GSK raises dividend as Specialty Medicines drive profit growth

The Tip Desk · March 5, 2026 · 2 min read

The company declared a full-year dividend of 66p per share following an 11% increase in Core operating profit at constant exchange rates.

GSK Plc (GSK), the healthcare company, reported that Core operating profit grew 11% at constant exchange rates (CER), driven by strong performance in Specialty Medicines and operating leverage. The company's operating margin improved to 29.9%, an increase of 110 basis points on a CER basis. Core earnings per share (EPS) rose 12% at CER to 172.0p, supported by a share buyback.

Specialty Medicines sales grew 17% at CER and 14% at actual exchange rates (AER). In contrast, General Medicines declined 1% at CER and 4% at AER, while Vaccines remained stable at AER and increased 2% at CER. Full-year reported Group sales totaled £32.7 billion.

Cash Generated From Operations (CGFO) was £8,943 million, which included £1,195 million in settlement payments related to Zantac. Excluding those payments, CGFO increased by £1.6 billion due to higher core operating profit, cash settlements from CureVac, and lower inventory build, though this was partly offset by an increase in receivables. Free Cash Flow was £4.0 billion, accounting for £1.2 billion paid in 2025 for Zantac litigation settlements.

Net debt increased from £13.1 billion at the start of the year to £14.5 billion by the end of 2025. This change was driven by £4.4 billion in capital expenditure and targeted business development, £2.6 billion in dividends, and £1.4 billion in share buybacks.

Reflecting the year's performance, the company declared a full-year dividend of 66p per share, up from 61p per share in 2024. The expected dividend for 2026 is 70p per share.

For 2026, GSK expects turnover to increase between 3% to 5% and Core operating profit to increase between 7% to 9% at CER. Core EPS is also expected to increase between 7% to 9% at CER. These projections are supported by expectations that Specialty Medicines sales will increase by a low double-digit percentage, while Vaccines and General Medicines sales will either be stable or decline by a low single-digit percentage.

The company expects to deliver leverage at a gross margin level through continued operational efficiencies and improved product mix from Specialty Medicines growth.