Gilead Sciences: HIV Leadership Outshines Decline In COVID-19 Drug Sales

Gilead Sciences (GILD) surpassed Q2 2025 analyst expectations, largely driven by robust sales of its HIV-1 therapeutic Biktarvy and successful launches of Livdelzi and lenacapavir. These strong performances, particularly lenacapavir's approval as a twice-yearly PrEP in the EU and US, are effectively offsetting declines in COVID-19 drug sales and underperforming CAR T-cell therapies, positioning GILD with an attractive risk/reward profile ahead of key clinical readouts in Q4 2025.

Analysis

Gilead Sciences (GILD) delivered a strong Q2 2025 financial performance, significantly surpassing analyst expectations. This outperformance is primarily driven by the sustained market leadership of its HIV franchise, where its flagship therapeutic, Biktarvy, achieved record sales figures. The positive results are further bolstered by the successful commercial launches of Livdelzi and lenacapavir. Notably, lenacapavir secured major regulatory approvals in both the United States (June 18) and the European Union (August 26) as the first twice-yearly pre-exposure prophylaxis (PrEP) treatment, establishing a significant competitive advantage. The strength in these core and new product areas is effectively offsetting dual headwinds from declining COVID-19 drug sales and the persistent underperformance of its CAR T-cell therapies. The stock's recent technical correction, combined with key clinical readouts anticipated in Q4 2025, presents a potentially more attractive risk/reward profile.

Key Decisions for Investors

• Investors should assess Gilead's growth profile as successfully transitioning away from pandemic-related revenue, focusing on the durable strength of its core HIV franchise and the high-growth potential of new launches like lenacapavir.
• The recent approvals for lenacapavir as a twice-yearly PrEP treatment represent a significant commercial catalyst; its initial sales trajectory and market uptake should be monitored closely.
• Attention should be paid to the upcoming key clinical readouts in Q4 2025, as positive data could serve as a near-term catalyst, while also continuing to monitor the underperforming CAR T-cell portfolio as a potential drag on valuation.