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Gilead Sciences, Inc. GILD reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.86, which beat the Zacks Consensus Estimate of $1.83.
The bottom line was down from $1.90 reported a year ago. The year-over-year decrease was primarily due to higher acquired IPR&D expenses.
Total revenues of $7.9 billion beat the Zacks Consensus Estimate of $7.6 billion. Revenues were up 5% year over year, driven by higher HIV and Liver Diseases drugs.
The stock was down in after-market trading on Feb. 10, probably due to its earnings guidance for 2026 that did not impress the Wall Street.
Gilead’s shares have surged 53.1% over the past year compared with the industry's growth of 20.3%.
Total revenues comprise product sales and royalty, contract and other revenues.
Product sales increased 5% year over year to $7.9 billion. Excluding Veklury (remdesivir for COVID 19), product sales increased 7% to $7.7 billion.
HIV product sales grew 6% year over year to $5.8 billion, driven by higher demand for HIV prevention and treatment.
The figure beat both the Zacks Consensus Estimate and our model estimate of $5.6 billion.
Flagship HIV therapy Biktarvy’s sales increased 5% year over year to $4 billion, driven by higher demand and favorable inventory dynamics. The reported number beat both the Zacks Consensus Estimate and our model estimate of $3.8 billion.
Per GILD, Biktarvy accounts for over 52% share of the HIV treatment market in the United States.
Descovy (FTC 200 mg/TAF 25 mg) sales increased 33% year over year to $819 million, driven by higher average realized price and increased demand for HIV prevention. The reported number comfortably beat the Zacks Consensus Estimate of $703 million and our model estimate of $710 million. Descovy accounts for more than 45% of the U.S. market share in pre-exposure prophylaxis (PrEP).
Incremental sales of newly approved Yeztugo (lenacapavir) for PrEP also boosted HIV product sales.
Yeztugo raked in sales of $96 million in the fourth quarter and $150 million in 2025.
The Liver Disease portfolio sales, which include chronic HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV), increased 17% to $844 million, primarily driven by higher demand for Livdelzi for the treatment of primary biliary cholangitis (PBC).
Liver Disease portfolio sales beat the Zacks Consensus Estimate of $773 million and our model estimate of $733 million.
Veklury sales plunged 37% to $212 million, primarily due to lower rates of COVID-19-related hospitalizations.
Cell Therapy product (comprising Yescarta and Tecartus) sales decreased 6% to $458 million due to ongoing competitive headwinds. Nonetheless, the figure beat the Zacks Consensus Estimate of $398 million and our model estimate of $384.3 million.
Yescarta sales decreased 6% year over year to $368 million due to competition. Tecartus (adult acute lymphoblastic leukemia) sales also decreased 9% to $90 million due to competition.
Breast cancer drug Trodelvy’s sales increased 8% year over year to $384 million, driven by higher demand. Trodelvy's sales beat the Zacks Consensus Estimate of $362 million and our model estimate of $342.2 million.
Adjusted product gross margin was 86.8% in the fourth quarter compared with 86.7% in the year-ago quarter.
Research and development expenses totaled $1.6 billion, flat year over year.
SG&A expenses amounted to $1.7 billion, down from $1.9 billion in the year-ago quarter due to lower expenses related to legal matters and corporate initiatives.
Acquired IPR&D expenses totaled $539 million, primarily related to the company’s acquisition of Interius BioTherapeutics and ongoing collaboration with Shenzhen Pregene Biopharma Co., Ltd.
During the fourth quarter of 2025, Gilead paid dividends of $1.0 billion and repurchased $230 million of common stock.
As of Dec. 31, 2025, Gilead had $10.6 billion in cash, cash equivalents and marketable debt securities compared with $9.4 billion as of Sept. 30, 2025.
Revenues rose 2% year over year to $29.4 billion in 2025, surpassing the Zacks Consensus Estimate of $29.11 billion.
Adjusted EPS increased to $8.15 from $4.62 in 2024, slightly exceeding the Zacks Consensus Estimate of $8.14.
Gilead expects product sales to be between $29.6 billion and $30 billion. The Zacks Consensus Estimate for 2026 revenues is pinned at $30.04 billion.
Total product sales, excluding Veklury, are expected to be between $29 billion and $29.4 billion. Total Veklury sales are still estimated to be $600 million.
Adjusted EPS is projected to be in the range of $8.45-$8.85. The Zacks Consensus Estimate for 2026 EPS is pegged at $8.61.
Gilead announced positive top-line phase III results from the ARTISTRY-1 and ARTISTRY-2 studies evaluating its investigational once-daily oral single-tablet regimen of bictegravir 75 mg and lenacapavir 50 mg (BIC/LEN) in virologically suppressed adults with HIV. The regimen met primary endpoints in both studies, demonstrating non-inferiority to baseline multi-tablet antiretroviral regimens in ARTISTRY-1 and to Biktarvy in ARTISTRY-2.
The company also exercised its option to license investigational herpes simplex virus helicase-primase inhibitor programs ABI-1179 and ABI-5366 from Assembly Biosciences, Inc.
The late-stage ASCENT-07 study evaluating the investigational use of Trodelvy versus chemotherapy in first-line post-endocrine HR+/HER2- metastatic breast cancer did not meet its primary endpoint of progression-free survival as assessed by Blinded Independent Central Review.
Gilead and partner Arcus Biosciences, Inc. RCUS discontinued the phase III STAR-221 study. This study was evaluating the anti-TIGIT antibody domvanalimab plus zimberelimab and chemotherapy in first-line HER2- advanced gastric and esophageal cancers.
The decision to discontinue was based on the recommendation of the Independent Data Monitoring Committee, following review of data from a pre-specified interim analysis.
Gilead and Arcus will also discontinue the phase II EDGE-Gastric study evaluating domvanalimab plus zimberelimab regimens in upper gastrointestinal cancers.
Gilead and partner Arcellx, Inc. presented positive new data from the phase II iMMagine-1 study evaluating the investigational CAR T-cell therapy anitocabtagene autoleucel in 4L+ R/R multiple myeloma at the 2025 American Society of Hematology.
Gilead announced a new label update for Yescarta that removes a limitation around Primary Central Nervous System Lymphoma, an ultra-rare cancer affecting a highly vulnerable patient population.
Gilead’s fourth-quarter results were good. HIV business performed well in 2025 despite the estimated $900-million headwind. This business also exceeded management’s annual target of 5% growth, driven by solid performance of Biktarvy and Descovy.
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
The FDA approval of lenacapavir under the brand name Yeztugo solidifies GILD’s HIV portfolio.
The initial uptake of Yeztugo has been strong. Yeztugo has a competitive advantage as it needs to be taken only twice a year, unlike daily oral pills, and addresses a broad population.
Approval of better HIV treatments should strengthen the HIV franchise in the wake of increasing competition from the likes of GSK plc GSK.
Positive data from ARTISTRY-1 and ARTISTRY-2 studies, evaluating an investigational single-tablet regimen of bictegravir and lenacapavir, increase the probability of approval for this combination. GILD targets a potential launch in the second half of the year.
Gilead expects total HIV sales, including both treatment and prevention, to grow approximately 6% year over year. Yeztugo sales are projected to be $800 million.
The outlook also incorporates manageable headwinds from the U.S. government drug pricing agreement that lowers Medicaid pricing for certain products, including Genvoya and Odefsey, as well as potential channel mix shifts toward lower-priced segments tied to proposed Affordable Care Act changes.
Overall, these factors are expected to reduce HIV growth by about 2 percentage points in 2026 versus 2025.
Livdelzi’s strong performance supported top-line growth, driven by robust patient demand and further aided by the withdrawal of a competing product in the United States.
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 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.
GILD anticipates competitive pressures in cell therapies’ business to continue, including new market entrants in several countries outside the United States.
Gilead currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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