GILD Stock Rises on Q2 Earnings and Sales Beat, '25 View Up

Gilead Sciences (GILD) reported better-than-expected Q2 2025 results, with adjusted EPS of $2.01 and total revenues of $7.1 billion, primarily driven by robust sales in its core HIV franchise, including Biktarvy and Descovy, and continued growth from oncology drug Trodelvy. Consequently, the company raised its full-year 2025 guidance for both product sales and adjusted EPS, signaling strong operational momentum. This positive financial performance, coupled with the recent FDA approval of Yeztugo (lenacapavir) as the first twice-yearly injectable HIV PrEP, fueled a 2.36% rise in after-market trading and contributed to GILD's 19.4% year-to-date stock surge.

Analysis

Gilead Sciences reported strong second-quarter 2025 results, with adjusted EPS of $2.01 and revenue of $7.1 billion, both surpassing consensus estimates. The positive performance, which triggered a 2.36% after-market stock increase, was primarily fueled by the outperformance of its core HIV franchise. HIV product sales grew 7% year-over-year to $5.1 billion, led by a 9% increase in flagship therapy Biktarvy sales to $3.5 billion and a 35% surge in Descovy sales to $653 million. The oncology drug Trodelvy also contributed significantly with a 14% sales increase to $364 million. This strength offset notable weaknesses, including a 44% plunge in Veklury sales as COVID-19 hospitalizations declined, and a 7% contraction in Cell Therapy sales due to competitive headwinds. Critically, the company raised its full-year 2025 guidance, increasing its forecast for product sales excluding Veklury to a range of $27.3 billion to $27.7 billion and adjusted EPS to $7.95-$8.25, signaling strong underlying business momentum. The strategic outlook is further bolstered by the recent FDA approval of Yeztugo (lenacapavir), the first twice-yearly injectable for HIV prevention, which fortifies Gilead’s market-leading HIV portfolio against competitors like GSK and addresses a key market need for long-acting treatment options.

Key Decisions for Investors

• Investors should focus on the robust performance of the core HIV franchise, as its 7% YoY growth and strong guidance upgrade are the primary drivers of value, effectively offsetting the expected decline in Veklury sales.
• The recent FDA approval of the twice-yearly HIV PrEP injectable, Yeztugo, is a significant catalyst; its market adoption and sales trajectory should be monitored closely as a key indicator of future growth and competitive positioning against GSK.
• While the HIV and oncology segments show strength, it is prudent to remain cautious of the persistent underperformance in the Cell Therapy division, where sales fell 7% due to competitive pressures, and the pricing challenges impacting the Liver Disease portfolio.
• Consider the 14% growth in Trodelvy and the new oncology partnership with Kymera as positive long-term developments, but recognize that the company's near-term performance remains overwhelmingly dependent on the execution within its HIV business.