Gilead Sciences reported fourth‑quarter and full‑year 2025 results that surpassed expectations. Total product sales reached $7.93 billion, a 5 % increase from $7.54 billion in 2024, while earnings per share climbed to $1.86, beating the consensus estimate of $1.81–$1.85 by $0.01–$0.05. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin HIV and liver‑disease products, which offset the decline in Veklury sales.
Base‑business sales excluding the COVID‑19 antiviral Veklury grew 4 % year‑over‑year to $6.12 billion, driven by a 7 % rise in HIV revenue to $3.45 billion and a 6 % increase in liver‑disease revenue to $1.02 billion. Veklury revenue fell 18 % to $1.00 billion as hospitalizations for COVID‑19 declined, but the company’s portfolio diversification helped maintain overall growth.
GAAP product gross margin stood at 78.6 %, essentially unchanged from 78.4 % in 2024, while non‑GAAP gross margin was 86.6 %, reflecting the higher profitability of the core product lines. The steady GAAP margin indicates that pricing power and cost controls have kept the mix stable, even as the company continues to invest in research and development.
Management guided 2026 revenue to a midpoint of $29.8 billion, slightly below the $29.9 billion consensus, and projected adjusted EPS of $8.45 to $8.85, a 1 % miss on the $8.65 midpoint estimate. The cautious outlook reflects concerns about the Medicare Part D redesign, which is expected to reduce HIV sales by roughly 2 % in 2026, and the ongoing transition to a new pricing framework for specialty drugs.
CEO Daniel O'Day said the results “set the stage for a very promising 2026” and highlighted the company’s strong pipeline, noting that no major product exclusivity losses are expected until 2036. CFO Andrew Dickinson emphasized that the full‑year 2025 sales of $28.9 billion exceeded guidance, driven by HIV growth that offset Part D headwinds. Chief Commercial Officer Johanna Mercier praised the rapid adoption of Livdelzi and the success of Yeztugo, noting that coverage for the latter has reached 90 % ahead of target.
Gilead also raised its quarterly dividend by 3.8 % to $0.82 per share, underscoring its commitment to shareholder returns. The company’s pipeline, which includes up to ten potential launches through 2027, remains a key growth driver, while the company’s long‑term revenue protection—no major exclusivity losses until 2036—provides stability amid a competitive landscape that includes new cell‑therapy entrants.
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