Group 1 - Caterpillar's stock increased by 5.9% after Q3 adjusted EPS exceeded expectations [1] - GlaxoSmithKline's stock rose by 5.3% due to a Q3 revenue increase and a return to profitability [1] - Bloom Energy's stock surged by 13% with a year-over-year growth of 57.1% in Q3 [1] Group 2 - FIS's stock plummeted by 42.1% after lowering its full-year adjusted EPS guidance [1]

Core Insights - The market is anticipating a 25 basis point rate cut by the Federal Reserve, which seems to be a foregone conclusion [1] - Major U.S. stock indices opened higher, with the Nasdaq up 0.67%, S&P 500 up 0.28%, and Dow Jones up 0.3% [1] Company Performance - Nvidia's stock rose over 3.4%, making it the first company to surpass a market capitalization of $5 trillion, following CEO Jensen Huang's rebuttal of AI bubble concerns [1] - Caterpillar's stock increased by more than 7.8% after Q3 earnings exceeded expectations, driven by strong performance in its energy and transportation sectors [1] - Verizon's stock climbed over 4.8% as the company reported solid Q3 results, with the CEO promising actions to drive transformation [1] - GlaxoSmithKline's stock rose over 5.5% after reporting Q3 earnings that surpassed expectations and raising its 2025 earnings guidance [1]

Core Insights - GSK reported strong third-quarter results with sales of $11.53 billion, an 8% increase at constant currency, surpassing analyst expectations of $11.16 billion [1] - Core earnings rose 15% at constant currency to $1.48 per share, exceeding the consensus forecast of $1.26 [1] Sales Performance - Vaccine sales increased by 1% to 2.68 billion pounds, driven by strong demand for Shingrix and Arexvy, despite lower sales in Established and Influenza vaccines [2] - Arexvy sales reached 251 million pounds, up 34%, while Meningitis vaccine sales increased 4% to 541 million pounds [3] - Shingrix sales were 830 million pounds, up 12%, and Specialty Medicines sales grew by 15% to 3.41 billion pounds, reflecting strong performance across various therapeutic areas [3] Guidance Update - GSK raised its full-year 2025 guidance, expecting sales growth of 6% to 7%, up from the previous 3% to 5% range [6] - Core operating profit is anticipated to grow between 9% to 11%, and core earnings per share are expected to increase by 10% to 12% [6] - Specialty Medicine sales are projected to increase at a mid-teens percentage, an upgrade from the prior low teens guidance [6] Market Response - Following the positive earnings report and upgraded guidance, GSK stock rose by 2.56% to $44.82 in premarket trading [7] Tariff Considerations - GSK acknowledged the ongoing U.S. investigation regarding the impact of pharmaceutical imports on national security and indicated potential European tariffs of 15% [5] - The company is prepared to address the financial implications of these tariffs with identified mitigation options [5]

Financial Data and Key Metrics Changes - Total sales increased by 8% for the quarter, with core operating profit up 11% and core earnings per share up 14% to 55p [3][4] - Cash generation for the year so far is £6.3 billion, supporting growth investments and shareholder returns, including a dividend of 16p for the quarter [4][36] - Operating margin improved by 90 basis points in the quarter, driven by SG&A margin improvement [38] Business Line Data and Key Metrics Changes - Specialty medicines sales grew by 16%, with significant contributions from oncology (up 39%) and respiratory immunology (up 15%) [10][12] - HIV portfolio delivered 12% growth, primarily driven by long-acting injectables [21] - Vaccine sales increased by 2%, with strong demand for Shingrix, particularly in Europe [29] Market Data and Key Metrics Changes - In the U.S., Shingrix penetration is now at 43% of the eligible older adult population, with international sales accounting for around 70% of global Shingrix sales [30] - The oncology portfolio is expected to be a material growth driver, with Glenrep approved in eight markets [16][18] Company Strategy and Development Direction - The company is focused on investing for growth, with a pipeline of 15 scale opportunities expected to launch before 2031 [5][7] - Continued emphasis on business development to expand the pipeline, particularly in oncology and respiratory [6][84] - The company is committed to optimizing supply capacity and investing $30 billion in R&D and advanced manufacturing in the U.S. over the next five years [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on long-term commitments for growth, with an upgraded guidance for the year [8][42] - The company remains cautious about the near-term outlook for vaccines in the U.S. but is optimistic about long-term prospects [33] Other Important Information - The company has secured four FDA approvals this year and expects a fifth before year-end [4] - The company is upgrading its full-year sales expectations from 3-5% to 6-7% [42] Q&A Session Summary Question: Revenue gap between market expectations and GSK's target for 2031 - Management acknowledged the gap and highlighted underappreciated assets in oncology and respiratory as key areas for growth [51][54] Question: Future strategy updates - Management indicated that more details on the strategy would be provided at the full-year results, with confidence in achieving the £40 billion target by 2031 [52][58] Question: Shingrix growth expectations - Management confirmed that growth in Europe is expected to continue, with a focus on expanding immunization rates [60][66] Question: Investment in R&D and operational expenses - Management confirmed that R&D investment will continue to grow ahead of sales, with significant investments in new product launches [68] Question: Updates on Glenrep and Depamokimab - Management shared insights on the early experiences with Glenrep in Europe and the competitive landscape for Depamokimab, emphasizing the potential for both products [72][76]

Company Performance - GSK reported quarterly earnings of $1.48 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and up from $1.27 per share a year ago, representing an earnings surprise of +17.46% [1] - The company posted revenues of $11.52 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.23%, compared to year-ago revenues of $10.42 billion [2] - Over the last four quarters, GSK has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - GSK shares have increased approximately 29.2% since the beginning of the year, outperforming the S&P 500's gain of 17.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.68 on revenues of $11.01 billion, and for the current fiscal year, it is $4.37 on revenues of $42.56 billion [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which GSK belongs, is currently in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

29 October 2025 Q3 2025 Results Conference call and webcast for investors and analysts gsk.com Agenda Q3 2025 strong performance improves further Emma Walmsley Performance: growth drivers 2 Cautionary statement regarding forward-looking statements Luke Miels and Deborah Waterhouse Q3 2025 financial performance Julie Brown Summary and Q&A Emma Walmsley, Luke Miels, Deborah Waterhouse, Julie Brown, Tony Wood and David Redfern This presentation may contain forward-looking statements. Forward-looking statements ...

Core Insights - GSK raised its 2025 sales and earnings forecasts due to strong growth in its specialty HIV and cancer medicines, leading to a significant increase in share price [1][2] - Despite a decline in U.S. sales of the shingles vaccine Shingrix, GSK's shares have increased by nearly 4% this year, contributing to a total gain of around 25% [1] Sales Performance - Overall vaccine sales reached £2.68 billion in the quarter ending September 30, surpassing analyst expectations of £2.55 billion [3] - Sales outside the U.S. were a key driver of growth, while U.S. sales of Shingrix fell by 15% [3][4] - GSK's influenza vaccine sales also declined in the U.S. due to increased competition [4] Future Outlook - GSK's CEO transition to Luke Miels is anticipated to bring new strategies to navigate U.S. tariffs and offset revenue declines from expiring patents [2][5] - The company aims for annual revenue exceeding £40 billion ($54 billion) by 2031, with current estimates around £34 billion [5] - GSK expects annual revenue growth of 6% to 7% and core earnings per share growth of 10% to 12%, an increase from previous forecasts of 3% to 5% revenue growth and 6% to 8% earnings growth [5][6] Financial Performance - GSK reported core earnings per share of 55 pence on sales of £8.55 billion for the quarter, exceeding analyst expectations of 47.1 pence on £8.24 billion [6] - Revenue in the U.S. business grew by 7% at constant exchange rates, totaling £4.55 billion [6]

Core Insights - GSK has raised its full-year profit and sales forecasts due to increased demand for its HIV and immunology drugs [1] - The company reported Q3 revenue of £8.55 billion, a 4.9% year-over-year increase, exceeding expectations by £300 million [1] - GSK anticipates a growth of up to 12% in adjusted earnings per share for the year, surpassing the previous maximum forecast of 8% [1] Financial Performance - Q3 revenue reached £8.55 billion, exceeding analyst expectations by £300 million [1] - Adjusted earnings per share grew by 11% to £0.55, compared to the expected £0.47 [1] - Revenue growth is projected to be as high as 7%, above prior estimates [1] Leadership Transition - Luke Mills will take over as CEO in January, facing challenges similar to those of current CEO Emma Walmsley [1] - The new CEO is tasked with convincing investors that the company's pipeline can achieve over £40 billion ($53 billion) in sales by 2031 [1] Product Portfolio and Market Performance - GSK's specialty drug portfolio, including treatments for HIV, cancer, and lupus, is expected to drive growth [1] - Demand in Europe for drugs like Dovato and Benlysta has boosted sales, alongside a strong performance in the vaccine business [1] - GSK has entered two early-stage deals to enhance its product pipeline ahead of the patent expiration of its best-selling HIV drug [1] Regulatory Environment - Unlike local competitor AstraZeneca, GSK has not reached an agreement with the Trump administration regarding price reductions in exchange for immunity from new industry tariffs [2] - The company has factored in the impact of existing tariffs and a potential 15% tariff in Europe into its full-year guidance [2]

Core Insights - GSK reported a turnaround in Q3, achieving profitability with a significant increase in revenue compared to the previous year [1] - The company posted a profit of £2.01 billion for the three months ending September 30, compared to a loss of £58 million in the same period last year [1] - Earnings per share improved from a loss of £0.014 to a profit of £0.491 [1] Financial Guidance - For the full year 2025, GSK raised its revenue growth guidance to 6% to 7% [1] - Core operating profit guidance was also increased to 9% to 11% [1] - Earnings per share guidance was adjusted upward to 10% to 12% [1]

Core Viewpoint - The drugmaker has revised its sales growth expectations for 2025, now forecasting an increase of 6% to 7% when excluding currency movements, an improvement from the previous estimate of 3% to 5% [1] Summary by Category - **Sales Growth Expectations** - The company anticipates a sales growth of 6% to 7% for 2025, excluding the impact of currency fluctuations [1] - This is a notable increase from the earlier forecast range of 3% to 5% [1]