Sign in

You're signed outSign in or to get full access.

GS

GILEAD SCIENCES, INC. (GILD)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $7.08B, up 2% YoY and 6% QoQ; non-GAAP diluted EPS was $2.01, flat YoY and up ~11% QoQ. Both revenue and EPS exceeded S&P Global consensus (revenue: $6.96B*, EPS: $1.96*) .
  • HIV revenue rose 7% YoY to $5.09B on strong Biktarvy ($3.53B, +9% YoY) and Descovy ($653M, +35% YoY); Veklury fell 44% YoY to $121M amid lower COVID hospitalizations .
  • FY25 guidance raised: product sales to $28.3–$28.7B (prior $28.2–$28.6B), ex‑Veklury to $27.3–$27.7B (prior $26.8–$27.2B), non‑GAAP EPS to $7.95–$8.25 (prior $7.70–$8.10); Veklury cut to ~$1.0B (prior $1.4B) .
  • Catalyst: FDA approved Yeztugo (lenacapavir) as the first and only twice‑yearly PrEP option; management emphasized “historic” potential to transform HIV prevention and is executing a robust launch and access strategy .

What Went Well and What Went Wrong

What Went Well

  • HIV franchise strength: HIV sales +7% YoY to $5.09B; Biktarvy +9% YoY to $3.53B with >51% U.S. share, and Descovy +35% YoY to $653M on demand and pricing favorability .
  • Guidance raised on base business momentum: ex‑Veklury product sales up $0.5B at midpoint, non‑GAAP EPS raised $0.25 range; CFO reiterated disciplined OpEx and ~86% non‑GAAP gross margin .
  • Transformational PrEP approval: Yeztugo FDA approval; CEO said, “This is truly a milestone moment…could bend the arc of the epidemic,” while CCO highlighted rapid early uptake and payer progress (J‑code effective Oct 1) .

What Went Wrong

  • COVID normalization: Veklury sales down 44% YoY to $121M; FY25 Veklury guidance reduced by $400M to ~$1.0B .
  • Cell therapy headwinds: Kite product sales down 7% YoY to $485M; Yescarta -5% YoY to $393M and Tecartus -14% YoY to $92M amid competitive pressures .
  • Higher R&D and IPR&D impairment: R&D expense rose to $1.49B; $190M IPR&D impairment (MYR‑related) pressured GAAP EPS, partly offset by equity gains .

Financial Results

Headline financials vs prior periods and estimates

Metric (USD)Q4 2024Q1 2025Q2 2025
Revenue ($MM)$7,569 $6,667 $7,082
GAAP Diluted EPS ($)$1.42 $1.04 $1.56
Non-GAAP Diluted EPS ($)$1.90 $1.81 $2.01
GAAP Product Gross Margin (%)79.0% 76.7% 78.7%
Non-GAAP Product Gross Margin (%)86.7% 85.5% 86.9%
GAAP Operating Margin (%)32.4% 33.6% 34.9%
Revenue Consensus Mean ($MM)$7,154*$6,823*$6,964*
EPS Consensus Mean ($)$1.70*$1.78*$1.96*
Beat/Miss vs EstimatesRevenue: Beat; EPS: BeatRevenue: Miss; EPS: BeatRevenue: Beat; EPS: Beat

Values with asterisk retrieved from S&P Global.

Q2 2025 vs Q2 2024

Metric (USD)Q2 2024Q2 2025YoY Change
Total Revenues ($MM)$6,954 $7,082 +2%
GAAP Diluted EPS ($)$1.29 $1.56 +$0.27
Non-GAAP Diluted EPS ($)$2.01 $2.01 0%
GAAP Product GM (%)77.7% 78.7% +100 bps
Non-GAAP Product GM (%)86.0% 86.9% +90 bps
GAAP Operating Margin (%)38.0% 34.9% -310 bps

Segment breakdown (Q2 2025 vs Q2 2024)

Segment ($MM)Q2 2024Q2 2025YoY Change
HIV$4,745 $5,088 +7%
Liver Disease$832 $795 -4%
Oncology$841 $849 +1%
Other$280 $202 -28%
Total ex‑Veklury$6,698 $6,934 +4%
Veklury$214 $121 -44%
Total Product Sales$6,912 $7,054 +2%
Total Revenues$6,954 $7,082 +2%

Key product KPIs (Q2 2025 vs Q2 2024)

Product ($MM)Q2 2024Q2 2025
Biktarvy$3,232 $3,530
Descovy$485 $653
Trodelvy$320 $364
Yescarta$414 $393
Tecartus$107 $92
Veklury$214 $121

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Product Sales ($B)FY 2025$28.2–$28.6 $28.3–$28.7 Raised
Product Sales ex‑Veklury ($B)FY 2025$26.8–$27.2 $27.3–$27.7 Raised
Veklury ($B)FY 2025$1.4 $1.0 Lowered
GAAP Diluted EPS ($)FY 2025$5.65–$6.05 $5.85–$6.15 Raised
Non‑GAAP Diluted EPS ($)FY 2025$7.70–$8.10 $7.95–$8.25 Raised
Non‑GAAP Product GM (%)FY 202585–86% ~86% Maintained (tightened midpoint)
Operating Income (Non‑GAAP, $B)FY 2025$12.7–$13.2 $13.0–$13.4 Raised
ETR (Non‑GAAP)FY 2025~19% ~19% Maintained
DividendQ3 2025$0.79/share $0.79/share Maintained
Share Repurchase Authorizationn/a2020 plan ongoing New $6.0B authorized New Program

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
PrEP market growth & Yeztugo launchPreparing for lenacapavir launch; PrEP market +16% YoY; plans for 75% access in 6 months, 90% in 12 months FDA approval; rapid early uptake; payer wins incl. J‑code 10/1; target 75% access at 6 months and 90% at 12 months Improving
Medicare Part D redesign impact~$1.1B total impact in 2025 (HIV ~$900M); volume offset expected; no immediate upside assumed Assumptions unchanged; HIV growth ~3% for FY25 despite redesign Neutral
Tariffs/macroTariffs manageable; FX tailwinds; IP largely U.S.-based Impact manageable; no changes to broader policy baseline in guidance Neutral
Cell therapy adoptionCompetitive pressures, bispecifics; working to reduce barriers; outpatient viability Continued headwinds; FDA REMS class removal; outpatient adoption increasing; Q2 -7% YoY Mixed
Trodelvy developmentASCENT‑04 PFS benefit; ASCENT‑03 readout expected Positive ASCENT‑03 topline; ASCENT‑04 detailed data; filing plans for 1L mTNBC Improving
Regulatory/legalEC conditional approval Livdelzi; various filings; DOJ legacy settlement accrued in 2024 Yeztugo FDA approval; CHMP positive opinion; Global Fund partnership Improving
R&D executionBroad HIV pipeline; once‑yearly lenacapavir Phase 3 planned; ARTISTRY programs ARTISTRY 1/2 updates expected; WONDERS program on hold; oncology & CAR‑T progress Mixed

Management Commentary

  • CEO: “This was a very successful second quarter…with the FDA approval of lenacapavir…Our strong growth…driven by Biktarvy, Descovy, Trodelvy and Livdelzi…we are increasing revenue and earnings guidance for the year.” .
  • CEO on Yeztugo: “This is truly a milestone moment…that could bend the arc of the epidemic.” .
  • CCO on Yeztugo launch: “Unaided awareness among HCPs was 72%…first prescription within hours…J‑code confirmed for October 1…state Medicaid wins in CA and FL.” .
  • CFO: “We are updating FY25 guidance: ex‑Veklury $27.3–$27.7B; Veklury ~$1.0B; non‑GAAP EPS $7.95–$8.25; non‑GAAP gross margin ~86%…SG&A declining mid‑ to high‑single‑digit.” .

Q&A Highlights

  • Yeztugo uptake curve and access: Management stressed early positive signals, robust field reimbursement, and payer engagement; expects staged access ramp to ~75% at 6 months and ~90% at 12 months .
  • Medicaid MFN risk: Team engaging policymakers; HIV has strong safety‑net coverage; near‑term impact not expected; HIV Medicaid mix “mid‑ to lower‑20s%” .
  • USPSTF preventive coverage: Current guidelines supportive; even if changed, Gilead expects to work with payers to preserve access; PrEP market grew pre‑guidelines .
  • Weekly HIV combo (WONDERS) clinical hold: Parsing causality; multiple molecules in portfolio; Phase 3 lenacapavir+islatravir update in 2026, launch 2027 .
  • OUS opportunity for Yeztugo: Larger ex‑U.S. potential vs Descovy given innovation and unmet need; reimbursement will take time .
  • Logistics for injectable PrEP: Offering buy‑and‑bill, specialty pharmacy, and alternate sites; cross‑functional pods support smooth customer experience .
  • Why not raise Yeztugo guidance yet: Too early (~6 weeks in); focus on expanding covered lives and pulling through scripts to injections .

Estimates Context

  • Q2 2025 actuals vs consensus: Revenue $7,082MM vs $6,964MM*; non‑GAAP EPS $2.01 vs $1.96* — both beats. Q1 2025 revenue missed ($6,667MM vs $6,823MM*), EPS beat ($1.81 vs $1.78*). Q4 2024 revenue and EPS both beat ($7,569MM vs $7,154MM*; $1.90 vs $1.70*) .
    Values with asterisk retrieved from S&P Global.

Key Takeaways for Investors

  • Base business momentum and HIV strength drove a clean top‑line and EPS beat; guidance raise underscores management confidence for 2H25 execution .
  • Yeztugo is a major multi‑year growth catalyst; early launch signals (awareness, payer wins, J‑code) point to solid adoption once coverage scales — monitor access progression and injection conversion rates in Q3/Q4 .
  • Expect continued Veklury drag (~$1.0B FY25) and Kite headwinds near term; watch outpatient adoption, label changes, and pivotal anito‑cel data later this year for cell therapy reacceleration potential .
  • Trodelvy trajectory improving with first‑line mTNBC data; filings in 2026 could expand the addressable market and duration, supporting oncology growth .
  • Operating discipline intact: ~86% non‑GAAP GM, SG&A down mid‑ to high‑single‑digits; supports margin resilience amid higher R&D and market investments .
  • Policy risks (Part D, tariffs, Medicaid MFN) remain manageable per management; limited near‑term assumption changes embedded in guidance — track updates but base case neutral .
  • Near‑term trade: Position for incremental Yeztugo launch updates and potential estimate revisions upward on HIV momentum; medium‑term thesis benefits from PrEP adoption curve, 1L Trodelvy, and anito‑cel 2026 launch potential .

Appendix: Additional Data

Detailed non‑GAAP reconciliation references

  • Non‑GAAP EPS and margin reconciliations for Q2 2025 provided in the press release/8‑K –.
  • FY25 non‑GAAP guidance reconciliations provided .

Yeztugo approval and access strategy

  • FDA approval press release with trial efficacy and access programs –.