Gilead Sciences (NASDAQ:GILD) announced its second-quarter 2025 earnings and revised annual outlook after the market closed on Thursday.
The HIV drug maker reported adjusted earnings of $2.01 per share, beating the consensus of $1.94. Sales reached $7.08 billion, beating the consensus of $6.94 billion.
Total second quarter 2025 product sales increased 2%, and excluding Veklury, the sales were up 4% to $6.9 billion, primarily due to higher HIV, Livdelzi (seladelpar), and Trodelvy (sacituzumab govitecan-hziy) sales, partially offset by lower chronic hepatitis C virus (HCV) sales.
Also Read: Gilead’s Newly Approved HIV Prevention Drug Poised To Add Billions To Future Sales
Biktarvy sales increased 9% to $3.5 billion, primarily driven by higher demand.
Descovy sales increased 35% to $653 million, primarily driven by higher average realized price and demand.
The Liver Disease portfolio sales decreased 4% to $795 million, primarily driven by lower HCV sales, partially offset by increased demand for Livdelzi, Hepcludex (bulevirtide), and chronic hepatitis B virus (HBV) products.
Veklury sales decreased 44% to $121 million.
Cell Therapy product sales decreased 7% to $485 million, reflecting ongoing competitive headwinds.
Trodelvy sales increased 14% to $364 million, primarily driven by higher demand and inventory dynamics.
Product gross margin was 78.7% in the second quarter of 2025 compared to 77.7% a year ago.
Non-GAAP product gross margin was 86.9% in the second quarter 2025 compared to 86.0% in the same period in 2024. The increases were primarily driven by product mix.
Gilead authorized a new $6.0 billion stock repurchase program, with no fixed expiration, which will commence upon the completion of the previously approved program.
Guidance
Gilead Sciences raised fiscal 2025 adjusted earnings guidance from $7.70-$8.10 per share to $7.95-$8.25 compared to the consensus of $7.96.
The company also increased its 2025 sales guidance from $28.2 billion-$28.6 billion to $28.3 billion-$28.7 billion compared to the consensus of $28.65 billion.
Gilead sees Veklury sales of $1 billion, down from prior guidance of $1.4 billion.
Separately, Arcus Biosciences Inc (NASDAQ:RCUS) and Gilead agreed to not pursue a Phase 3 study for etrumadenant (adenosine A2a/A2b receptor antagonist). In June, Gilead returned its license to etrumadenant to Arcus.
In its second quarter earnings release, Arcus said it engaged with the FDA in March regarding results from the ARC-9 study evaluating etrumadenant in third-line metastatic colorectal cancer.
Although the FDA’s feedback confirmed the potential for a registrational path for this program in third-line mCRC, the decision is based on strategic priorities.
In July, Gilead Sciences announced a strategic partnership agreement with the Global Fund to Fight AIDS, Tuberculosis and Malaria to supply lenacapavir, Gilead’s twice-yearly injectable HIV-1 capsid inhibitor, for the prevention of HIV as pre-exposure prophylaxis (PrEP).
Through the agreement, Gilead will supply enough doses to reach up to two million people over three years in countries supported by the Global Fund, which will be of no profit to Gilead.
Analysts’ Take
Goldman Sachs, in an investor note on Friday, wrote, “Overall, we view the updates as positive, and expect the Yeztugo launch, in addition to potential policy dynamics to be the primary driver of stock performance as we head into the back half of the year.”
Analyst Salveen Richter updated the model for Gilead based on the second quarter EPS trends and updated guidance. Hence, the analyst maintains the Neutral rating, raising the price forecast from $100 to $105.
Truist Securities upgraded Gilead Sciences from Hold to Buy, raising the price forecast from $108 to $127.
Price Action: GILD stock is trading higher by 9.07% to $120.30 at last check Friday.
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