GILD Q3 Deep Dive: HIV and Liver Disease Strength Offset Oncology Headwinds

Biopharmaceutical company Gilead Sciences (NASDAQ:GILD) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 3% year on year to $7.77 billion. On the other hand, the company’s full-year revenue guidance of $28.55 billion at the midpoint came in 1.1% below analysts’ estimates. Its non-GAAP profit of $2.47 per share was 15.7% above analysts’ consensus estimates.

Is now the time to buy GILD? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Gilead Sciences’ third quarter was marked by strong sales growth in its HIV and liver disease portfolios, but the market responded negatively due to ongoing concerns about oncology revenue and broader commercial headwinds. Management credited the quarter’s performance to robust demand for Biktarvy and Descovy, as well as the successful launch of Yeztugo for HIV prevention and Livdelzi for liver disease. CEO Daniel O’Day specifically highlighted the company’s “disciplined operating expense management,” which contributed to non-GAAP EPS growth, even after excluding a one-time accounting benefit.

Looking forward, Gilead’s updated guidance reflects management’s confidence in continued HIV franchise growth, an expanding liver disease pipeline, and upcoming clinical milestones in oncology and cell therapy. Yet, the company faces challenges in its oncology segment and expects persistent headwinds in cell therapies. CFO Andrew Dickinson emphasized that expectations for full-year HIV growth remain intact despite a significant Medicare Part D impact, and Chief Commercial Officer Johanna Mercier discussed a “gradual ramp-up” in Yeztugo sales as payer coverage broadens and operational logistics improve.

Key Insights from Management’s Remarks

Management attributed quarterly momentum to the outperformance of core HIV therapies, new product launches, and cost controls, while noting ongoing pressure in oncology and cell therapy segments.

• HIV portfolio drives growth: Gilead’s HIV business, led by Biktarvy and Descovy, saw strong demand and market share gains. Biktarvy achieved approximately 52% U.S. market share, while Descovy’s growth was mainly attributed to increased use for HIV prevention (PrEP), with 3/4 of sales from this indication.
• Yeztugo launch off to strong start: The new HIV prevention injectable, Yeztugo, generated $39 million in sales for the quarter and secured 75% U.S. payer coverage nearly three months ahead of schedule. Management believes this rapid access expansion sets the stage for significant uptake in 2026.
• Liver disease momentum via Livdelzi: Livdelzi became the leading second-line treatment for primary biliary cholangitis (PBC) in the U.S., contributing to double-digit growth in Gilead’s liver portfolio. Strong commercial execution and a competitor’s product withdrawal supported adoption.
• Oncology mixed, cell therapy pressured: While Trodelvy delivered year-over-year sales growth due to demand in metastatic breast cancer, overall oncology and cell therapy revenues were weighed down by competitive headwinds and unfavorable inventory dynamics. Management anticipates these headwinds to persist in the near term.
• Cost discipline supports margins: Operating expense management, including lower R&D and SG&A outlays, helped drive a notable improvement in operating margin year-over-year, with non-GAAP EPS further boosted by a nonrecurring accounting item.

Drivers of Future Performance

Management expects future performance to be driven by the ongoing strength of HIV and liver disease portfolios, commercial execution in new launches, and clinical milestones, while headwinds in oncology and cell therapy remain key risks.

• HIV franchise expansion: Continued demand for Biktarvy and Descovy, as well as further uptake of Yeztugo driven by expanded payer access and operational improvements, are expected to underpin growth. Management noted the importance of converting new and existing PrEP patients as the market grows at a mid-teens pace.
• Liver and pipeline catalysts: Additional filings, such as bulevirtide for hepatitis delta virus and broader adoption of Livdelzi, are anticipated to support liver disease momentum. Progress in next-generation HIV therapies and key oncology trials, including upcoming ARTISTRY and ASCENT study readouts, are also highlighted as potential growth drivers.
• Oncology and cell therapy headwinds: Management acknowledges persistent competitive pressures in cell therapy and the need to demonstrate clinical and commercial progress for pipeline oncology assets. While new approvals and launches are targeted for 2026, near-term revenue contribution from these segments remains uncertain.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team is monitoring (1) broader adoption and payer coverage for Yeztugo and its impact on HIV prevention market share, (2) regulatory progress and commercial momentum for Livdelzi and bulevirtide in liver disease, and (3) key clinical readouts for Trodelvy and next-generation HIV regimens. The pace of cell therapy recovery and new oncology launches will also be critical markers of execution.

Gilead Sciences currently trades at $116, down from $118.38 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

Stocks That Trumped Tariffs

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.