Gilead (GILD) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Gilead Sciences (GILD) reported Q2 2025 results that exceeded analyst expectations, with revenue of $7.08 billion (+1.8% YoY) and EPS of $2.01 (flat YoY), surpassing consensus estimates by 1.95% and 3.08% respectively. While total product sales increased 2.1% to $7.05 billion, performance was mixed across segments; strong growth in HIV drug Biktarvy (+9.2%) and oncology treatment Trodelvy (+13.8%) was largely offset by significant declines in Veklury (-43.5%) and certain liver disease therapies (-31.1%). Despite the earnings beat, GILD shares have underperformed the broader market, returning -2.6% over the past month against the S&P 500's +1.2%, indicating investor focus on underlying segment trends.

Analysis

Gilead Sciences reported mixed second-quarter 2025 results, characterized by a headline beat on revenue and earnings per share that masks significant underlying product-level weakness. The company posted revenue of $7.08 billion, a modest 1.8% year-over-year increase that nonetheless surpassed consensus estimates by 1.95%, while EPS remained flat at $2.01, beating expectations by 3.08%. The primary driver of this performance was the HIV franchise, specifically the blockbuster drug Biktarvy, which generated $3.53 billion in sales, a robust 9.2% increase year-over-year. However, this strength was substantially offset by sharp, and larger-than-anticipated, declines in other key areas. Sales of the COVID-19 treatment Veklury plummeted 43.5% to $121 million, significantly missing estimates. The oncology segment presented a bifurcated picture: while Trodelvy showed strong momentum with sales growing 13.8% to $364 million, the Cell Therapy division faltered, with Yescarta sales declining 5.1% and Tecartus sales falling 14%. The stock's recent underperformance, returning -2.6% over the past month against the S&P 500's gain, suggests investors are focused on these deteriorating segments and the flat earnings growth rather than the top-line beat.

Key Decisions for Investors

• Investors should weigh the continued strength of the core HIV franchise, led by Biktarvy, against the accelerating declines in legacy products and the unexpected weakness in the Cell Therapy growth pillar.
• Monitor the performance of the oncology portfolio closely, as the divergence between Trodelvy's growth and the Cell Therapy unit's contraction is a critical factor for Gilead's long-term outlook.
• Given the mixed operational results and flat year-over-year earnings despite a revenue beat, maintaining a neutral position may be prudent until a more sustainable growth trajectory beyond Biktarvy becomes evident.