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GlaxoSmithKline
(NYSE:GSK)
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Rating:67Neutral
Price Target:
$53.00
▲(1.79% Upside)
Action:Downgraded
Date:10/29/26
GSK’s score is driven primarily by solid financial performance (strong margins and ongoing positive free cash flow, but elevated leverage and variability) and a constructive earnings update (reconfirmed guidance, strong cash generation, and pipeline acceleration). Valuation is supportive with a mid-teens P/E and ~3.7% dividend yield, while technicals remain a headwind with the stock below key longer-term moving averages.
Positive Factors
Improving profitability and cash flow
GSK combines a larger revenue base with strong current margins and improving free cash flow. That earnings and cash-generation profile can support investment in launches, pipeline development and shareholder returns, while providing a durable foundation for growth over the next several quarters.
Negative Factors
Meaningful leverage and rising interest costs
Leverage remains manageable but reduces financial flexibility compared with a stronger balance sheet. Higher interest costs, including acquisition-related expense, can absorb cash that might otherwise fund research, business development, debt reduction or shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and cash flow
GSK combines a larger revenue base with strong current margins and improving free cash flow. That earnings and cash-generation profile can support investment in launches, pipeline development and shareholder returns, while providing a durable foundation for growth over the next several quarters.
Read all positive factors
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 (GSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$97.86B
Dividend Yield3.73%
Average Volume (3M)4.99M
Price to Earnings (P/E)15.3
Beta (1Y)0.27
Revenue Growth8.82%
EPS Growth48.32%
CountryUS
Employees66,841
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.16
Shares Outstanding2,022,715,300
10 Day Avg. Volume5,156,567
30 Day Avg. Volume4,989,316
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)4.51
Price to Sales (P/S)2.26
P/FCF Ratio12.66
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue3.74
Enterprise Value/Gross Profit5.12
Enterprise Value/Ebitda14.34
Forecast
1Y Price Target
$61.97Price Target Upside19.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.77
Revenue Forecast (FY)$45.09B
GlaxoSmithKline Business Overview & Revenue Model
Company Description
GSK plc, a global pharmaceutical entity founded in 1715 and headquartered in Brentford, United Kingdom, dedicates its efforts to the research, development, and manufacturing of a wide array of medical solutions. Until May 2022, the company was kno...
How the Company Makes Money
GSK primarily makes money by selling branded prescription medicines and vaccines. Revenue is generated when GSK supplies these products to wholesalers, pharmacies, hospitals, government buyers, and other healthcare providers under commercial contr...
GlaxoSmithKline Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. GSK reported 5% sales growth, reaffirmed 2026 guidance, delivered strong cash generation, and highlighted substantial progress across launches, approvals, commercial growth, and the accelerated phase III pipeline. The main negatives were vaccine and inhaler market pressures, significant restructuring and financing costs, foreign exchange headwinds, ongoing uncertainty around the four-monthly APRETUDE formulation, and adoption or monitoring challenges for certain products.Positive Updates
Q3 Sales and Operating Momentum
Q3 sales increased 5% to GBP 8.9 billion, core operating profit grew 5%, and core EPS increased 1%. Specialty medicines drove momentum, with specialty sales up 15%.
Negative Updates
Vaccine Revenue Decline
Vaccine performance declined 2% in the quarter, primarily because of Shingrix China destocking, which was only partly offset by U.S. growth.
Read all updates
Q3-2026 Updates
Positive
Negative
Q3 Sales and Operating Momentum
Q3 sales increased 5% to GBP 8.9 billion, core operating profit grew 5%, and core EPS increased 1%. Specialty medicines drove momentum, with specialty sales up 15%.
Read all positive updates
Company Guidance
GSK reconfirmed 2026 guidance, with sales expected in the upper half of the range, Core operating profit also expected in the upper half of the range, and margin on track to be more than 31% at constant rates; SG&A is projected to be broadly stable, royalties are now upgraded to around GBP 900 million for the year, R&D is expected to grow significantly ahead of sales as phase III starts increase from the 10 expected at the start of the year to now 22, EPS growth is expected to be in the low half of the range, full year interest is expected to be GBP 700 million-GBP 750 million, including around GBP 160 million relating to the acquisition of Nuvalent, and foreign exchange headwinds are expected to be -1% on sales and -3% on operating profit; GSK expects charges of up to GBP 1 billion in 2026 and remains on track to deliver a target of around GBP 10 billion CGFO at constant rates.GlaxoSmithKline Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.47B | 32.67B | 31.38B | 30.33B | 29.32B | 24.70B |
| Gross Profit | 24.42B | 23.65B | 22.33B | 21.76B | 19.77B | 16.53B |
| EBITDA | 8.73B | 10.40B | 6.67B | 9.08B | 8.60B | 6.49B |
| Net Income | 4.34B | 5.72B | 2.58B | 4.93B | 14.96B | 4.38B |
Balance Sheet | ||||||
| Total Assets | 72.18B | 61.01B | 59.46B | 75.22B | 60.15B | 107.14B |
| Cash, Cash Equivalents and Short-Term Investments | 2.98B | 3.40B | 3.71B | 6.61B | 7.88B | 5.87B |
| Total Debt | 23.86B | 17.69B | 16.99B | 22.97B | 20.99B | 32.74B |
| Total Liabilities | 53.69B | 45.02B | 46.38B | 58.91B | 50.05B | 78.23B |
| Stockholders Equity | 18.88B | 16.35B | 13.67B | 17.01B | 10.60B | 20.39B |
Cash Flow | ||||||
| Free Cash Flow | 6.79B | 5.82B | 3.57B | 6.26B | 6.75B | 5.30B |
| Operating Cash Flow | 8.50B | 7.14B | 6.55B | 7.89B | 8.16B | 7.95B |
| Investing Cash Flow | -12.44B | -5.72B | -1.23B | -2.40B | -10.88B | -1.78B |
| Financing Cash Flow | 3.90B | -1.59B | -4.73B | -6.07B | 2.05B | -7.59B |
GlaxoSmithKline Technical Analysis
Negative
52.07
Price Trends
49.57
Negative
50.46
Negative
51.76
Negative
Market Momentum
0.37
Negative
46.88
Neutral
68.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GSK, the sentiment is Negative. The current price of 52.07 is above the 20-day moving average (MA) of 48.49, above the 50-day MA of 49.57, and above the 200-day MA of 51.76, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $101.00B | 23.09 | 5.52% | 5.73% | 23.68% | -30.90% | |
70 Outperform | $285.93B | 29.96 | 24.24% | 3.04% | 1.64% | -28.72% | |
68 Neutral | $652.48B | 41.09 | 19.55% | 1.96% | 7.81% | -35.95% | |
67 Neutral | $97.86B | 15.26 | 28.35% | 3.73% | 8.82% | 48.32% | |
66 Neutral | $167.86B | 38.91 | 4.89% | 5.84% | -0.21% | -59.71% | |
60 Neutral | $347.70B | 112.00 | 6.60% | 2.41% | 4.51% | -80.62% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
GSK
GlaxoSmithKline
48.74
4.36
9.82%
JNJ
Johnson & Johnson
271.04
88.55
48.53%
MRK
Merck & Company
140.93
56.82
67.55%
NVS
Novartis
156.08
36.62
30.65%
PFE
Pfizer
29.45
6.75
29.75%
SNY
Sanofi
42.24
-6.50
-13.33%
GlaxoSmithKline Corporate Events
GSK Delivers Strong Q3 2026 Core Results and Reaffirms Full-Year Growth Guidance
Oct 28, 2026
In October 2026, GSK reported third-quarter 2026 turnover of £8.9 billion, up 5% at constant exchange rates, driven by a 15% rise in Specialty Medicines and solid HIV, respiratory and oncology growth. Vaccines were slightly weaker overall, an...
GSK Highlights Strong Phase III Osteosarcoma Data for Ris-Rez from China Trial
Oct 26, 2026
On 26 October 2026, GSK reported that licensor Hansoh Pharma’s pivotal ARTEMIS-011 phase III trial in China showed risvutatug rezetecan (Ris-Rez) cut the risk of disease progression or death by 67% versus chemotherapy in patients with relaps...
GSK Reports October Executive Notional ADS Acquisition on NYSE
Oct 26, 2026
GSK plc disclosed a transaction by Maya Martinez-Davis, its President, US, in a regulatory filing for October 2026. The biopharma group reported that Martinez-Davis acquired notional American Depositary Shares within her GSK Executive Supplemental...
GSK’s Jemperli Delivers High Complete Response Rates in MSI-H Rectal Cancer, Backing New U.S. Approval
Oct 26, 2026
On 24 October 2026, GSK reported positive interim phase II AZUR‑1 data showing that 76% of evaluable adults with stage II/III MSI‑H/dMMR locally advanced rectal cancer achieved a complete response with Jemperli monotherapy, with no dis...
GSK Reports Strong Mo-Rez Phase I Data in Platinum-Resistant Ovarian Cancer
Oct 26, 2026
On 23 October 2026 in London, GSK reported updated phase I data from its BEHOLD-1 trial of mocertatug rezetecan (Mo-Rez), a B7-H4-targeted antibody-drug conjugate for platinum-resistant ovarian cancer. At the selected phase III dose, Mo-Rez delive...
GSK Boosts Q2 2026 Sales and Launches £1.9bn Accelerate Growth Programme to Fund Late-Stage R&D
Sep 8, 2026
In its second-quarter 2026 results, announced on 28 July 2026, GSK reported sales of £8.4 billion, up 5% at both AER and CER, underpinned by a strengthened late-stage pipeline and several regulatory and clinical milestones. Recent development...
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.
Disclaimer
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.