GILD Q2 Deep Dive: HIV Franchise Drives Growth, New Launches and Pipeline in Focus

Biopharmaceutical company Gilead Sciences (NASDAQ:GILD) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 1.8% year on year to $7.08 billion. On the other hand, the company’s full-year revenue guidance of $28.5 billion at the midpoint came in 0.8% below analysts’ estimates. Its non-GAAP profit of $2.01 per share was 2.7% above analysts’ consensus estimates.

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StockStory’s Take

Gilead Sciences delivered a better-than-expected second quarter, propelled by the strong performance of its HIV portfolio and the launch of Yeztugo, its twice-yearly injectable for HIV prevention. Management attributed the 7% year-over-year HIV growth to robust demand for Biktarvy and Descovy, along with effective commercial execution. CEO Daniel O’Day highlighted, “Biktarvy continues to lead in share in major markets around the world,” and described Descovy’s quarter as its “strongest ever,” supported by heightened awareness and growing use of pre-exposure prophylaxis (PrEP). The company also noted that new product launches, particularly Yeztugo, contributed to positive momentum, while declines in Veklury sales due to reduced COVID-19 hospitalizations partially offset gains in the base business.

Looking ahead, Gilead’s updated outlook reflects expectations for continued HIV franchise growth, with incremental contributions from Yeztugo as access expands in both U.S. and international markets. Management cited plans for up to eight additional HIV product launches by 2033, including new regimens in both treatment and prevention. CFO Andrew Dickinson stated, “Our disciplined operating model positions us well for near-term and long-term growth,” while acknowledging potential headwinds from policy changes and competitive pressures in cell therapy. The company is also monitoring the evolving reimbursement and regulatory landscape, particularly around Medicare Part D and potential changes to PrEP guidelines, which could impact access and uptake.

Key Insights from Management’s Remarks

Management credited the quarter’s results to strong HIV demand, rapid execution on new launches, and advances in oncology and cell therapy, while also noting headwinds from product mix and evolving policy landscape.

• HIV franchise momentum: Demand for Biktarvy and Descovy led growth, with Biktarvy expanding its U.S. market share above 51% and Descovy achieving 35% year-over-year growth. Management attributed this to greater PrEP awareness and improved access, with the U.S. PrEP market now exceeding 500,000 active users.

• Yeztugo launch progress: The FDA approval and U.S. launch of Yeztugo, a twice-yearly injectable for HIV prevention, was described as “one of the most significant milestones in HIV,” with rapid uptake and high prescriber awareness (72% unaided at launch). Management expects access to reach 75% of covered lives within six months and 90% within a year, aided by early wins in key states and a dedicated field reimbursement team.

• Oncology advances: Trodelvy posted double-digit growth, buoyed by positive Phase III data in first-line metastatic triple-negative breast cancer. Management sees potential for Trodelvy to move into earlier lines of therapy, which could double its addressable patient population.

• Liver and cell therapy dynamics: Livdelzi nearly doubled revenue sequentially, driven by new patient starts, while cell therapy faced competitive pressures but saw encouraging signs with Yescarta and Tecartus. Management noted that recent regulatory changes and data supporting outpatient administration could help broaden cell therapy adoption over time.

• R&D and pipeline updates: The quarter was marked by multiple pipeline milestones, including the initiation of a Phase III trial for once-yearly lenacapavir (PURPOSE-365), progress in next-generation HIV regimens, and pivotal updates pending for cell therapy candidates like anito-cel. Management continues to invest in both late-stage and early pipeline programs to maintain long-term growth.

Drivers of Future Performance

Gilead’s outlook is shaped by continued HIV product momentum, pipeline execution, and the evolving reimbursement environment for both HIV and oncology portfolios.

• HIV growth and product launches: Management expects the HIV portfolio to remain the primary growth driver, supported by the ramp-up of Yeztugo and continued strength in Biktarvy and Descovy. The company plans up to eight additional HIV product launches by 2033, with five possible before 2030, spanning both prevention and treatment segments.

• Reimbursement and policy risks: The company is closely monitoring potential changes in U.S. healthcare policy, including Medicare Part D redesign and Medicaid reforms such as Most Favored Nation (MFN) proposals. Management indicated these could impact revenue, particularly in the HIV franchise, but noted that safety net programs and patient access initiatives should help mitigate near-term effects.

• Pipeline execution in oncology and cell therapy: The near-term pipeline includes regulatory filings for Trodelvy in first-line metastatic breast cancer and pivotal data for anito-cel in multiple myeloma. Success in these programs could significantly expand Gilead’s oncology revenue base, but management acknowledged the competitive landscape and regulatory uncertainties as ongoing risks.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the adoption curve and access expansion for Yeztugo in both U.S. and international PrEP markets, (2) pivotal clinical updates for ARTISTRY-1 and ARTISTRY-2, which could support new HIV treatment regimens, and (3) regulatory filings and data readouts for Trodelvy and anito-cel in oncology and cell therapy. Progress in reimbursement negotiations and updates on policy risk management will also be important indicators of execution.

Gilead Sciences currently trades at $120.87, up from $110.36 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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