5 Insightful Analyst Questions From Gilead Sciences's Q1 Earnings Call

Gilead Sciences’ first quarter performance saw sales remain flat year over year, which did not meet Wall Street’s revenue expectations and prompted a negative market reaction. Management attributed the quarter’s outcomes to growth in the HIV and liver disease businesses, with Biktarvy and Descovy showing strong demand. However, softness in oncology—particularly Trodelvy—and ongoing challenges in the cell therapy segment weighed on overall results. CEO Daniel O’Day acknowledged, “Year-over-year growth in our HIV and liver disease businesses was partially offset by softer than expected Trodelvy sales due to inventory dynamics that masked increase in demand, as well as headwinds in cell therapy.”

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Gilead Sciences’s Q1 Earnings Call

• Michael Yee (Jefferies): asked about lenacapavir’s launch dynamics and reimbursement timelines. Chief Commercial Officer Johanna Mercier explained that access is expected to build gradually, with 75% coverage within six months and broader adoption by twelve months.
• Salveen Richter (Goldman Sachs): inquired about tariff risk and manufacturing exposure. CEO Daniel O’Day clarified that most intellectual property and manufacturing are U.S.-based, reducing tariff exposure, while CFO Andrew Dickinson confirmed that cost impacts are reflected in current guidance.
• Tyler Van Buren (TD Cowen): questioned the drivers behind Trodelvy’s lower demand. Mercier attributed it mainly to inventory fluctuations, noting the product’s strong position in breast cancer indications.
• Tim Anderson (BofA): asked if lenacapavir for PrEP would cannibalize Descovy sales. Mercier indicated initial uptake would be from both switch and new patients, but declined to provide specific cannibalization estimates.
• Evan Seigerman (BMO): asked about competitive dynamics in cell therapy. Kite’s Cindy Perettie explained that both bispecifics and in-class products are contributing to increased competition, especially outside the U.S.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be monitoring (1) the FDA’s decision and subsequent adoption curve for lenacapavir in HIV prevention, (2) regulatory progress and commercial momentum for Livedelzi in international markets, and (3) updates on Trodelvy’s label expansion and anetocel’s clinical development. Execution on these launches and adaptation to evolving reimbursement policies will be critical for Gilead’s growth trajectory.

Gilead Sciences currently trades at $109.15, up from $106.07 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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