Gilead Sciences, a prominent pharmaceutical company, recently unveiled its second-quarter 2025 financial outcomes, alongside an upward revision of its full-year fiscal projections. The firm's performance was notably strong, driven by solid demand for its key products, particularly within its HIV and oncology portfolios. This positive momentum is further bolstered by the impending market introduction of Yeztugo, a new therapeutic agent that holds significant promise for the company's future revenue streams. The updated financial guidance reflects Gilead's confidence in its operational efficiency and strategic product pipeline, even as it navigates a dynamic healthcare landscape.
On Thursday, following the market close, Gilead Sciences (NASDAQ: GILD) disclosed its second-quarter 2025 earnings, revealing impressive figures that surpassed analysts' expectations. The company reported adjusted earnings of $2.01 per share against a consensus of $1.94, and total sales reaching $7.08 billion, exceeding the $6.94 billion consensus. These results signify a robust quarter for the biotechnology leader.
Product sales for the second quarter demonstrated a 2% overall increase, or 4% excluding Veklury, reaching $6.9 billion. This growth was largely propelled by enhanced sales in HIV treatments, including Biktarvy and Descovy, alongside contributions from Livdelzi and Trodelvy. Biktarvy's sales surged by 9% to $3.5 billion due to heightened demand, while Descovy's sales climbed by 35% to $653 million, benefiting from both increased demand and improved pricing.
However, the Liver Disease portfolio experienced a 4% decline in sales to $795 million, primarily attributed to reduced chronic hepatitis C virus (HCV) sales, despite a rise in demand for Livdelzi, Hepcludex, and chronic hepatitis B virus (HBV) products. Veklury sales saw a significant 44% decrease, totaling $121 million. Cell Therapy products also faced a 7% reduction in sales, amounting to $485 million, as a result of ongoing market competition. Conversely, Trodelvy's sales witnessed a 14% increase to $364 million, fueled by higher demand and inventory adjustments.
The company's product gross margin improved to 78.7% in Q2 2025, up from 77.7% in the previous year. The non-GAAP product gross margin also rose to 86.9% from 86.0% year-over-year, primarily driven by a favorable product mix. In a strategic move to return value to shareholders, Gilead authorized a new $6.0 billion stock repurchase program, set to commence upon the conclusion of the existing program.
Looking ahead, Gilead Sciences has raised its fiscal 2025 adjusted earnings guidance to a range of $7.95-$8.25 per share, up from the previous $7.70-$8.10, aligning closely with the consensus of $7.96. The sales guidance for 2025 was also increased to $28.3 billion-$28.7 billion, compared to the prior $28.2 billion-$28.6 billion, against a consensus of $28.65 billion. Despite the overall positive outlook, Veklury sales projections were revised downwards to $1 billion from $1.4 billion.
In other developments, Gilead and Arcus Biosciences Inc (NASDAQ: RCUS) decided not to proceed with a Phase 3 study for etrumadenant, following Gilead's return of the license for the drug to Arcus in June. This decision was influenced by strategic priorities, despite positive feedback from the FDA regarding a potential registrational path for the program. Furthermore, Gilead announced a collaboration with the Global Fund to Fight AIDS, Tuberculosis and Malaria, committing to supply lenacapavir, an HIV prevention drug, at no profit for distribution to up to two million people over three years in Global Fund-supported countries.
Analysts have responded positively to Gilead's updates. Goldman Sachs maintained a 'Neutral' rating but increased its price target from $100 to $105, anticipating a boost from the Yeztugo launch and potential policy shifts. Truist Securities upgraded Gilead Sciences from 'Hold' to 'Buy', raising its price forecast from $108 to $127, reflecting increased optimism about the company's prospects. Following these announcements, GILD stock saw a significant 9.07% increase, trading at $120.30, indicating a strong market reaction to the company's financial and strategic developments.
Gilead Sciences' latest financial disclosures and forward-looking statements paint a promising picture for the company. The upward adjustment of its annual financial outlook, fueled by robust performance in its core therapeutic areas and the anticipated introduction of a new flagship product, underscores a period of significant growth and strategic realignment. This confident posture is further reinforced by substantial share repurchases and meaningful global health partnerships, signaling a strong trajectory for the pharmaceutical innovator.