GSK (NYSE: GSK) core profit rises 5% but restructuring charge hits total profit

What happened

GSK plc (NYSE: GSK) said third-quarter core operating profit rose 5% at constant exchange rates, while total operating profit fell 16%. The gap comes from a £328 million restructuring charge for the Accelerate Growth programme and lower other net operating income.

Sales were £8.9 billion, up 5% at constant rates. Specialty Medicines rose 15% to £3.9 billion, with HIV at £2.1 billion. Vaccines fell 2% to £2.6 billion. General Medicines was stable at £2.4 billion.

Core EPS rose 1% and total EPS fell 21%. GSK reaffirmed 2026 guidance: turnover growth of 3% to 5%, Core operating profit growth of 7% to 9% and Core EPS growth of 7% to 9%.

Key numbers

Metric	Latest	Change	Source
Q3 2026 sales	£8.9 billion	+5% (constant exchange rates)	SEC 6-K
Core operating profit	£3.08 billion	+5% (constant exchange rates)	SEC 6-K
Total operating profit	£2.13 billion	-16% (constant exchange rates)	SEC 6-K
Free cash flow	£2.08 billion	from £1.25 billion, +67%	SEC 6-K
Major restructuring charge	£328 million		SEC 6-K
ViiV special dividend to GSK	$250 million		SEC 6-K

Read more: GSK (GSK) company research

Why it matters

OptimistFi has argued that GSK works if its branded pharma and vaccine cash engine outgrows patent, pricing and pipeline drag while the margin recovery holds. The quarter supports that view. Core operating margin was 34.6%, down 0.3 percentage points at actual exchange rates, even as core R&D spending rose 22%.

Free cash flow was £2.08 billion, up 67% from £1.25 billion in the third quarter of 2025. That earlier quarter carried £565 million of Zantac settlement payments and a £268 million cash settlement from CureVac.

Nine-month free cash flow also includes a one-time $250 million (£187 million) special dividend from the ViiV Healthcare shareholding restructure. ViiV issued new shares to Shionogi for $2.13 billion and cancelled Pfizer's holding, returning $1.88 billion to Pfizer.

Higher interest charges of around £700 million to £750 million, including the Nuvalent acquisition, and a tax rate near 17.5% keep Core EPS guidance in the lower half of its range. Turnover and Core operating profit guidance sit in the upper half. Arexvy sales fell 24%.

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What's next

CEO Luke Miels hosts a conference call and webcast at 12:00 GMT (08:00 EDT) on Oct. 28, with a transcript to follow. Management comments on finance costs and tax would show whether Core EPS can move out of the lower half of its range.

GSK declared a third-quarter dividend of 17p and expects 70p for full year 2026.

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