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GILD Stock Up 7% Post Q2 Earnings: Should You Buy Now or Wait?
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Key Takeaways
Gilead posted Q2 EPS of $2.01 and revenue of $7.1B, topping estimates and driving stock higher.
HIV growth from Biktarvy, Descovy, and newly approved PrEP drug Yeztugo boosted guidance.
Trodelvy sales rose 14%, offsetting declines in the cell therapy franchise.
Shares of Gilead Sciences, Inc. ((GILD - Free Report) ) gained 7.3% after the company reported solid results for the second quarter of 2025 and raised its annual guidance for 2025.
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 sales.
Concurrently, GILD raised full-year product sales and EPS guidance, citing strong HIV demand on the back of robust Biktarvy and Descovy performance so far in the year. Investors were impressed with this strong performance.
Year to date, the stock rose 28.2% compared with the industry’s 3.7% gain. The stock has also outperformed the sector and the S&P 500 index in this time frame.
Gilead Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Let's delve further into GILD’s strengths and weaknesses to analyze how to play the stock at present.
Strong HIV Franchise Performance Boosts GILD
Gilead has a market-leading portfolio of HIV treatments. This franchise put up a strong performance in the second quarter with demand-driven growth of 7% year over year, more than offsetting the anticipated headwinds from the Medicare Part D redesign.
Flagship drug Biktarvy sales grew 9% year over year in the second quarter to $3.5 billion, propelled by higher demand. Biktarvy continues to lead in share in major markets around the world.
Descovy for pre-exposure prophylaxis (PrEP) grew 35% year over year to $653 million. Per GILD, this was Descovy's strongest quarter ever, highlighting the growth of the HIV prevention market. GILD is upbeat about this growth in the HIV prevention market as it is now launching its recently approved PREP Yeztugo.
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.
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.
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.
With the approval of Yeztugo, GILD is targeting up to eight additional HIV product launches before the end of 2033, including five that would come to market by the end of 2030.
Breast Cancer Drug Trodelvy Fuels GILD’s Oncology Portfolio
Gilead’s oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business.
Breast cancer drug Trodelvy’s sales increased 14% year over year to $364 million and beat the Zacks Consensus Estimate of $324 million and our model estimate of $341 million.
The drug’s performance has been strong in second-line metastatic triple-negative breast cancer, and GILD is working towards filing an application seeking approval of Trodelvy in the first-line setting based on the results from the ASCENT-03 and ASCENT-04 trials.
Challenges for GILD’s Cell Therapy Franchise
The Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue in 2025.
Cell Therapy product sales decreased 7% to $485 million in the second quarter of 2025.
GILD’s Liver Disease Franchise Declines in Q2
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 in the second quarter.
The decline was mainly due to lower chronic hepatitis C virus (HCV) sales as pricing was 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.
For HCV, pricing in the United States was impacted by Medicare Part D redesign. Nonetheless, the uptake of Livdelzi for primary biliary cholangitis has been strong.
GILD’s Valuation and Estimate Revision
According to the price/earnings ratio, GILD’s shares currently trade at 14.18x forward earnings, lower than the large-cap pharma industry’s average of 14.45x but higher than its mean of 10.58X.
Image Source: Zacks Investment Research
Earnings estimates for GILD have moved north in the past 30 days. The bottom-line estimate for 2025 has inched up to $8.09 from $7.92, while that for 2026 has improved to $8.50 from $8.48.
Image Source: Zacks Investment Research
Stay Invested in GILD
Gilead’s efforts to constantly innovate its HIV portfolio should enable it to maintain growth amid competition from GSK plc ((GSK - Free Report) ). The approval of Yeztugo for PrEP is a major boost for the company.
GSK’s HIV portfolio sales are being driven by strong patient demand for Cabenuva, Apretude and Dovato.
GILD has also collaborated with Merck ((MRK - Free Report) ) to evaluate the investigational combination of islatravir and lenacapavir for the treatment of HIV, and a phase III update is expected in 2026.
Gilead’s strategic deals and acquisitions to diversify its business are encouraging as well. However, we recommend prospective investors to wait as the stock is currently trading near its 52-week high of $121.83.
For existing investors, a strong positive factor is the company’s attractive dividend yield. Gilead has been consistently increasing and paying out dividends. During the second quarter of 2025, Gilead paid dividends of $994 million and repurchased $527 million of common stock.
Its strong cash position (as of June 30, 2025, GILD had $7.1 billion of cash, cash equivalents and marketable debt securities) indicates that the current yield of 2.67% is sustainable.
Image: Shutterstock
GILD Stock Up 7% Post Q2 Earnings: Should You Buy Now or Wait?
Key Takeaways
Shares of Gilead Sciences, Inc. ((GILD - Free Report) ) gained 7.3% after the company reported solid results for the second quarter of 2025 and raised its annual guidance for 2025.
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 sales.
Concurrently, GILD raised full-year product sales and EPS guidance, citing strong HIV demand on the back of robust Biktarvy and Descovy performance so far in the year. Investors were impressed with this strong performance.
Year to date, the stock rose 28.2% compared with the industry’s 3.7% gain. The stock has also outperformed the sector and the S&P 500 index in this time frame.
Gilead Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Let's delve further into GILD’s strengths and weaknesses to analyze how to play the stock at present.
Strong HIV Franchise Performance Boosts GILD
Gilead has a market-leading portfolio of HIV treatments. This franchise put up a strong performance in the second quarter with demand-driven growth of 7% year over year, more than offsetting the anticipated headwinds from the Medicare Part D redesign.
Flagship drug Biktarvy sales grew 9% year over year in the second quarter to $3.5 billion, propelled by higher demand. Biktarvy continues to lead in share in major markets around the world.
Descovy for pre-exposure prophylaxis (PrEP) grew 35% year over year to $653 million. Per GILD, this was Descovy's strongest quarter ever, highlighting the growth of the HIV prevention market. GILD is upbeat about this growth in the HIV prevention market as it is now launching its recently approved PREP Yeztugo.
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.
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.
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.
With the approval of Yeztugo, GILD is targeting up to eight additional HIV product launches before the end of 2033, including five that would come to market by the end of 2030.
Breast Cancer Drug Trodelvy Fuels GILD’s Oncology Portfolio
Gilead’s oncology portfolio, comprising the Cell Therapy franchise and breast cancer drug Trodelvy, has diversified its overall business.
Breast cancer drug Trodelvy’s sales increased 14% year over year to $364 million and beat the Zacks Consensus Estimate of $324 million and our model estimate of $341 million.
The drug’s performance has been strong in second-line metastatic triple-negative breast cancer, and GILD is working towards filing an application seeking approval of Trodelvy in the first-line setting based on the results from the ASCENT-03 and ASCENT-04 trials.
Challenges for GILD’s Cell Therapy Franchise
The Cell Therapy franchise, comprising Yescarta and Tecartus, is currently under pressure due to competitive headwinds in the United States and Europe that are expected to continue in 2025.
Cell Therapy product sales decreased 7% to $485 million in the second quarter of 2025.
GILD’s Liver Disease Franchise Declines in Q2
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 in the second quarter.
The decline was mainly due to lower chronic hepatitis C virus (HCV) sales as pricing was 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.
For HCV, pricing in the United States was impacted by Medicare Part D redesign. Nonetheless, the uptake of Livdelzi for primary biliary cholangitis has been strong.
GILD’s Valuation and Estimate Revision
According to the price/earnings ratio, GILD’s shares currently trade at 14.18x forward earnings, lower than the large-cap pharma industry’s average of 14.45x but higher than its mean of 10.58X.
Image Source: Zacks Investment Research
Earnings estimates for GILD have moved north in the past 30 days. The bottom-line estimate for 2025 has inched up to $8.09 from $7.92, while that for 2026 has improved to $8.50 from $8.48.
Image Source: Zacks Investment Research
Stay Invested in GILD
Gilead’s efforts to constantly innovate its HIV portfolio should enable it to maintain growth amid competition from GSK plc ((GSK - Free Report) ). The approval of Yeztugo for PrEP is a major boost for the company.
GSK’s HIV portfolio sales are being driven by strong patient demand for Cabenuva, Apretude and Dovato.
GILD has also collaborated with Merck ((MRK - Free Report) ) to evaluate the investigational combination of islatravir and lenacapavir for the treatment of HIV, and a phase III update is expected in 2026.
Gilead’s strategic deals and acquisitions to diversify its business are encouraging as well. However, we recommend prospective investors to wait as the stock is currently trading near its 52-week high of $121.83.
For existing investors, a strong positive factor is the company’s attractive dividend yield. Gilead has been consistently increasing and paying out dividends. During the second quarter of 2025, Gilead paid dividends of $994 million and repurchased $527 million of common stock.
Its strong cash position (as of June 30, 2025, GILD had $7.1 billion of cash, cash equivalents and marketable debt securities) indicates that the current yield of 2.67% is sustainable.
Gilead presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.