GSK 2025 Q1 Earnings Strong Growth with Net Income Surging 63.9%

GSK, ranking 163rd by market capitalization, reported its fiscal 2025 Q1 earnings on April 30th, 2025. GSK's performance in Q1 2025 surpassed expectations, with net income demonstrating impressive growth. The company reaffirmed its guidance for the year, expecting turnover growth of 3% to 5% and core operating profit alongside EPS to increase by 6% to 8%. This steady outlook aligns with the company's strategic goals, maintaining stability despite external pressures.

Revenue
GSK's total revenue grew by 2.1% to $7.52 billion in Q1 2025, compared to $7.36 billion in Q1 2024. Specialty Medicines played a crucial role, generating $2.93 billion, while Respiratory, Immunology, and Inflammation contributed $804 million. Oncology reached $415 million, with HIV treatments earning $1.71 billion. Vaccines achieved $2.10 billion, including $867 million from Shingles and $350 million from Meningitis vaccines. Arexvy RSV vaccine added $78 million, Influenza vaccines $1 million, Established Vaccines $799 million, and General Medicines $2.49 billion, with Respiratory medicines at $1.71 billion and Other General Medicines at $778 million.

Earnings/Net Income
GSK's EPS increased significantly by 54.5% to $0.40 in Q1 2025 from $0.26 in Q1 2024, indicating continued earnings growth. The company's profitability was robust, with net income rising 63.9% to $1.77 billion in Q1 2025 from $1.08 billion in Q1 2024. This performance underlines the company's stable business operations, with EPS demonstrating a positive trajectory.

Price Action
The stock price of GSK edged down by 0.82% during the latest trading day, climbed 7.62% during the most recent full trading week, and increased 2.87% month-to-date.

Post-Earnings Price Action Review
GSK's earnings report metrics reveal a tendency for slight positive movement in stock price following earnings reports, though the impact remains muted. Revenue figures show a 51.16% win rate over three days, with marginal improvement over ten days at 50.21%, and a slight increase to 54.25% over thirty days. Net income reports see a similar pattern, with a three-day win rate of 50.21%, ten-day stability at 50.00%, and a thirty-day win rate of 53.25%. EPS reports echo these trends with a win rate of 51.16% over three days, dipping slightly to 49.84% over ten days, and rising to 53.25% over thirty days. Despite these modest win rates, the maximum return observed over thirty days for these metrics remains under 0.59%, suggesting earnings reports are largely priced in.

CEO Commentary
Emma Walmsley, Chief Executive Officer of GSK, highlighted the company's robust progress in Q1 2025, with Specialty Medicines driving growth. She emphasized the resilience of GSK's portfolio, particularly in HIV, respiratory, and oncology treatments. Walmsley expressed optimism about GSK's strategic focus on advancing R&D and preparing for upcoming product launches, including a promising oncology asset acquisition.

Guidance
GSK expects 2025 turnover growth of 3% to 5%, with core operating profit and core EPS projected to rise by 6% to 8%. The company anticipates securing five major FDA product approvals within the year and remains committed to a total dividend payout of 64 pence for 2025, alongside a £2 billion share buyback program, with £273 million completed in Q1 2025.

Additional News
In recent weeks, GSK has made significant strides in its business development efforts. The company completed the acquisition of IDRx, enhancing its oncology portfolio. Additionally, GSK announced a new partnership with ABL Bio to focus on neurodegenerative diseases. The collaboration aims to explore innovative treatment options and advance research in this critical area. Furthermore, GSK has entered into a novel research collaboration with the UK Dementia Research Institute and HDRUK, investigating the potential of shingles vaccination in preventing dementia. These initiatives underscore GSK's commitment to expanding its research capabilities and addressing pressing health challenges.