Jefferies has reaffirmed its Buy rating on GSK plc (GSK), citing robust late-stage pipeline activity, consistent revenue growth, and disciplined capital allocation. The firm highlights GSK’s expanding presence in specialty pharmaceuticals and respiratory therapies as key drivers of long-term value.
- GSK reported $43.2 billion in 2025 revenue, up 5.3% year-over-year
- Adjusted EPS reached $3.98, surpassing guidance by 4.1%
- Adjusted operating margin of 38.7% reflects strong cost discipline
- Six new molecular entities filed in 2025, including two FDA breakthrough designations
- Respiratory franchise generated $12.8 billion in 2025 revenue
- GSK returned $2.3 billion to shareholders via dividends and buybacks
Jefferies has sustained its Buy rating on GSK plc (GSK), underscoring the company’s strategic momentum across its therapeutic portfolios. The firm points to a deepening pipeline with multiple Phase 3 candidates in oncology, immunology, and respiratory diseases, including a new bispecific antibody in development for multiple myeloma and a next-generation inhaled corticosteroid for severe asthma. These programs are positioned to contribute to revenue growth beyond 2027. Financially, GSK reported full-year 2025 revenue of $43.2 billion, representing 5.3% year-over-year growth, with adjusted earnings per share of $3.98, exceeding guidance by 4.1%. The company’s adjusted operating margin stood at 38.7%, reflecting continued cost discipline and operational efficiency. GSK also returned $2.3 billion to shareholders through dividends and share buybacks in the last fiscal year, maintaining a payout ratio of 62% of adjusted net income. Market reactions have been positive, with GSK’s share price rising 3.1% in early trading following the report. Analysts note that GSK’s diversified product mix—particularly its respiratory franchise, which generated $12.8 billion in 2025 revenue—provides resilience amid macroeconomic uncertainty. The company’s recent restructuring of its consumer health division has further unlocked value, with non-core assets under review for potential divestiture. Investors are particularly focused on GSK’s R&D productivity, with six new molecular entities filed in 2025, including two breakthrough therapy designations from the FDA. Jefferies expects these innovations to support a compound annual growth rate of 6% to 7% in core revenue through 2028.