Gilead Sciences Reports Strong Q3 2025 Earnings with Product Sales Growth

Overview of Gilead's Q3 2025 Earnings Report

Gilead Sciences, headquartered in Foster City, California, has announced its earnings for the third quarter of 2025, revealing promising figures across various product lines and an optimistic outlook for the future. According to Gilead's chairman and CEO, Daniel O’Day, the company is continuing to see steady progress, spurred by the strong performance of recently launched products such as Yeztugo and ongoing growth in key areas.

Financial Highlights

For Q3 2025, Gilead reported total revenues of $7.8 billion, a 3% increase compared to the same period in 2024. Product sales, excluding Veklury (remdesivir), experienced a 4% growth, totaling $7.1 billion. This positive trend was primarily driven by increases in HIV product sales and the introduction of Livdelzi, although sales from cell therapies showed a slight decline.

The detailed revenue breakdown includes:

- HIV Products: Sales reached $5.3 billion, marking a 4% increase year-over-year. Factors contributing to this growth include heightened demand and favorable inventory dynamics.
- Biktarvy: Revenue amounted to $3.7 billion, reflecting a 6% increase over the previous year, driven primarily by increasing demand despite a slight drop in average market prices.
- Desicovy: This product saw significant growth of 20%, achieving $710 million in sales, attributed mainly to rising demand.
- Liver Disease Portfolio: Sales reached $819 million, up 12% from the previous year, primarily fueled by increased demand for Livdelzi.

However, sales from Veklury saw a 60% decrease, dipping to $277 million, largely due to reduced hospitalization rates linked to COVID-19. Sales of cell therapies like Yescarta and Tecartus also faced challenges, decreasing 10% and 15%, respectively.

Earnings Per Share (EPS)

Gilead reported diluted earnings per share of $2.43 for Q3 2025, compared to $1.00 in the same quarter last year. This substantial increase is mainly attributed to the absence of $1.75 billion in research and development expense impairments recorded last year and additional income from various sources this year.

The non-GAAP diluted EPS also reflected a positive trend, rising to $2.47, compared to $2.02 in Q3 2024, indicating robust operational efficiency.

Cash and Shareholder Returns

As of September 30, 2025, Gilead's cash, cash equivalents, and marketable securities totaled $9.4 billion, down from $10 billion at the end of 2024. Despite this, the operational cash flow for the quarter was solid at $4.1 billion. In a bid to return value to shareholders, Gilead declared a cash dividend of $1 billion and repurchased $435 million of its common stock during the quarter.

Strategic Outlook

Looking ahead, Gilead’s guidance for the full fiscal year 2025 indicates a total product revenue range of $28.4 to $28.7 billion, with significant expectations for growth excluding Veklury. The forecasted diluted EPS range has also been raised to between $6.65 and $6.85, showcasing management’s confidence in the company's future trajectory.

Development Pipeline

Gilead's robust pipeline is poised for further product launches in 2026, underscoring its strategic initiatives in oncology and viral diseases. CEO O’Day emphasized the company’s commitment to expanding its contributions to patient care while maintaining its growth momentum.

Key Agreements and Collaborations

Recent developments include settlements with generic drug manufacturers regarding Veklury patents, ensuring a protected market position until April 2036. Additionally, Gilead announced collaborations to provide Yeztugo, an injection for HIV pre-exposure prophylaxis, to high-risk populations worldwide.

Conclusion

Gilead Sciences has exhibited strong performance in Q3 2025, supported by solid product sales and a promising pipeline. With strategic investments and an expansive portfolio, the company is well-positioned to enhance its impact in the health care landscape over the coming years.

For more details, Gilead will conduct a conference call on October 30 at 1:30 PM PT to discuss these results further.