GSK has upgraded its 2025 revenue and earnings forecast following robust double-digit growth in its specialist cancer and HIV medicines, sending its shares higher.

Despite a significant fall in USA sales of its shingles vaccine, Shingrix, GSK shares climbed to their highest level since May 2024, rising as much as 4.3 per cent. The stock has already advanced about 25 per cent this year.

The improved outlook comes as Chief Executive Officer Emma Walmsley prepares to hand over leadership to Luke Miels early next year. The company faces challenges such as USA tariffs and the upcoming loss of exclusivity for some of its top-selling drugs, prompting an increased focus on innovation to offset potential revenue losses.

GSK reported total vaccine sales of £2.68 billion for the quarter ending 30 September, exceeding analyst expectations of £2.55 billion. However, in the USA, Shingrix sales declined by 15 per cent, while growth remained stronger in international markets.

The company maintained its vaccine forecast for 2025, projecting either a modest low-single-digit decline or broadly stable revenue, while reaffirming that vaccines continue to play a major role in its business strategy.

Investors are now looking to the incoming CEO to guide GSK towards its long-term target of surpassing £40 billion in annual revenue by 2031, compared to current expectations of around £34 billion. The revised guidance anticipates annual revenue growth of 6–7 per cent and a rise in core earnings per share of 10–12 per cent, with assumptions already accounting for existing tariffs and potential 15 per cent levies on European trade.