GSK Stock Jumps on Long-Term Outlook Boost, $2.5B Share Buyback Plan

GSK Plc’s (GSK) U.S.-listed shares surged Wednesday after the pharmaceutical firm boosted its long-term outlook and launched a  stock buyback on the back of optimism about sales of its new drugs.

The British drug maker also reported higher-than-estimated fourth quarter results and sales growth next year.

For 2031, GSK said it sees revenue jumping to more than 40 billion pounds (about $50 billion), above its previous outlook of more than 38 billion pounds (about $47.5 billion) on “late-stage pipeline progress.”

Chief Executive Officer (CEO) Emma Walmsley said the company lifted its 2031 estimate as the company is “increasing and prioritizing R&D investment to promising new long-acting and specialty medicines in Respiratory, Immunology & Inflammation, Oncology and HIV.” 

GSK Expects 3%-5% 2025 Revenue Growth

GSK also announced plans for a share buyback program over the next 18 months of 2 billion pounds ($2.5 billion).

The company said it expects 2025 revenue to grow between 3% and 5%, even with vaccine sales likely to fall by a low-single-digit percentage. Analysts surveyed by Visible Alpha were looking for a revenue gain of around 4%.

Its 23.2 pence ($0.29) core earnings per share (EPS) for the fourth quarter and revenue of 8.12 billion pounds also beat estimates.

GSK’s U.S.-listed shares were up around 8% by midday Wednesday.