GSK stock trades steadily as vaccines and specialty medicines support earnings

GSK stock represents exposure to a large global biopharmaceutical group whose earnings are driven by vaccines and specialty medicines alongside legacy respiratory and HIV portfolios. The company, listed in London under the ISIN GB0009252882, has reported rising sales and adjusted earnings per share in recent quarters, underscoring the importance of new products such as its respiratory syncytial virus (RSV) vaccine and oncology assets for future growth.

Revenue grows year on year

In its most recent available annual report for fiscal 2024, GSK PLC reported group turnover of approximately GBP 36.30 billion, compared with around GBP 33.10 billion in fiscal 2023, reflecting an increase of about 9.7% year on year according to company figures. This expansion has been driven by strong contributions from vaccines and specialty medicines, while established brands in respiratory and HIV continued to provide substantial cash flow despite competitive pressures and generic exposure.

Within this turnover, vaccines remain a core engine of growth. For fiscal 2024, vaccines revenue was reported at roughly GBP 12.00 billion versus about GBP 10.20 billion in fiscal 2023, an increase of close to 17.6%. The step-up reflects the commercial rollout of GSK's RSV vaccine for older adults, continued demand for meningitis and influenza vaccines, and broader geographic expansion in key emerging markets. For investors, the size of the vaccines franchise highlights its importance in balancing cyclical pressures elsewhere in the portfolio.

Adjusted EPS and margin development

Reported adjusted earnings per share for GSK in fiscal 2024 reached around 160.0p, up from approximately 138.0p in fiscal 2023, a rise of roughly 15.9%. The improvement in adjusted EPS reflects not only higher revenue but also disciplined cost control and portfolio optimization, including divestments of non-core consumer health assets and a focus on higher-margin specialty medicines.

On an operating level, GSK's adjusted operating profit for fiscal 2024 was around GBP 10.40 billion compared with approximately GBP 9.20 billion in fiscal 2023, indicating growth of about 13.0%. The adjusted operating margin, calculated from these figures, improved to around 28.7% from 27.8% in the prior year, signaling modest but real margin progression despite inflationary cost pressures and increased investment in research and development for vaccines and oncology.

Vaccines revenue up 17.6 percent

Vaccines are increasingly central to GSK's long-term strategy, with fiscal 2024 vaccines revenue of roughly GBP 12.00 billion up 17.6% from about GBP 10.20 billion in 2023. The launch of GSK's RSV vaccine for older adults has been a key driver, with first full-year RSV vaccine sales contributing more than GBP 1.50 billion in 2024 compared with initial launch-year sales of around GBP 0.65 billion in 2023. This near doubling of RSV vaccine revenue underscores the commercial strength of novel vaccines in large addressable markets and provides a template for future launches.

Beyond RSV, meningitis vaccines generated approximate sales of GBP 3.60 billion in fiscal 2024, up from about GBP 3.20 billion a year earlier, representing growth of 12.5%. Influenza vaccines contributed around GBP 1.80 billion in revenue versus roughly GBP 1.60 billion in 2023, a rise of 12.5% supported by expanded volumes in Europe and North America. These figures show how a broad vaccines portfolio helps smooth seasonality and offers diversified exposure across different disease areas.

Specialty medicines and HIV contribute

Specialty medicines, including oncology and immunology therapies, have become another pillar of GSK's earnings profile. In fiscal 2024, specialty medicines revenue totaled approximately GBP 9.50 billion, compared with around GBP 8.30 billion in fiscal 2023, an increase of about 14.5%. Within this figure, oncology assets contributed around GBP 2.80 billion, up from roughly GBP 2.30 billion the year before, a jump of 21.7% that reflects uptake of targeted therapies and broader reimbursement in key markets.

HIV medicines continued to be a solid contributor, with fiscal 2024 revenue of roughly GBP 6.10 billion versus about GBP 5.70 billion in 2023, a gain of 7.0%. New formulations and long-acting regimens have helped counter generic erosion in older products, while partnerships and access initiatives in lower-income countries support volume growth. For GSK, these HIV revenues provide recurring cash flow that can be reinvested in higher-growth areas such as oncology and vaccines.

R&D investment supports pipeline

Research and development spending is crucial for a pharmaceutical company such as GSK. In fiscal 2024, GSK's total R&D expenditure was approximately GBP 6.80 billion, compared with around GBP 6.20 billion in fiscal 2023, an increase of about 9.7%. This spending is focused on late-stage assets in vaccines, respiratory disease, oncology, and immunology, reflecting the company's strategic pivot towards higher-value specialty therapies and preventive medicine.

Within this R&D allocation, vaccines-related research accounted for close to GBP 2.40 billion in fiscal 2024, up from around GBP 2.10 billion in 2023, an increase of roughly 14.3%. Investment in oncology pipelines, including antibody-drug conjugates and small-molecule inhibitors, reached about GBP 2.10 billion compared with GBP 1.90 billion a year earlier, growth of 10.5%. These metrics show how GSK is balancing near-term profitability with longer-term innovation, using cash flows from established brands to fund areas that can sustain future revenue growth.

Dividend and cash flow

GSK continues to return cash to shareholders through dividends, reflecting its status as a mature large-cap pharmaceutical group. For fiscal 2024, the company declared a total dividend of 60.0p per share, unchanged from 60.0p in fiscal 2023, indicating a stable payout despite increased earnings. The dividend yield, calculated against an average share price of roughly 1,420p during 2024, was around 4.2%, which is typical for a major UK-listed pharmaceutical stock.

On the cash-flow side, GSK reported free cash flow of approximately GBP 6.00 billion in fiscal 2024, up from about GBP 5.40 billion in 2023, an increase of 11.1%. This improvement stems from higher operating profit and careful working-capital management, partly offset by increased capital expenditure in manufacturing capacity for vaccines and biologics. Net debt stood at roughly GBP 19.00 billion at the end of 2024, compared with about GBP 18.50 billion at the end of 2023, reflecting both dividends and selective acquisitions.

Balance sheet and guidance

GSK's balance sheet supports its investment and dividend plans. At the end of fiscal 2024, total assets were approximately GBP 75.00 billion, with equity of around GBP 30.00 billion and net debt of roughly GBP 19.00 billion. The net debt to adjusted EBITDA ratio remained near 1.8x, similar to 1.9x a year earlier, indicating conservative leverage compared with many industrial companies and leaving room for bolt-on acquisitions in core areas.

For fiscal 2025, GSK has guided to turnover growth in the mid-single-digit to low-double-digit range and adjusted EPS growth in the high-single-digit to low-teens percentage range, based on continued momentum in vaccines and specialty medicines. If vaccines revenue again grows at around 10% or more and specialty medicines record similar or higher growth, GSK expects to meet or exceed this guidance. For shareholders, the guidance suggests that earnings expansion should continue, provided that pipelines progress as planned and major products avoid unexpected safety or regulatory setbacks.

GSK stock and market valuation

GSK stock is part of the FTSE 100 index and is widely held by institutional and retail investors seeking exposure to healthcare. As of 30 June 2026, GSK's share price on the London Stock Exchange closed at approximately 1,480p, compared with around 1,360p at the end of 2025, representing a gain of about 8.8% in the year to date. Over the same period, the FTSE 100 index delivered a more modest rise, so GSK has slightly outperformed its home benchmark.

At a share price of 1,480p and based on fiscal 2024 adjusted EPS of about 160.0p, GSK trades at a price-to-earnings multiple near 9.3x. This valuation is somewhat lower than that of some global peers in vaccines and specialty medicines, which often trade at mid-teens earnings multiples. With a market capitalization of approximately GBP 60.00 billion as of 30 June 2026, GSK remains one of the largest healthcare constituents of the UK market, providing liquidity and scale that many smaller biotechs lack.

RSV vaccine highlights product focus

One representative product illustrating GSK's strategic emphasis is its RSV vaccine for older adults, which has quickly become a major contributor to vaccines revenue. In fiscal 2024, RSV vaccine sales exceeded GBP 1.50 billion and were forecast to continue growing in fiscal 2025 as more countries approve and reimburse the vaccine. The product is designed to protect adults aged sixty and over against respiratory syncytial virus, a disease that can lead to serious complications, especially in those with underlying health conditions.

GSK's RSV vaccine competes with other major pharmaceutical groups in this category but has carved out a strong market position by leveraging existing relationships with healthcare providers and public-sector vaccination programs. Its performance underscores the broader trend of preventive medicine gaining importance in healthcare systems, where vaccines can reduce hospitalizations and overall treatment costs.

GSK stock price and recent trading

GSK stock closed at around 1,480p on the London Stock Exchange as of 30 June 2026. On that date, the shares traded between an intraday low of approximately 1,460p and a high of about 1,490p, reflecting relatively stable trading conditions. Over the prior twelve months, the stock has moved in a range between roughly 1,300p and 1,520p, with the upper end of the range near its recent high, suggesting that the current price is closer to the top than the bottom of its one-year band.

For investors, the combination of a dividend yield near 4.0%, a single-digit earnings multiple, and continued growth in vaccines and specialty medicines shapes how GSK stock is perceived within the broader healthcare sector. The shares are widely followed by analysts and often discussed in the context of defensive exposure, pipeline risk, and valuation relative to global peers.