Signage is pictured in the main lobby of GSK offices in London, Britain, February 20, 2025. REUTERS/Chris J. Ratcliffe

(Reuters) -GSK raised its 2025 sales and earnings expectations on Wednesday after third-quarter results beat forecasts, helped by double-digit growth for its HIV and cancer drugs.

This is CEO Emma Walmsley's last quarterly update before Luke Miels takes over in early 2026 to steer the drugmaker through U.S. trade tariffs, pricing battles, and a push for new medicines to offset revenue declines as some top-selling medicines go off patent.

Investors are counting on Miels to lay down the path for GSK to reach its annual revenue target of more than 40 billion pounds ($53.68 billion) by 2031. Analysts currently estimate sales to be at about 34 billion pounds.

The drugmaker expects annual revenue to increase in the range of 6%-7%, and core earnings per share to increase by 10%-12%. GSK said the forecast includes any tariffs enacted so far and potential impacts from 15% tariffs on Europe.

Earlier, GSK expected revenues to grow by 3%-5% and earnings to grow by 6%-8%.

It reported core earnings per share of 55 pence on sales of 8.55 billion pounds for the quarter ended September 30, compared with 47.1 pence on sales of 8.24 billion pounds expected by analysts in a company-compiled poll.

Revenue in its U.S. business grew 7% at constant exchange rate to 4.55 billion pounds.

PRESSURE IN US SHINGLES VACCINE SALES

GSK reported a 15% drop in quarterly sales of its shingles vaccine, Shingrix, citing a slowdown in the pace of reaching "harder-to-activate unvaccinated consumers."

In the U.S., Health Secretary Robert F. Kennedy Jr has taken aim at vaccines, cutting funding for research and ousting the head of the Centers for Disease Control and Prevention, which makes vaccine recommendations.

Overall sales of GSK's vaccines for the reported quarter were 2.68 billion pounds, above analyst expectations of 2.55 billion pounds. GSK maintained its 2025 forecast for a decrease of low-single-digit percent to broadly stable vaccine revenues.

($1 = 0.7451 pounds)

(Reporting by Unnamalai L and Yadarisa Shabong in Bengaluru, Bhanvi Satija in London; Editing by Rashmi Aich)