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.
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Gilead Sciences (GILD) Q3 CY2025 Highlights:
- Revenue: $7.77 billion vs analyst estimates of $7.49 billion (3% year-on-year growth, 3.7% beat)
- Adjusted EPS: $2.47 vs analyst estimates of $2.14 (15.7% beat)
- Adjusted EBITDA: $4.48 billion vs analyst estimates of $4.59 billion (57.7% margin, 2.3% miss)
- The company slightly lifted its revenue guidance for the full year to $28.55 billion at the midpoint from $28.5 billion
- Management slightly raised its full-year Adjusted EPS guidance to $8.15 at the midpoint
- Operating Margin: 42.8%, up from 11.8% in the same quarter last year
- Market Capitalization: $152.2 billion
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 From Gilead Sciences’s Q3 Earnings Call
- Geoffrey Meacham (Citigroup) asked if Yeztugo uptake was primarily from patients switching therapies or new PrEP users. Chief Commercial Officer Johanna Mercier explained most demand came from switches—across branded, generic, and injectable competitors—with expectations for naive patient growth as awareness increases.
- Umer Raffat (Evercore ISI) requested clarity on the number of Yeztugo patients implied by quarterly sales. Mercier responded that the company tracks indicators like access and conversion rates, and that sales data reflects both launch inventory and true demand, noting stabilization is expected as reporting improves.
- Evan Seigerman (BMO Capital Markets) inquired about business development appetite in liver disease, specifically NASH. CFO Andrew Dickinson stated Gilead remains open to adding late-stage, derisked assets in liver and other core areas, emphasizing disciplined dealmaking.
- Christopher Schott (JPMorgan) probed the expected sales ramp for Yeztugo into 2026. Mercier said the recent access wins would translate into a "gradual ramp-up," with a more pronounced acceleration as operational integration and payer logistics improve.
- Courtney Breen (Bernstein) asked about Gilead’s approach to potential regulatory changes in drug pricing, especially given the recent Medicare Part D redesign. CEO Daniel O'Day discussed constructive engagement with U.S. authorities and confidence in the company’s ability to navigate evolving policy frameworks.
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 $122.49, up from $118.38 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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