Gilead Sciences 2025 Financial Results: HIV and Liver Disease Portfolios Drive Growth, Modest Full-Year Expansion — Daniel O’Day

Gilead Sciences, Inc. reported its fourth quarter and full year 2025 financial results with modest revenue growth, solid product performance in key therapeutic franchises and improved earnings metrics, while providing guidance for 2026 against a backdrop of competitive pressures and shifting product mix. CEO Daniel O’Day highlighted strong momentum in HIV treatment and prevention, demand for liver disease products and strategic pipeline progress as the company looks to sustain growth into the next fiscal year.

Full Year and Q4 2025 Financial Results Overview

Total Revenue for the full year 2025 increased 2% to $29.4 billion compared to 2024, reflecting relative strength in HIV and liver disease products partially offset by declines in COVID-19 (Veklury) and cell therapy sales. Q4 2025 revenue rose 5% to about $7.9 billion versus the prior year quarter, driven largely by higher HIV and liver disease product sales.

Product Sales — the largest component of total revenue — climbed 1% year-over-year to $28.9 billion in 2025, with sales excluding Veklury up 4%, underscoring stronger underlying commercial demand outside pandemic-related products.

Earnings and Profitability

Diluted EPS for the full year improved markedly to $6.78 in 2025 compared to $0.38 in 2024 on a GAAP basis, driven by higher revenues, lower acquisition-related costs, net unrealized gains on equity investments and reduced SG&A expenses. Non-GAAP diluted EPS rose to $8.15 from $4.62, reflecting operational leverage and cost efficiencies.

In Q4 2025, GAAP diluted EPS was $1.74 versus $1.42 in Q4 2024, supported by higher product sales, tax benefits and lower SG&A expenses, while non-GAAP diluted EPS was about $1.86, slightly below the prior year quarter due to higher acquired IPR&D expenses.

Segment and Product Performance

HIV Franchise

The HIV portfolio remained Gilead’s key growth engine:

• Biktarvy sales increased ~7% to $14.3 billion for the full year, reflecting strong demand, despite downward pricing pressures.

• Descovy recorded significant growth of ~31% to $2.8 billion, benefiting from higher demand and pricing.
  Overall HIV product sales grew ~6% to $20.8 billion in 2025.

Liver Disease

The liver disease portfolio expanded about 6%, with demand for Livdelzi® and other viral hepatitis products contributing to growth.

COVID-19 (Veklury)

Sales of Veklury® declined sharply (~49%) to $911 million for the full year and fell about 37% in Q4 2025, reflecting lower COVID-19 hospitalizations.

Cell Therapy and Oncology

• Cell therapy products (e.g., Yescarta, Tecartus) experienced a decline (~7% for the year; ~6% in Q4) due to competitive pressures.

• Trodelvy® saw a roughly 6–8% increase in sales, supported by demand in breast cancer treatment, though some indications saw reduced use.

Operating Metrics and Expense Trends

Product gross margins remained relatively stable in 2025, while R&D expenses were slightly lower year-over-year on a GAAP basis, reflecting disciplined investments. SG&A expenses declined as well, benefiting from lower legal and corporate initiative costs. Effective tax rates decreased significantly compared to the prior year, influenced by prior tax charge impacts.

Cash Flow, Capital Returns, and Balance Sheet Highlights

As of Dec 31, 2025, Gilead held approximately $10.6 billion in cash, cash equivalents and marketable securities — up from roughly $10.0 billion at year-end 2024 — while continuing to generate strong operating cash flow. In Q4 2025 alone, the company generated about $3.3 billion in operating cash flow and returned value through dividends (~$1.0bn) and share repurchases (~$230 million).

2026 Guidance and Strategic Outlook

For full-year 2026, Gilead provided financial guidance with expected:

• Product sales between $29.6 billion and $30 billion,

• Product sales excluding Veklury of $29.0bn–$29.4bn,

• Diluted EPS of $6.75–$7.15, and

• Non-GAAP diluted EPS of $8.45–$8.85.
  This outlook signals modest growth, emphasizing continued demand for core HIV and liver disease products while accounting for headwinds in legacy COVID-19 revenues.

Analyst coverage and market commentary following the release noted Gilead’s Q4 results beat expectations but that the 2026 guidance sat at or slightly below consensus, pressuring the stock modestly, particularly given competitive dynamics in cell therapy and pricing environments.

Leadership Perspective

CEO Daniel O’Day characterized 2025 as a “very strong year” for Gilead, pointing to the successful U.S. launch of Yeztugo (a twice-yearly HIV prevention therapy), continued growth in HIV and liver disease portfolios, and a pipeline positioned to deliver potential new cancer and HIV treatment launches in 2026.

Key Takeaways

Strengths

• Continued growth in core HIV and liver disease products.

• Strong earnings improvement and disciplined expense management.

• Robust cash flows and active capital returns.

Considerations

• Continued pressure on legacy COVID-19 products and cell therapy franchises.

• 2026 guidance reflects modest growth amid competitive headwinds.

Gilead’s 2025 financial performance demonstrates resilience in key therapeutic areas with profitable growth and diversified revenue streams, even as product mix evolution and competition shape expectations for 2026.