GlaxoSmithKline (GSK)
NYSE:GSK
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GlaxoSmithKline
(NYSE:GSK)
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Rating:67Neutral
Price Target:
$56.00
▼(-4.03% Downside)
Action:DowngradedDate:02/06/26
The score is supported primarily by resilient fundamentals (strong profitability and positive cash generation) and a constructive earnings outlook with higher dividend guidance and continued specialty/HIV momentum. These positives are tempered by leverage and recent revenue/FCF volatility, while technically the stock is in a strong uptrend but looks overbought, raising near-term pullback risk.
Positive Factors
Strong profitability and margins
Consistently high gross margins and the material operating margin improvement in 2025 indicate durable product-level economics and structural cost leverage. This supports sustainable cash generation and resilience to pricing pressure, enabling reinvestment in R&D and commercial programs over the medium term.
Negative Factors
Meaningful leverage on balance sheet
Persistent leverage above 1.0 constrains financial flexibility and increases interest and refinancing risk if cash generation weakens. It can limit bolt‑on M&A agility and raises sensitivity to adverse currency or one‑off charges, making capital allocation choices more trade‑off driven over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and margins
Consistently high gross margins and the material operating margin improvement in 2025 indicate durable product-level economics and structural cost leverage. This supports sustainable cash generation and resilience to pricing pressure, enabling reinvestment in R&D and commercial programs over the medium term.
Read all positive factors
GlaxoSmithKline (GSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$115.51B
Dividend Yield3.41%
Average Volume (3M)4.27M
Price to Earnings (P/E)13.2
Beta (1Y)0.37
Revenue Growth7.51%
EPS Growth132.14%
CountryUS
Employees68,629
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)0.70
Shares Outstanding2,028,876,600
10 Day Avg. Volume3,186,988
30 Day Avg. Volume4,274,102
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)4.51
Price to Sales (P/S)2.31
P/FCF Ratio12.66
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue3.06
Enterprise Value/Gross Profit4.22
Enterprise Value/Ebitda8.60
Forecast
1Y Price Target
$62.00Price Target Upside6.26% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)4.82
Revenue Forecast (FY)$45.56B
GlaxoSmithKline Business Overview & Revenue Model
Company Description
GSK plc, together with its subsidiaries, engages in the research, development, and manufacture of vaccines, and specialty and general medicines to prevent and treat disease in the United Kingdom, the United States, and internationally. It operates...
How the Company Makes Money
GSK primarily makes money by selling branded prescription medicines and vaccines to healthcare providers, hospitals, pharmacies, governments, and other purchasers across multiple international markets. A major revenue stream is product sales from ...
GlaxoSmithKline Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue by different business segments, highlighting which areas drive the most sales and profitability, and indicating where the company might focus its strategic efforts.
Breaks down revenue by different business segments, highlighting which areas drive the most sales and profitability, and indicating where the company might focus its strategic efforts.
Data provided by:
The Fly
The FlyGlaxoSmithKline Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
Overall the call was positive: GSK reported solid FY2025 financial results with strong cash generation, upgraded shareholder returns, robust specialty and HIV growth, multiple pipeline advances and R&D outputs (5 FDA approvals, 7 pivotal starts) and clear BD activity. Offsetting risks include vaccine softness in the U.S. and China inventory issues, product-specific launch execution challenges (BLENREP, ZEJULA), GenMed pricing/generic pressures, currency headwinds and one-off charges; however management provided explicit 2026 guidance (sales 3–5%, core op profit/EPS +7–9%) and articulated a plan to accelerate the pipeline and commercial execution which suggests the positives materially outweigh the negatives.Positive Updates
Strong Full-Year Financial Performance
Sales up 7% to more than GBP 32 billion; core operating profit up 11%; core EPS up 12%; operating margin improved by 110 basis points (reported margin 29.9% impacted by currency).
Negative Updates
Vaccine Market Headwinds and Mixed Performance
Vaccines sales up only 2% to GBP 9.2 billion; Shingrix up 8% driven by ex-U.S. and Japan but U.S. immunization rates slowing and partner-managed inventory in China weighing on growth; Arexvy up 2% but company expects low single-digit decline to stable in 2026; Shingrix U.S. momentum described as slowing.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
Sales up 7% to more than GBP 32 billion; core operating profit up 11%; core EPS up 12%; operating margin improved by 110 basis points (reported margin 29.9% impacted by currency).
Read all positive updates
Company Guidance
GSK guided to another year of profitable growth for 2026, forecasting sales up 3–5% at constant exchange rates, core operating profit and core EPS each up 7–9%, and a 70p dividend (a 6% increase). By product area, specialty is expected to grow at a low double‑digit rate (HIV mid‑ to high‑single digit), while vaccines and GenMed are expected to be flat to a low single‑digit decline, with sales evenly phased through the year. On the P&L GSK expects low‑single‑digit SG&A growth, R&D to grow ahead of sales, continued gross‑margin benefit from the portfolio transition and supply‑chain efficiencies, and H2‑weighted operating‑profit delivery after GBP 300m of Q4’25 charges and the Q2 annualization of the RSV settlement; currency at 28 Jan rates could reduce sales by ~3% and operating profit by ~6%. The company reiterated cash strength—on track for >£10bn cash generation in 2026 (underlying free cash generation >£8bn pre‑decisions), free cash flow was £4bn in 2025 (£>5bn excl. Zantac), net debt/EBITDA ~1.3x—and noted £4bn of 2025 shareholder distributions (93m shares repurchased at an average price of 1,473 with £0.6bn of buyback remaining); taking midpoints of 2026 ranges implies c.8% sales and c.13% operating‑profit CAGR for 2021–2026.GlaxoSmithKline Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.95B | 31.38B | 30.33B | 29.32B | 24.70B |
| Gross Profit | 23.18B | 22.33B | 21.76B | 19.77B | 16.53B |
| EBITDA | 11.62B | 6.67B | 9.08B | 8.60B | 6.49B |
| Net Income | 5.59B | 2.58B | 4.93B | 14.96B | 4.38B |
Balance Sheet | |||||
| Total Assets | 61.01B | 59.46B | 75.22B | 60.15B | 107.14B |
| Cash, Cash Equivalents and Short-Term Investments | 3.40B | 3.71B | 6.61B | 7.88B | 5.87B |
| Total Debt | 17.69B | 16.99B | 22.97B | 20.99B | 32.74B |
| Total Liabilities | 45.02B | 46.38B | 58.91B | 50.05B | 78.23B |
| Stockholders Equity | 16.35B | 13.67B | 17.01B | 10.60B | 20.39B |
Cash Flow | |||||
| Free Cash Flow | 5.82B | 3.57B | 6.26B | 6.75B | 5.30B |
| Operating Cash Flow | 7.14B | 6.55B | 7.89B | 8.16B | 7.95B |
| Investing Cash Flow | -5.72B | -1.23B | -2.40B | -10.88B | -1.78B |
| Financing Cash Flow | -1.59B | -4.73B | -6.07B | 2.05B | -7.59B |
GlaxoSmithKline Technical Analysis
Positive
58.35
Price Trends
56.64
Positive
52.79
Positive
46.69
Positive
Market Momentum
0.93
Negative
59.99
Neutral
59.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSK, the sentiment is Positive. The current price of 58.35 is above the 20-day moving average (MA) of 55.95, above the 50-day MA of 56.64, and above the 200-day MA of 46.69, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GSK.
GlaxoSmithKline Risk Analysis
GlaxoSmithKline disclosed 1 risk factors in its most recent earnings report. GlaxoSmithKline reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GlaxoSmithKline Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £229.00B | 28.13 | 23.00% | 1.53% | 10.20% | 40.57% | |
71 Outperform | $187.71B | 22.84 | 96.65% | 3.00% | 10.56% | 88.13% | |
71 Outperform | $118.20B | 15.61 | 39.27% | 4.11% | -0.22% | ― | |
69 Neutral | $115.27B | ― | 14.71% | 4.58% | -9.32% | 120.62% | |
67 Neutral | $115.51B | 13.19 | 37.19% | 3.41% | 7.51% | 132.14% | |
64 Neutral | $154.67B | 18.21 | 8.67% | 6.65% | -1.65% | -3.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GSK
GlaxoSmithKline
58.35
23.30
66.46%
AMGN
Amgen
355.30
89.95
33.90%
BMY
Bristol-Myers Squibb
60.17
13.56
29.09%
PFE
Pfizer
27.56
7.01
34.12%
SNY
Sanofi
48.06
-1.30
-2.63%
GB:AZN
AstraZeneca
15,118.00
5,167.42
51.93%
GlaxoSmithKline Corporate Events
GSK Wins First U.S. Approval for Lynavoy in PBC-Related Itch, Advancing Hepatology Push
Mar 19, 2026
On 19 March 2026, GSK announced that the U.S. Food and Drug Administration approved Lynavoy (linerixibat), an ileal bile acid transporter inhibitor, as the first medicine in the U.S. specifically indicated for cholestatic pruritus in adults with p...
GSK Discloses Chief People Officer’s March 16 ADS Purchase Under Pension Plan
Mar 18, 2026
On March 16, 2026, GSK plc reported that its Chief People Officer, Diana Conrad, acquired 12.430 American Depositary Shares in the company through participation in the GSK pension plan at a price of $54.41 per ADS on the New York Stock Exchange. T...
GSK Expands March Buyback With 732,112-Share Repurchase
Mar 18, 2026
On 17 March 2026, GSK plc repurchased 732,112 of its ordinary shares, with prices ranging between 2,002p and 2,036p and a volume-weighted average price of 2,016.45p, acting via BNP Paribas under its non‑discretionary buyback agreement. The s...
GSK Discloses Notional ADS Acquisition by US President Under Executive Savings Plan
Mar 17, 2026
On 13 March 2026, GSK reported that its US president, Maya Martinez-Davis, acquired a small number of notional American Depositary Shares through her GSK Executive Supplemental Savings Plan account. The transaction, executed on the New York Stock ...
GSK Boosts Treasury Stock With Latest Share Buyback on 16 March 2026
Mar 17, 2026
On 16 March 2026, GSK repurchased 628,000 ordinary shares of 31.25 pence each through BNP Paribas at prices between 2,026p and 2,052p, with a volume-weighted average price of 2,035.82p, as part of its ongoing share buyback programme. The shares wi...
GSK Discloses Dividend-Funded ADS Acquisition by U.S. President Martinez-Davis
Feb 27, 2026
On February 20, 2026, GSK plc reported that Maya Martinez-Davis, President, US, acquired notional American Depositary Shares through the reinvestment of dividends in her GSK Executive Supplemental Savings Plan account. The single transaction, exec...
GSK Buys Back 545,000 Shares as Treasury Stock in February Programme
Feb 27, 2026
On 26 February 2026, GSK plc repurchased 545,000 of its ordinary shares at prices between 2,155p and 2,211p, with a volume-weighted average price of 2,186.88p, under its ongoing share buyback programme executed via BNP Paribas SA. The shares, whic...
GSK’s Bepirovirsen Wins First Global Regulatory Review in Japan for Chronic Hepatitis B
Feb 26, 2026
On 26 February 2026, GSK announced that Japan’s Ministry of Health, Labour and Welfare accepted for review a new drug application for bepirovirsen, an investigational antisense oligonucleotide for adults with chronic hepatitis B. This repres...
GSK’s Linerixibat Wins Priority Review in China for PBC-Related Itch
Feb 26, 2026
GSK plc said on 26 February 2026 that China’s National Medical Products Administration has accepted its new drug application for linerixibat for priority review to treat cholestatic pruritus in patients with primary biliary cholangitis, a ra...
GSK Expands February Buyback, Lifts Treasury Stake to 5.97%
Feb 26, 2026
On 25 February 2026, GSK plc repurchased 455,000 ordinary shares at a volume-weighted average price of 2,209.58 pence, as part of its ongoing share buyback programme executed through BNP Paribas. The shares will be held in treasury, lifting treasu...
GSK Discloses Pension Plan ADS Purchase by Chief People Officer
Feb 25, 2026
On 13 February 2026, GSK disclosed that Chief People Officer Diana Conrad acquired American Depositary Shares in the company through a GSK pension plan transaction on the New York Stock Exchange. The purchase, documented in a Form 6-K filed on 25 ...
GSK Discloses February Director Share Acquisition via 401(k) Dividend Reinvestment
Feb 25, 2026
On 20 February 2026, GSK plc reported that non-executive director Dr Hal Barron acquired 64 American Depositary Shares in the company at a price of $59.52 each through his GSK 401(k) plan, following the reinvestment of dividends. The small directo...
GSK Expands February 2026 Share Buyback, Lifts Treasury Holdings to Nearly 6%
Feb 25, 2026
On 24 February 2026, GSK plc repurchased 477,000 of its 31¼ pence ordinary shares on the London Stock Exchange and Cboe Europe venues at prices between 2,175p and 2,217p, with a volume-weighted average of 2,200.50p per share. The shares, acqu...
GSK to Acquire 35Pharma in $950 Million Pulmonary Hypertension Bet
Feb 25, 2026
On 25 February 2026, GSK announced an agreement to acquire Canada-based 35Pharma Inc., a private clinical-stage biopharmaceutical company developing novel TGF-beta superfamily therapeutics, for $950 million in cash, subject to customary regulatory...
GSK Discloses February 20 Executive Notional ADS Acquisitions via Dividend Reinvestment
Feb 24, 2026
On 20 February 2026, GSK reported that non-executive director Dr Hal Barron acquired 2,007.552 notional American Depositary Shares in his Executive Supplemental Savings Plan through the reinvestment of dividends at a price of $59.52 per ADS. On th...
GSK Boosts Treasury Stock With Fresh Buybacks, Updates Voting Rights
Feb 24, 2026
On 23 February 2026 GSK repurchased 462,000 ordinary shares at prices between 2,184p and 2,213p, at a volume‑weighted average of 2,200.95p, via BNP Paribas under its existing share buyback programme. The shares will be held in treasury, brin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.