- Gilead Sciences exceeded analyst expectations for Q2 2025, driven by 7% year-on-year growth in HIV sales, with lead therapy Biktarvy up 9%.
- The company raised its full-year 2025 earnings guidance, projecting adjusted EPS between $7.95 and $8.25 and revenue of $28.3–$28.7 billion.
- Oncology offerings remain mixed, with strong performance from Trodelvy offset by broader competitive challenges.
- Gilead’s dominant HIV franchise accounted for over 70% of total product sales, cushioning softer performance elsewhere.
- The company recently authorised a $6 billion share repurchase programme, reflecting confidence in valuation and long-term stability.
Gilead Sciences has demonstrated remarkable resilience in its latest quarterly performance, with robust sales in its HIV treatments propelling overall revenue growth and prompting an upward revision in full-year earnings guidance. This strength in a core therapeutic area underscores the company’s ability to navigate challenges in other segments, positioning it as a dependable large-cap player in the biotechnology sector amid fluctuating market conditions.
Strong HIV Franchise Drives Quarterly Beats
The second quarter of 2025 saw Gilead Sciences report revenue of $7.1 billion, marking a 2% increase year-over-year, according to the company’s official earnings release. This figure surpassed analyst expectations, primarily fuelled by a 7% rise in HIV product sales, which totalled approximately $5.0 billion. Key contributor Biktarvy, a leading HIV therapy, generated $3.5 billion in sales, up 9% from the previous year, highlighting sustained demand and pricing power in this established market.
This performance offset softer results in other areas, such as oncology and certain antiviral therapies, where competitive pressures and market dynamics have introduced variability. For instance, Veklury, Gilead’s COVID-19 treatment, recorded $121 million in revenue, falling short of estimates amid declining pandemic-related demand. Nonetheless, the HIV segment’s dominance—accounting for over 70% of total product sales—provided a solid buffer, enabling the company to achieve an adjusted earnings per share (EPS) of $2.01, beating consensus forecasts of $1.98.
Breaking Down the Numbers
To contextualise this, Gilead’s HIV sales growth reflects broader trends in chronic disease management, where long-term therapies benefit from high patient adherence and expanding global access. Analyst models from sources like MarketBeat indicate that this segment’s momentum is expected to persist, supported by recent regulatory approvals, including the FDA’s nod for Yeztugo (lenacapavir) as the world’s first twice-yearly injectable for HIV prevention. This innovation could further entrench Gilead’s market leadership, potentially adding billions to future revenue streams.
In contrast, oncology offerings like Trodelvy showed promise with $364 million in sales, a 17% increase, but the segment as a whole faces headwinds from pipeline delays and intensifying competition. Antiviral therapies outside HIV also exhibited mixed results, with liver disease treatments contributing steadily but not accelerating at the pace of HIV products.
Raised Guidance Signals Confidence
Building on these results, Gilead has revised its full-year 2025 guidance, projecting adjusted EPS between $7.95 and $8.25, up from prior estimates. Revenue guidance was also lifted to $28.3 billion to $28.7 billion, reflecting optimism in sustained HIV demand and contributions from newer launches like Livdelzi for liver disease. This adjustment aligns with consensus analyst forecasts, which peg EPS at around $8.07 for the current year, implying a forward price-to-earnings ratio of approximately 16 based on live ticker data as of 11 August 2025, where shares traded at $118.87.
Such revisions are not merely cosmetic; they stem from tangible operational strengths. For example, comparing to historical filings, Gilead’s Q2 2024 revenue was $7.0 billion with adjusted EPS of $1.66, illustrating a marked improvement in profitability. This inflection point—evident in EPS growth from $5.04 trailing twelve months to forward estimates of $7.43—suggests effective cost management and portfolio diversification paying dividends.
Implications for Valuation and Market Position
At a market capitalisation of $147.5 billion and a price-to-book ratio of 7.50, Gilead appears reasonably valued relative to peers in the biotech space, particularly given its dividend yield and share repurchase programmes. The company recently authorised a $6 billion buyback, signalling management’s belief in undervaluation. Live data shows shares have risen 16% over the past 200 days from an average of $102.48, outperforming the sector amid broader market volatility.
Analyst sentiment, as aggregated by platforms like Simply Wall St, remains positive, with a ‘Buy’ rating averaging 1.8 on a scale where 1 is strong buy. This optimism is anchored in Gilead’s diversified portfolio, where HIV’s stability mitigates risks in oncology and antivirals. However, investors should note potential headwinds, such as patent cliffs for key HIV drugs in the coming years and regulatory scrutiny on pricing.
Broader Market and Strategic Outlook
In the context of the healthcare sector, Gilead’s performance exemplifies how specialisation in high-margin areas like HIV can insulate against cyclical downturns in oncology or infectious diseases. Global HIV prevalence, estimated at over 39 million cases by the World Health Organization, ensures a vast addressable market, bolstered by Gilead’s ongoing research into long-acting formulations that could reduce treatment burdens and improve outcomes.
Looking ahead, analyst-led forecasts from firms like Baird project continued HIV growth at 5–7% annually through 2027, driven by market share gains and geographic expansion. This could offset any oncology softness, where Trodelvy’s potential in breast and lung cancers remains a wildcard. If Gilead executes on its pipeline—evidenced by recent data presentations at conferences like HIV Glasgow 2024—the raised guidance might prove conservative.
Yet, a touch of dry humour underscores the biotech irony: while HIV therapies provide steady cash flows akin to a reliable annuity, the quest for blockbuster oncology drugs often resembles a high-stakes gamble, where payoffs can be elusive. Gilead’s balanced approach—leveraging HIV’s predictability to fund riskier ventures—offers a model for sustainable growth in an industry prone to volatility.
Key Metrics at a Glance
| Metric | Q2 2025 | YoY Change | Full-Year Guidance |
|---|---|---|---|
| Revenue | $7.1B | +2% | $28.3B – $28.7B |
| Adjusted EPS | $2.01 | +21% | $7.95 – $8.25 |
| HIV Sales | $5.0B | +7% | N/A |
| Oncology Sales (Trodelvy) | $364M | +17% | N/A |
| Market Cap (as of 11 Aug 2025) | $147.5B | ||
Ultimately, Gilead’s ability to leverage its HIV stronghold for overall beats and optimistic guidance reinforces its appeal as a steady healthcare investment. As the sector grapples with innovation pressures, this biotech giant’s strategic focus on proven therapies provides a foundation for enduring value creation.
References
- Gilead Sciences. (2025). Second quarter 2025 financial results. Retrieved from https://www.gilead.com/news/news-details/2025/gilead-sciences-announces-second-quarter-2025-financial-results
- Gilead Sciences. (2025). Fourth quarter and full-year 2024 financial results. Retrieved from https://www.gilead.com/news/news-details/2025/gilead-sciences-announces-fourth-quarter-and-full-year-2024-financial-results
- Gilead Sciences. (2024). Third quarter 2024 financial results. Retrieved from https://www.gilead.com/news/news-details/2024/gilead-sciences-announces-third-quarter-2024-financial-results
- Gilead Sciences. (2024). Fourth quarter and full-year 2023 financial results. Retrieved from https://www.gilead.com/news/news-details/2024/gilead-sciences-announces-fourth-quarter-and-full-year-2023-financial-results
- Gilead Sciences. (2025). Earnings call transcript: Q2 2025. Retrieved from https://www.theglobeandmail.com/investing/markets/stocks/GILD/pressreleases/33999259/gilead-sciences-gild-q2-2025-earnings-call-transcript/
- Finance Yahoo. (2025). Gilead Sciences Second Quarter Results. Retrieved from https://finance.yahoo.com/news/gilead-sciences-announces-second-quarter-200200505.html
- Simply Wall St. (2025). Gilead Sciences: Raised 2025 Guidance. Retrieved from https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-gild/gilead-sciences/news/gilead-sciences-gild-rises-on-raised-2025-guidance-and-6b-bu
- MarketBeat. (2025). Gilead Sciences FY2025 guidance. Retrieved from https://www.marketbeat.com/instant-alerts/gilead-sciences-nasdaqgild-issues-fy-2025-earnings-guidance-2025-08-07/
- AINVEST. (2025). Earnings momentum and sustained strategic outlook. Retrieved from https://www.ainvest.com/news/gilead-sciences-earnings-momentum-strategic-outlook-2025-durable-growth-shift-2508/
- AINVEST. (2025). Surge in earnings and guidance hike. Retrieved from https://ainvest.com/news/gilead-sciences-gild-earnings-surge-guidance-hike-signal-strategic-buy-opportunity-2508
