GILD Q3 Earnings and Sales Beat Estimates, HIV and Livdelzi Sales Grow

Gilead Sciences, Inc. GILD posted better-than-expected third-quarter 2025 results and lifted the lower end of its product sales. Adjusted earnings per share (EPS) of $2.47 beat the Zacks Consensus Estimate of $2.15 and were up from $2.02 a year ago.

Total revenues of $7.8 billion also beat the Zacks Consensus Estimate of $7.5 billion. Revenues were up 3% year over year, driven by higher HIV and Livdelzi (seladelpar) sales.

However, the stock was down in after-market trading on Oct. 30. The stock is also down in pre-market trading on Oct. 31. This can be attributed to a decline in total product sales.

Gilead’s shares have surged 28.2% year to date compared with the industry's growth of 12%.

GILD’s Q3 Highlights

Total revenues comprise product sales and royalty, contract and other revenues.

While revenues increased year over year, driven by higher royalty, contract and other revenues, product sales were down 2% to $7.3 billion due to lower Veklury (remdesivir) and Cell Therapy sales.

Excluding Veklury, product sales increased 4% to $7.1 billion.

HIV product sales grew 4% year over year to $5.3 billion, primarily driven by increased demand and favorable inventory dynamics. The figure beat both the Zacks Consensus Estimate and our model estimate of $5.2 billion.

Flagship HIV therapy Biktarvy’s sales increased 6% year over year to $3.7 billion, driven by higher demand and favorable inventory dynamics. The reported number beat both the Zacks Consensus Estimate of $3.6 billion and our model estimate of $3.65 billion.

Per GILD, Biktarvy accounts for over 52% share of the treatment market in the United States, and continues to be the market leader in major markets around the world.

Descovy (FTC 200 mg/TAF 25 mg) sales increased 20% year over year to $701 million, driven by higher demand. The reported number beat the Zacks Consensus Estimate of $629 million and our model estimate of $633 million. Descovy accounts for more than 45% of the U.S. market share in pre-exposure prophylaxis (PrEP).

The newly approved Yeztugo (lenacapavir) for PrEP raked in sales of $39 million in the third quarter.

The Liver Disease portfolio sales, which include chronic HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV), increased 12% to $819 million, primarily driven by higher demand for Livdelzi for the treatment of primary biliary cholangitis (PBC).

Veklury sales plunged 60% to $277 million, primarily due to lower rates of COVID-19-related hospitalizations. Sales missed the Zacks Consensus Estimate of $344 million and our model estimate of $368 million.

Cell Therapy product (comprising Yescarta and Tecartus) sales decreased 11% to $432 million due to competitive headwinds. The figure missed the Zacks Consensus Estimate of $476 million and our model estimate of $461 million.

Yescarta sales decreased 10% year over year to $349 million due to lower demand. Tecartus (adult acute lymphoblastic leukemia) sales decreased 15% to $83 million due to lower demand.

Breast cancer drug Trodelvy’s sales increased 7% year over year to $357 million, driven by higher demand. Trodelvy's sales missed the Zacks Consensus Estimate of $369 million but matched our model estimate.

GILD’s Cost Analysis

Adjusted product gross margin was relatively flat year over year at 86.5%.

Research and development expenses totaled $1.3 billion, down from $1.4 billion in the year-ago quarter due to lower study-related and clinical manufacturing expenses.

SG&A expenses amounted to $1.4 billion, flat year over year as lower corporate expenses were largely offset by higher HIV promotional expenses.

Acquired IPR&D expenses totaled $170 million in the reported quarter, primarily reflecting an upfront payment of $120 million related to Gilead’s collaboration with Shenzhen Pregene Biopharma Co., Ltd.

During the third quarter of 2025, Gilead paid dividends of $1.0 billion and repurchased $435 million of common stock.

As of Sept. 30, 2025, Gilead had $9.4 billion in cash, cash equivalents and marketable debt securities compared with $7.1 billion as of Jun. 30, 2025.

GILD Updates 2025 Guidance

Gilead now expects product sales to be between $28.4 billion and $28.7 billion (previous guidance: $28.3-$28.7 billion). The Zacks Consensus Estimate for 2025 revenues is pinned at $28.8 billion.

Total product sales, excluding Veklury, are expected between $27.4 billion and $27.7 billion (previous guidance: $27.3-$27.7 billion). Total Veklury sales are still estimated to be $1 billion.

Adjusted EPS is now anticipated to be in the range of $8.05-$8.25 (previous guidance: $7.95-$8.25). The Zacks Consensus Estimate for 2025 EPS is pegged at $8.07.

Key Pipeline and Regulatory Updates From GILD

GILD announced settlement agreements to resolve Biktarvy patent litigation with generic manufacturers Lupin Ltd., Cipla Ltd. and Laurus Labs Ltd.

Per the terms of the settlement, the earliest date the three generic manufacturers can market a generic version of full dose Biktarvy in the United States is April 1, 2036, subject to standard acceleration provisions.

GILD had earlier projected Biktarvy to lose exclusivity in December 2033.

GILD obtained marketing authorization for Yeytuo (lenacapavir) in the EU for use as PrEP to reduce the risk of sexually acquired HIV-1 in adults and adolescents with increased HIV-1 acquisition risk.

GILD also announced the acquisition of Interius BioTherapeutics, Inc., a privately held biotechnology company developing in vivo therapeutics, for $350 million.

The acquisition complements Kite's cell therapy expertise by integrating Interius's in vivo platform.

The company has also filed for FDA approval of bulevirtide for the treatment of chronic hepatitis delta virus.

Our Take on GILD’s Q3 Performance

Gilead’s third-quarter results were good. HIV growth driver Biktarvy maintained its dominant position despite the Medicare Part D redesign. Descovy, too, put up a strong performance.

Gilead Sciences, Inc. Price, Consensus and EPS Surprise

Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote

It has been an eventful year for GILD so far. The FDA approval of lenacapavir under the brand name Yeztugo solidifies GILD’s HIV portfolio as its other prevention drug, Truvada, faces generic competition.

The initial uptake of Yeztugo looks good. Yeztugo has a competitive advantage as it needs to be taken only twice a year, unlike daily oral pills, and addresses a broad population.

Gilead now expects HIV revenue growth in 2025 to approximately 5% (previous guidance: 3%), despite the $900 million headwind for this business associated with the Medicare Part D redesign.

Approval of better HIV treatments should strengthen the HIV franchise in the wake of increasing competition from the likes of GSK plc GSK.

GILD expects to provide update from phase III ARTISTRY-1 and ARTISTRY-2 studies, evaluating an investigational single-tablet regimen of bictegravir and lenacapavir, before the end of the year.

GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato.

Breast cancer drug Trodelvy also continues to gain market share in the second-line setting. GILD has submitted two supplemental biologics license applications seeking approval of the drug for use in first-line metastatic triple-negative breast cancer patients. A potential approval in the first-line setting (regulatory decisions are expected in 2026) will boost Trodelvy sales.

Livdelzi put up a stellar performance in the quarter, propelling 12% growth in liver disease portfolio sales. Livdelzi’s performance gained on the back of strong commercial execution and some new launches outside the country. Per GILD, Livdelzi is now the market leader in second-line PBC in the United States.

However, cell therapies continue to face competitive headwinds.

GILD, in partnership with Arcellx, expects to present follow-up data from the iMMagine-1 study of its CAR T therapy, anito-cel, for patients with relapsed and/or refractory multiple myeloma at an upcoming medical meeting.

GILD’s Zacks Rank and a Stock to Consider

Gilead currently has a Zacks Rank #3 (Hold). A better ranked biotech stock is Alkermes ALKS, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkermes’ earnings per share (EPS) estimates for 2025 have inched up from $1.82 to $1.86, while those for 2026 have risen from $1.70 to $1.81 in the past 30 days. The stock has gained nearly 7.1% year to date.

Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark for the remaining occasion, delivering an average surprise of 4.58%.

 

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