Analyst Conference Summary

biotechnology

conference date: October 30, 2025 @ 1:30 PM Pacific Time
for quarter ending: September 30, 2025 (third quarter, Q3 2025)

Forward-looking statements

Overview: Okay quarter despite big drop in Veklury for Covid sales.

Basic data (GAAP):

Revenue was $7.77 billion, up 10% sequentially from $7.08 billion and up 3% from $7.55 billion in the year-earlier quarter.

Net income was $3.05 billion, up 56% sequentially from $1.96 billion and up 144% from $1.25 billion year-earlier.

Earnings per share (EPS, diluted) were $2.43, up 62% sequentially from $1.56, and up 143% from $1.00 in the year-earlier quarter.

Guidance:

Very slight raise in low end of product sales guidance for 2025 of $28.4 to $28.7 billion. Non-GAAP diluted EPS raised slightly, now $8.05 to $8.25.

Conference Highlights:

Daniel O'Day, CEO, said "With multiple potential product launches in 2026, the strongest clinical pipeline in Gilead’s history, and no major loss of exclusivity expected until 2036, we are well-positioned to drive positive impact for patients and continued growth of our business. We continue to deliver on Gilead's robust portfolio with a strong start for Yeztugo, rapidly growing uptake of Biktarvy, Descovy and Livdelzi, and positive data for Trodelvy in 1L metastatic triple negative breast cancer." Q3 was negatively impacted by fall in Veklury for Covid sales. Unusual one-time $400 million revenue from previous sale of intellectual property. Gilead now has no major LOEs (loss of exclusivity) until 2036.

The dividend of $0.79 per share, is to be paid on December 30, 2025 to shareholders of record as of December 15, 2025.

Exclusivity for Biktarvy was extended to April 2036.

In Q3 2025 presented Trodelvy Phase 3 data for metastatic triple-negative breast cancer patients not candidates for PD-1.

In Q3 announced acquisition of Interius Bio Therapeutics.

In Q3 2025 Gilead announced ground-breaking on a new Pharmaceutical Development and Manufacturing Technical Development Center in Foster City, California, part of a planned $32 billion investment in the U.S. through 2030.

Livdelzi (seladelpar) has become the #1 product for second linee PBC (primary biliary cholangitis) liver diesease. Q3 sales rose to $105 million.

Yeztugo, for PrEP approved by the FDA in June, 2025. Six royalty-free licensing agreements were signed with manufacturers for sale in resource-limited nations. Believes Yeztugo could bend the arc of the HIV epidemic. In Q3/Q4 received strong recommendation from U.S. CDC, partnered with PEPFAR, and received EU marketing authorization as Yeytuo. Q3 sales were $39 million.

In Q2 2025 Trodelvy for 1L metastatic triple-negative breast cancer (mTNBC) who are not candidates for PD-1/PD-L1 checkpoint inhibitors presented positive Phase 3 data. Presented positive Phase 3 data in combo with Keytruda for first line PD-L1+ MTNBC as ASCO. Data was highly statistically and clinically meaningful. Filings planned for 2H 2025.

Non-GAAP numbers: Net income was $3.10 billion, up 23% sequentially from $2.52 billion and up 23% from $2.53 billion year-earlier. Non-GAAP EPS was $2.57, up 28% sequentially from $2.01 and 27% from $2.02 year-earlier.

Product sales were $7.35 billion, up 4% sequentially from $7.05 billion and down 2% from $7.52 billion in the year-earlier quarter.

Royalty, contract and other revenue was $424 million, up sequentially from $27 million, and up from $30 million year-earlier.

Cash and equivalents ended at $9.35 billion, up sequentially from $7.1 billion. $4.11 billion cash flow from operations. Capital expense $147 million. $3.96 billion free cash flow. $435 million was used to repurchase shares. $1.0 billion paid in dividends. Long term liabilities were $24.8 billion.

Numerous other studies are underway or planned; see Gilead pipeline.

Expenses were $4.44 billion, consisting of $1.57 billion for cost of goods sold; $1.35 billion for R&D; $170 million acquired in-process R&D; $1.36 billion SG&A. Leaving income from operations of $3.33 billion. Interest expense $256 million. Other income $569 million. Income tax expense $589 million.

Capital allocation priorities are to grow the dividend and pay down debt.

Q&A selective summary:

Yeztugo switching v. new patients? In line with expectations for an injectable into an oral market. Mostly switches, both from oral branded, oral generic, and injectables. Expect naive patient use to grow over time.

Yeztugo patient numbers? To date $54 million in sales, but some is inventory. Access is good, already 75% coverage, mostly zero copays. Overall we are pleased. Full year sales expected at $150 or so. That should give an idea of patient numbers.

Business Development? We are looking broadly, but we like late stage assets like Livdelzy.

While we reached our 75% coverage goal for Yeztugo, that was very recently, and it takes time for those decisions to have an effect. So time will be required to ramp sales.

Overall prep market growth? 14% to 15% growth rate. May accelerate with social media or direct to consumer advertising.

Anito-cel filing? Hope to launch in 2H 2026. Will share data at ASH. We are impressed with the safety profile.

Trump administration, Part D? We are in good, constructive engagement on a number of topics with the administration. It wants the U.S. to remain the leading inovator, but reduce costs in U.S. and fairer (higher) costs outside the US. Our research infrastructure is almost all in the US.

HDV post CRL? Cannot comment on regulatory strategy. We have additional data about injections. Drug is already used in Europe. We are confident we can move forward.

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