GSK shares slide as vaccine sales dip and net profit falls 23% in third quarter

Quarterly results

GSK reported third-quarter net profit of £1.543bn, down 23% from £2.013bn a year earlier, with costs from its savings programme weighing on the figure. Pre-tax profit fell 19% to £1.9bn, and the restructuring charge for the quarter was reported as £318m in one account and £328m in others. Revenue rose 4% to £8.9bn at reported exchange rates and 5% at constant currency, helped by sales of HIV, cancer and lupus medicines. Core operating profit rose 5% to £3.08bn, ahead of the £2.93bn the market expected, while core earnings per share of 54.6 pence beat a forecast of 50.4 pence.

Q3 20252.013

Q3 20261.543

Q3 2025

2.013 £bn

Q3 2026

1.543 £bn

Data from the article text

Vaccines under pressure

Vaccines were the weakest part of the quarter, although sources differ on the size of the drop. The Guardian and Evening Standard put vaccine sales down 2% to £2.6bn, while the Financial Times reported a 4% fall year on year, partly because of weaker Chinese demand for Shingrix. Shingrix sales fell 5%, and the RSV vaccine Arexvy declined by 24% in one report and 22% in another. The FT linked weaker flu shot revenue to tougher US competition and delayed deliveries. Meningitis vaccine sales rose 12%, and specialty medicines and cancer treatments grew 15% and 23%. RTE reported that the asthma drug Exdensur, on the market for just under a year, missed expectations.

Costs, jobs and the UK

GSK's three-year plan aims to save £1.9bn a year by 2029 by simplifying operations and shifting money into research and development. The restructuring is expected to cost £2.4bn in total, with most charges arriving this year and next. Miels said GSK is slightly ahead on that cost plan. In Belgium, more digital tools and automation are expected to lead to about 1,200 job losses, although the country will keep producing the bulk of GSK's vaccines. GSK had flagged the Belgian plan in mid-October, when the local unit employed more than 8,000 people. Miels called the UK impact 'relatively limited', with some support-role cuts at the London headquarters.

“You never want headquarters to be too big; I want people on the bench in the lab.”

Pipeline and the patent cliff

Dolutegravir, the HIV medicine that is a blockbuster for GSK, is due to lose patent protection toward the end of the decade, allowing other drugmakers to sell cheaper generic versions. Sales pressure tied to that expiry is expected between 2028 and 2030. GSK aims to generate more than £40bn in total annual revenue by 2031 while it rebuilds its cancer business. It expects to start 22 late-stage studies by the end of the year, 18 of which are already running, focused on specialty medicines and vaccines. In 2026 Miels also sealed a $10.6bn deal for the US biotech Nuvalent, which the FT called the company's biggest biotech acquisition, and in July GSK said it would close its main research hub in Stevenage and open a flagship site in Cambridge. AJ Bell's Dan Coatsworth said Miels still has to build a pipeline of new drugs before the patent loss, and he added:

“However, the latest update is a reminder Miels still has plenty of work to do.”

Share price and outlook

Shares fell in London on Wednesday, 28 October, and early falls were reported anywhere from 5.3% to 7%, depending on the time and source. At the deepest point the drop reached 7% before easing to 5.5%, keeping GSK the biggest faller on the FTSE 100. Bloomberg called it the biggest share plunge since April, and the losses, if they held, would erase most of the stock's gains this year. In a statement, Miels said:

“We remain focused on operational delivery, execution and accelerating research and development.”

GSK kept its 2026 outlook, with turnover growth expected in the upper half of its 3%-5% range and core earnings per share growth in the lower half of its 7%-9% range. The company also declared a dividend of 17 pence for the third quarter and expects 70 pence for the full year.