −4.01% | ▼ −4.09% | $47.03 (−7.17%) |
Sep 1, 2026 4w ago | 6-K | $50.66 $48.63 | ▼ −4.01% | ▼ −4.09% | $47.03 (−7.17%) |
Aug 26, 2026 5w ago | 6-K | $51.43 $50.44 | ▼ −1.92% | ▼ −1.80% | $47.03 (−8.56%) |
Aug 24, 2026 5w ago | 6-K | $51.78 $50.25 | ▼ −2.95% | ▼ −3.42% | $47.03 (−9.17%) |
US Market Status
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