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GILD Stock Rises on Q2 Earnings and Sales Beat, '25 View Up
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Key Takeaways
GILD's Q2 EPS of $2.01 and revenues of $7.1B beat estimates, driven by HIV and Trodelvy sales.
Biktarvy and Descovy led HIV sales gains, with Biktarvy now holding 51% U.S. treatment market share.
GILD raised full-year product sales and EPS guidance, citing strong HIV demand and pipeline momentum.
Gilead Sciences, Inc. ((GILD - Free Report) ) posted better-than-expected second-quarter 2025 results and upped its annual guidance. Adjusted earnings per share (EPS) of $2.01 beat the Zacks Consensus Estimate of $1.95 and remained flat year over year.
Total revenues of $7.1 billion also beat the Zacks Consensus Estimate of $6.9 billion. Revenues were up 2% year over year, driven by higher HIV, Livdelzi (seladelpar) and Trodelvy (sacituzumabgovitecan-hziy) sales.
Consequently, the stock rose 2.36% in after-market trading on Aug. 7. The stock is also up in pre-market trading on Aug 8.
Gilead’s shares have surged 19.4% year to date against the industry's decline of 1.2%.
Image Source: Zacks Investment Research
GILD’s Q2 Highlights
Product sales increased 2% year over year to $7.1 billion. Excluding Veklury, product sales increased 4% to $6.9 billion.
HIV product sales grew 7% year over year to $5.1 billion, primarily driven by increased demand and higher average realized price. The figure beat both the Zacks Consensus Estimate and our model estimate of $4.8 billion.
Flagship HIV therapy Biktarvy’s sales increased 9% year over year to $3.5 billion, driven by higher demand. The reported number beat both the Zacks Consensus Estimate and our model estimate of $3.4 billion.
Per GILD, Biktarvy accounts for over 51% share of the treatment market in the United States, and continues to be the market leader in major markets around the world.
Descovy (FTC 200 mg/TAF 25 mg) sales increased 35% year over year to $653 million, driven by higher demand and average realized price. The reported number beat the Zacks Consensus Estimate of $577 million and our model estimate of $533 million. Descovy maintained over 40% of the U.S. market share in pre-exposure prophylaxis (PrEP).
However, the Liver Disease portfolio sales, which include chronic HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV), decreased 4% to $795 million. The decline was mainly due to lower chronic hepatitis C virus (HCV) sales as pricing has been impacted on a year-over-year basis by Medicare Part D redesign in the United States. This decline was partially offset by increased demand for Livdelzi, Hepcludex (bulevirtide) and chronic hepatitis B virus (HBV) products.
Veklury sales plunged 44% to $121 million, primarily due to lower rates of COVID-19-related hospitalizations. Sales missed the Zacks Consensus Estimate of $211 million and our model estimate of $178 million.
Cell Therapy product (comprising Yescarta and Tecartus) sales decreased 7% to $485 million due to competitive headwinds. The figure missed the Zacks Consensus Estimate of $490 million and our model estimate of $486 million.
Yescarta sales decreased 5% year over year to $393 million due to lower demand. Tecartus (adult acute lymphoblastic leukemia) sales decreased 14% to $92 million due to lower demand.
Breast cancer drug Trodelvy’s sales increased 14% year over year to $364 million driven by higher demand. Trodelvy's sales beat the Zacks Consensus Estimate of $324 million and our model estimate of $341 million.
GILD’s Cost Analysis
Adjusted product gross margin inched up to 86.9% from 86% in the year-ago quarter due to product mix.
Research and development expenses totaled $1.5 billion, up from $1.3 billion in the year-ago quarter due to higher clinical manufacturing activities.
SG&A expenses amounted to $1.4 billion, flat year over year as higher promotional expenses offset by lower corporate expenses.
Acquired IPR&D expenses were $61 million in the reported quarter primarily reflecting expenses related to the recently announced strategic partnership with Kymera Therapeutics, Inc. ((KYMR - Free Report) ).
As of Jun 30, 2025, Gilead had cash and cash equivalents of $7.1 billion compared with $7.9 billion as of Mar. 31, 2025.
GILD Ups 2025 Guidance
Gilead now expects product sales to be between $28.3 billion and $28.7 billion (previous guidance: $28.2-$28.6 billion). The Zacks Consensus Estimate for 2025 revenues is pinned at $28.7 billion.
Total product sales, excluding Veklury, are expected between $27.3 billion and $27.7 billion (previous guidance: between $26.8 billion and $27.2 billion). Total Veklury sales are now estimated to be $1 billion (previous guidance: $1.4 billion).
Adjusted EPS is now anticipated to be in the range of $7.95-$8.25 (previous guidance: $7.70-$8.10). The Zacks Consensus Estimate for 2025 EPS is pegged at $8.02.
Key Pipeline Updates From GILD
The company recently obtained FDA approval for its twice-yearly injectable HIV-1 capsid inhibitor, lenacapavir, for the prevention of HIV. The treatment was approved under the brand name Yeztugo. This groundbreaking injectable therapy marks the first and only twice-yearly PrEP option available in the United States.
Gilead also received a positive opinion under accelerated review from the European Medicines Agency’s Committee for Medicinal Products for Human Use recommending lenacapavir for use as PrEP to reduce the risk of sexually acquired HIV-1 in adults and adolescents with increased HIV-1 acquisition risk.
Gilead and Kymera entered into an exclusive option and license agreement to accelerate the development and commercialization of a novel molecular glue degrader (MGD) program targeting cyclin-dependent kinase 2 (CDK2) with broad oncology treatment potential, in breast cancer and other solid tumors.
Per the companies, CDK2-directed MGDs are a new type of drug designed to remove CDK2, a key contributor to tumor growth, rather than just inhibiting its function.
Under the terms of the agreement, Kymera will receive an upfront payment of $85 million and potential option exercise payments. The total payments will range up to $750 million.
Our Take on GILD’s Performance
Gilead’s strong second-quarter results were impressive. HIV growth driver Biktarvy maintained its dominant position despite the Medicare Part D redesign. Descovy, too, put up a strong performance.
GILD now expects HIV sales to grow approximately 3% in 2025 from its prior assumption of flat revenue growth, driven by strong Biktarvy and Descovy performance so far this year.
It has been an eventful year for GILD so far. The recent FDA approval of lenacapavir under the brand name Yeztugo solidifies GILD’s HIV portfolio as its other prevention drug, Truvada, faces generic competition.
At present, there are two FDA-approved daily oral medications for PrEP — Truvada and Descovy.
As the first long-acting injectable PrEP administered just twice a year, Yeztugo addresses persistent barriers, such as challenges with daily oral PrEP, adherence, stigma and healthcare access, which have limited broader PrEP adoption.
Yeztugo has a competitive advantage as it needs to be taken only twice a year, unlike daily oral pills, and addresses a broad population.
The European Medicines Agency has also validated the Marketing Authorization Application for twice-yearly lenacapavir for HIV prevention.
Approval of better HIV treatments should strengthen the HIV franchise in the wake of increasing competition from the likes of GSK plc ((GSK - Free Report) ).
GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato.
Breast cancer drug Trodelvy also continues to gain market share in the second-line setting. GILD is also working toward filing an application for approval in the first-line setting.
However, cell therapies continue to face competitive headwinds.
Image: Bigstock
GILD Stock Rises on Q2 Earnings and Sales Beat, '25 View Up
Key Takeaways
Gilead Sciences, Inc. ((GILD - Free Report) ) posted better-than-expected second-quarter 2025 results and upped its annual guidance. Adjusted earnings per share (EPS) of $2.01 beat the Zacks Consensus Estimate of $1.95 and remained flat year over year.
Total revenues of $7.1 billion also beat the Zacks Consensus Estimate of $6.9 billion. Revenues were up 2% year over year, driven by higher HIV, Livdelzi (seladelpar) and Trodelvy (sacituzumab govitecan-hziy) sales.
Consequently, the stock rose 2.36% in after-market trading on Aug. 7. The stock is also up in pre-market trading on Aug 8.
Gilead’s shares have surged 19.4% year to date against the industry's decline of 1.2%.
Image Source: Zacks Investment Research
GILD’s Q2 Highlights
Product sales increased 2% year over year to $7.1 billion. Excluding Veklury, product sales increased 4% to $6.9 billion.
HIV product sales grew 7% year over year to $5.1 billion, primarily driven by increased demand and higher average realized price. The figure beat both the Zacks Consensus Estimate and our model estimate of $4.8 billion.
Flagship HIV therapy Biktarvy’s sales increased 9% year over year to $3.5 billion, driven by higher demand. The reported number beat both the Zacks Consensus Estimate and our model estimate of $3.4 billion.
Per GILD, Biktarvy accounts for over 51% share of the treatment market in the United States, and continues to be the market leader in major markets around the world.
Descovy (FTC 200 mg/TAF 25 mg) sales increased 35% year over year to $653 million, driven by higher demand and average realized price. The reported number beat the Zacks Consensus Estimate of $577 million and our model estimate of $533 million. Descovy maintained over 40% of the U.S. market share in pre-exposure prophylaxis (PrEP).
However, the Liver Disease portfolio sales, which include chronic HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV), decreased 4% to $795 million. The decline was mainly due to lower chronic hepatitis C virus (HCV) sales as pricing has been impacted on a year-over-year basis by Medicare Part D redesign in the United States. This decline was partially offset by increased demand for Livdelzi, Hepcludex (bulevirtide) and chronic hepatitis B virus (HBV) products.
Veklury sales plunged 44% to $121 million, primarily due to lower rates of COVID-19-related hospitalizations. Sales missed the Zacks Consensus Estimate of $211 million and our model estimate of $178 million.
Cell Therapy product (comprising Yescarta and Tecartus) sales decreased 7% to $485 million due to competitive headwinds. The figure missed the Zacks Consensus Estimate of $490 million and our model estimate of $486 million.
Yescarta sales decreased 5% year over year to $393 million due to lower demand. Tecartus (adult acute lymphoblastic leukemia) sales decreased 14% to $92 million due to lower demand.
Breast cancer drug Trodelvy’s sales increased 14% year over year to $364 million driven by higher demand. Trodelvy's sales beat the Zacks Consensus Estimate of $324 million and our model estimate of $341 million.
GILD’s Cost Analysis
Adjusted product gross margin inched up to 86.9% from 86% in the year-ago quarter due to product mix.
Research and development expenses totaled $1.5 billion, up from $1.3 billion in the year-ago quarter due to higher clinical manufacturing activities.
SG&A expenses amounted to $1.4 billion, flat year over year as higher promotional expenses offset by lower corporate expenses.
Acquired IPR&D expenses were $61 million in the reported quarter primarily reflecting expenses related to the recently announced strategic partnership with Kymera Therapeutics, Inc. ((KYMR - Free Report) ).
As of Jun 30, 2025, Gilead had cash and cash equivalents of $7.1 billion compared with $7.9 billion as of Mar. 31, 2025.
GILD Ups 2025 Guidance
Gilead now expects product sales to be between $28.3 billion and $28.7 billion (previous guidance: $28.2-$28.6 billion). The Zacks Consensus Estimate for 2025 revenues is pinned at $28.7 billion.
Total product sales, excluding Veklury, are expected between $27.3 billion and $27.7 billion (previous guidance: between $26.8 billion and $27.2 billion). Total Veklury sales are now estimated to be $1 billion (previous guidance: $1.4 billion).
Adjusted EPS is now anticipated to be in the range of $7.95-$8.25 (previous guidance: $7.70-$8.10). The Zacks Consensus Estimate for 2025 EPS is pegged at $8.02.
Key Pipeline Updates From GILD
The company recently obtained FDA approval for its twice-yearly injectable HIV-1 capsid inhibitor, lenacapavir, for the prevention of HIV. The treatment was approved under the brand name Yeztugo. This groundbreaking injectable therapy marks the first and only twice-yearly PrEP option available in the United States.
Gilead also received a positive opinion under accelerated review from the European Medicines Agency’s Committee for Medicinal Products for Human Use recommending lenacapavir for use as PrEP to reduce the risk of sexually acquired HIV-1 in adults and adolescents with increased HIV-1 acquisition risk.
Gilead and Kymera entered into an exclusive option and license agreement to accelerate the development and commercialization of a novel molecular glue degrader (MGD) program targeting cyclin-dependent kinase 2 (CDK2) with broad oncology treatment potential, in breast cancer and other solid tumors.
Per the companies, CDK2-directed MGDs are a new type of drug designed to remove CDK2, a key contributor to tumor growth, rather than just inhibiting its function.
Under the terms of the agreement, Kymera will receive an upfront payment of $85 million and potential option exercise payments. The total payments will range up to $750 million.
Our Take on GILD’s Performance
Gilead’s strong second-quarter results were impressive. HIV growth driver Biktarvy maintained its dominant position despite the Medicare Part D redesign. Descovy, too, put up a strong performance.
GILD now expects HIV sales to grow approximately 3% in 2025 from its prior assumption of flat revenue growth, driven by strong Biktarvy and Descovy performance so far this year.
It has been an eventful year for GILD so far. The recent FDA approval of lenacapavir under the brand name Yeztugo solidifies GILD’s HIV portfolio as its other prevention drug, Truvada, faces generic competition.
At present, there are two FDA-approved daily oral medications for PrEP — Truvada and Descovy.
As the first long-acting injectable PrEP administered just twice a year, Yeztugo addresses persistent barriers, such as challenges with daily oral PrEP, adherence, stigma and healthcare access, which have limited broader PrEP adoption.
Yeztugo has a competitive advantage as it needs to be taken only twice a year, unlike daily oral pills, and addresses a broad population.
The European Medicines Agency has also validated the Marketing Authorization Application for twice-yearly lenacapavir for HIV prevention.
Approval of better HIV treatments should strengthen the HIV franchise in the wake of increasing competition from the likes of GSK plc ((GSK - Free Report) ).
GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato.
Breast cancer drug Trodelvy also continues to gain market share in the second-line setting. GILD is also working toward filing an application for approval in the first-line setting.
However, cell therapies continue to face competitive headwinds.
GILD’s Zacks Rank
Gilead currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.