London, October 29, 2025 – GlaxoSmithKline (GSK.L) has boosted its 2025 sales and earnings forecasts after reporting strong growth in its specialty HIV and cancer treatments, providing a lift to the British pharmaceutical company’s shares.

Despite a sharp decline in U.S. sales of its shingles vaccine Shingrix, GSK shares rose as much as 4.3%, reaching their highest levels since May 2024. The stock has gained 25% year-to-date in 2025 and was up 2.16% at 1040 GMT on Wednesday.

Strong Performance in Specialty Medicines

GSK’s HIV and oncology portfolios drove double-digit growth, offsetting challenges in the U.S. vaccine market. CEO Emma Walmsley, preparing to hand over leadership to Luke Miels early next year, highlighted that the company is navigating U.S. tariffs and focusing on new medicines to replace revenue from drugs approaching patent expiry.

Quarterly results showed overall vaccine sales of £2.68 billion, beating analyst expectations of £2.55 billion. However, sales of Shingrix in the U.S. fell 15%, reflecting broader pressures on the American vaccine market.

U.S. Market Challenges

Walmsley noted a cautious outlook for the U.S., citing policy changes under U.S. Health Secretary Robert F. Kennedy Jr., including reduced vaccine funding and leadership shifts at the Centers for Disease Control and Prevention (CDC). Competitor Sanofi also reported lower U.S. flu vaccine sales, highlighting a trend of declining vaccination uptake.

GSK’s influenza vaccine sales in the U.S. also fell due to competitive pressures. Despite this, vaccines still accounted for over one-third of third-quarter revenue, underscoring their strategic importance to GSK’s long-term business model.

Outlook Under Incoming CEO

Investors are looking to Luke Miels to meet ambitious revenue targets, including £40 billion ($54 billion) by 2031, up from current analyst estimates of approximately £34 billion. GSK now expects annual revenue growth of 6%-7% and core earnings per share growth of 10%-12% in 2025, revised upward from prior guidance of 3%-5% revenue growth and 6%-8% earnings growth.

For the third quarter, GSK reported core earnings per share of 55 pence on £8.55 billion in sales, surpassing analyst expectations of 47.1 pence on £8.24 billion. Revenue in the U.S. segment grew 7% at constant exchange rates, totaling £4.55 billion.

Market Implications

GSK’s performance demonstrates the company’s ability to offset U.S. market headwinds through strong global demand for specialty medicines, particularly in oncology and HIV treatments. Its shares have outperformed European pharmaceutical peers in 2025, reflecting investor confidence in the company’s strategic pivot toward high-growth drug segments and effective management of tariff and regulatory challenges.