GSK: FY25 Deep Dive
FY25 sales £32B+ / $31.95B (+7%) — Specialty Medicines led with 16% growth. Oncology +43% (Jemperli +89%, Ojjaara +60%, BLENREP approved 15 markets). Net income $5.59B (+117%); Diluted EPS $2.72. 5 FDA approvals + 7 new pivotal trial starts. $30B US R&D + manufacturing investment over 5 years. Full-year EPS guidance raised to 10%-12%.
Key Takeaways
GSK closed fiscal 2025 (calendar year ended December 31, 2025) at £32 billion+ / $31.95 billion of sales, up 7% YoY. The structural read: Specialty Medicines was the key growth driver at +16% (vs General Medicines +4% / Vaccines +2%). Specialty included three high-growth franchises:
- Respiratory Immunology and Inflammation (RI&I): full-year sales +18%, with Benlysta +22% (lupus / nephritis) and Nucala +15% (10th consecutive year of double-digit growth)
- Oncology: sales +43% — Jemperli +89%, Ojjaara +60%, BLENREP approved in 15 markets globally, ZEJULA decreased on FDA labeling restrictions
- HIV: sales +11% — driven by long-acting injectables + Dovato; Cabenuva +42%, Aplitude +62%
Net income reached $5.59 billion (+117% from $2.58B FY24); diluted EPS $2.72 (vs $1.24); core operating profit +11%; core EPS +12%. Operating income $7.01B. Free cash flow $5.82B (+63%). Capital allocation: $2.51B in dividends; zero buybacks (focused on R&D + acquisitions). Total debt $17.69B (+$700M). The strategic FY25 highlights: 5 FDA approvals (BLENREP last in October); 7 new pivotal trial starts; $30 billion US R&D + advanced manufacturing investment over 5 years announced; acquired Rapp Therapeutics for food allergy IgE antibody Ozekibart. 15 scale opportunities identified with peak sales potential >£2 billion by 2031. Sell-side coverage in window: limited captures (broader sell-side universe is large; Feb-April actions not heavily captured in dataset). Full-year guidance raised to 6-7% sales growth, 9-11% operating profit, 10-12% EPS.
Main business structure
GSK reports two operating segments + two business units:
| Segment / BU | FY25 Approx Revenue Share | YoY |
|---|---|---|
| Specialty Medicines | ~50% | +16% |
| Vaccines | ~30% | +2% |
| General Medicines | ~20% | +4% |
| Total | 100% | +7% |
Specialty Medicines (~50% — the growth engine)
Respiratory Immunology + Inflammation (RI&I)
- FY25 sales +18%
- Benlysta +22%: lupus / nephritis franchise
- Nucala +15%: severe asthma — 10th consecutive year of double-digit growth
- Exdensur approved for severe eosinophilic asthma FY25
Oncology (+43%)
- Jemperli +89%: PD-1 inhibitor in endometrial cancer (Brisbane RUBY trial leading approvals globally)
- Ojjaara +60%: myelofibrosis franchise
- BLENREP: approved in 15 markets globally (last approval October 2025); BCMA antibody-drug conjugate
- ZEJULA decreased on FDA labeling restrictions
HIV (+11%)
- Long-acting injectables driving growth
- Cabenuva +42% (long-acting HIV)
- Aplitude +62% (Q3-Q4 launch)
- Dovato continuing share gains
Vaccines (~30% — Shingrix + Bexsero + Arexvy)
- FY25 sales £9.2B (+2%)
- Shingrix +8%: shingles
- Bexero +16%: meningococcal B
- Arexvy +2%: RSV adults
General Medicines (~20% — TRELEGY + anti-infectives)
- TRELEGY strong; ICS/LABA/LAMA combination
- BLUJEPA + tebipenem (anti-infectives) progressing in US
Pipeline + Strategic Moves
- 5 FDA approvals in 2025
- 7 new pivotal trial starts in 2025
- 15 scale opportunities with peak sales potential >£2 billion by 2031
- $30 billion US R&D + advanced manufacturing investment over 5 years (announced 2025)
- Acquired Rapp Therapeutics for food allergy asset (Ozekibart, IgE antibody)
- Bepirovirsen Phase 3 — chronic hepatitis B potential
FY26 Focus Areas
- Drive top-line growth via launch products: BLENREP + Exdensur
- Accelerate late-stage portfolio
- Execute business development
- Simplify operations + leverage AI/technology
- Executive team changes
Pipeline Highlights
- BLENREP: 15-market approvals + ongoing label expansion
- Exdensur: severe eosinophilic asthma launched
- Bepirovirsen: chronic hepatitis B Phase 3
- Camlipixant + Diphenazole: respiratory pipeline
Customer concentration. Specialty distributors per industry standard.
Geographic mix. US ~55%, Europe ~25%, International (incl Japan + China) ~20%.
Scale anchors. ~67,000 employees globally. London / Brentford HQ. R&D ~£6B annually (~19% of revenue).
Key core metrics (3-year trend)
1. Sales growth
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Sales ($B) | 30.33 | 31.38 | 31.95 |
| YoY | — | +3% | +7% |
The +7% FY25 print reflects Specialty Medicines acceleration on Oncology + RI&I + HIV.
2. Earnings
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Operating income ($B) | 6.75 | 4.02 | 7.01 |
| Net income ($B) | 4.93 | 2.58 | 5.59 |
| Diluted EPS | $2.40 | $1.24 | $2.72 |
| Core operating profit YoY | — | — | +11% |
| Core EPS YoY | — | — | +12% |
The FY24 net income depression reflects litigation reserves + restructuring; FY25 normalized.
3. Free cash flow + capital allocation
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| OCF ($B) | 7.89 | 6.55 | 7.14 |
| Capex ($B) | 1.63 | 2.98 | 1.32 |
| FCF ($B) | 6.26 | 3.57 | 5.82 |
| Dividends ($B) | 2.79 | 2.44 | 2.51 |
| Buybacks ($B) | 0 | 0 | 0 |
| Total debt ($B) | 22.97 | 16.99 | 17.69 |
FCF rebounded +63% YoY to $5.82B. Zero buybacks reflects R&D + acquisition + dividend prioritization.
Market evaluation
Sell-side coverage (Feb-April 2026 covered events). Limited captures in window. Broader sell-side universe is larger; recent visible activity sparse.
Buy-side positioning. GSK is a core European pharma holding. Trades at discount to AZN / NVS / LLY on legacy franchise concerns + slower growth + recent Pfizer / Sanofi competitor pressure. Short interest below 1% of float.
FY25 corporate structure: Specialty Medicines +16% drives turnaround narrative
FY25 was the year GSK's Specialty Medicines turnaround thesis printed cleanly: +16% growth led by Oncology +43% (Jemperli +89%, Ojjaara +60%, BLENREP 15-market approval), RI&I +18% (Benlysta + Nucala double-digit growth), HIV +11% (Cabenuva +42%). Net income +117% to $5.6B; FCF +63% to $5.8B. The strategic moves (5 FDA approvals, 7 pivotal trial starts, $30B US investment, Rapp Therapeutics acquisition) extend the pipeline-rebuild narrative. The two FY26 watch items: (1) does Specialty Medicines sustain the +16% growth pace as comparison bases tighten; (2) does the 15 scale opportunities with >£2B peak sales by 2031 begin to materialize on the trial readout calendar. The Q1 FY26 earnings print this week is the proximate event for measuring continued Specialty growth + BLENREP commercial uptake + pipeline progression.