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    GILD
    Earnings call· Dec 2025(Q4 FY25)

    GILEAD SCIENCES Q4 FY25 earnings call GILD

    Feb 10, 2026 Source

    Executive summary

    Gilead Q4 FY25 — Strong HIV and Livdelzi Performance Drives Sales Beat, Robust 2026 Launch Pipeline

    Gilead closed FY25 with strong commercial execution, particularly in HIV and Livdelzi, driving total product sales above guidance. The company is entering 2026 with a robust pipeline, targeting four new commercial launches and five Phase III readouts across its core therapeutic areas, while maintaining expense discipline and a proactive approach to business development. This positions Gilead for continued growth with no major product LOEs until 2036.

    Highlights

    5
    • HIV business grew 6% year-over-year, driven by Biktarvy (7% growth) and HIV prevention (47% growth), exceeding updated guidance.

    • Yeztugo exceeded its 90% payer coverage goal ahead of target, with $150 million sales in 2025 and projected $800 million in 2026.

    • Livdelzi sales grew a remarkable 42% sequentially to $150 million in Q4, achieving over 50% market share in second-line PBC.

    • Total product sales of $28.9 billion (excluding Veklury $28 billion) exceeded guidance range, growing 1% year-over-year (5% excluding Part D impact).

    • Robust pipeline with up to 10 ongoing and potential new launches through 2027, including 4 targeted for 2026.

    Concerns

    5
    • HIV business faced an estimated $900 million headwind in 2025 due to Medicare Part D redesign.

    • Cell therapy sales were down 7% year-over-year to $1.8 billion in 2025, reflecting ongoing competition and clinical trial impacts.

    • Expected $300 million headwind from Veklury sales decline to approximately $600 million in 2026.

    • HIV growth in 2026 is expected to be impacted by approximately 2% due to a drug pricing agreement and proposed Affordable Care Act changes.

    • Cell therapy revenue is expected to decline approximately 10% in 2026 due to continued competitive headwinds.

    Guidance & targets

    32
    CategoryTargetConfidence
    Yeztugo revenue
    approximately $800 million
    medium materiality
    High
    Total HIV sales growth
    approximately 6%
    high materiality
    High
    Total product sales
    $29.6 billion and $30 billion
    high materiality
    High
    Base business sales
    $29 million and $29.4 billion
    high materiality
    High
    Base business sales growth
    4% to 5%
    high materiality
    High
    Veklury sales
    approximately $600 million
    medium materiality
    High
    Product gross margin
    approximately 87%
    high materiality
    High
    R&D expenses
    increase a low single-digit percentage
    medium materiality
    High
    Acquired IPR&D investments
    approximately $300 million
    medium materiality
    High
    SG&A expenses
    increase by a mid-single-digit percentage
    medium materiality
    High
    Non-GAAP operating income
    between $13.8 billion and $14.3 billion
    high materiality
    High
    Non-GAAP effective tax rate
    approximately 20%
    medium materiality
    High
    Non-GAAP diluted EPS
    $8.45 and $8.85 per share
    high materiality
    High
    Cell therapy revenue decline
    approximately 10%
    medium materiality
    High
    Return of free cash flow to shareholders
    at least 50%
    high materiality
    High
    Annual investment in early-stage opportunities
    approximately $1 billion
    medium materiality
    High
    Major product LOEs
    none
    high materiality
    High
    Ongoing and potential new launches
    up to 10
    high materiality
    High
    Commercial launches
    4
    high materiality
    High
    Phase III readouts
    5
    high materiality
    High
    FDA decisions
    5
    high materiality
    High
    BIC/LEN launch
    potential launch in the second half of this year
    high materiality
    High
    anito-cel launch
    potential launch in the second half of this year
    high materiality
    High
    Trodelvy FDA decisions for first-line metastatic TNBC
    expected in the second half of 2026
    high materiality
    High
    Bulevirtide US launch
    2026
    medium materiality
    High
    islatravir + lenacapavir Phase III update
    first half of 2026
    medium materiality
    High
    Trodelvy ASCENT-GYN-01 update
    second half of this year
    medium materiality
    High
    Trodelvy EVOKE-03 update
    this year
    medium materiality
    High
    Livdelzi IDEAL study update
    Later this year
    medium materiality
    High
    lenacapavir + broadly neutralizing antibodies Phase III trial initiation
    second half of the year
    medium materiality
    High
    anito-cel iMMagine-3 filing
    2027 filing
    medium materiality
    High
    once-yearly lenacapavir for PrEP availability
    as early as 2028
    medium materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    HIV
    Driven by higher demand for Biktarvy and Descovy, as well as the launch of Yeztugo. Sequentially, sales were up due to seasonal inventory dynamics, higher average realized price from favorable channel mix, and demand. Full year sales were $20.8 billion, up 6% year-over-year, driven by strong underlying demand growth.
    $5.8 billion6%10%
    Liver Disease
    Driven by continued strength for Livdelzi in primary biliary cholangitis (PBC). Full year sales of $3.2 billion were up 6% year-over-year, primarily driven by higher demand and partially offset by lower average realized price.
    $844 million17%3%
    Trodelvy (Oncology)
    Driven by higher demand in metastatic breast cancer treatment. Full year 2025 sales increased 6% to $1.4 billion, which more than offset the expected impact from the bladder cancer withdrawal in the U.S. at the end of 2024.
    $384 million8%8%
    Cell Therapy
    Sequentially up due to higher-than-expected patient treatments in advance of holidays and one-time pricing adjustments. Full year sales were $1.8 billion, down 7% year-over-year, reflecting ongoing in and out-of-class competition.
    $458 million-6%6%
    Veklury
    Full year 2025 Veklury revenue was $911 million, a decline of $900 million or 49% from 2024, mostly in line with expectations given lower COVID-19-related hospitalization trends.
    $212 million

    Operational metrics

    28
    HIV business growth excluding Part D headwind
    10%
    Full Year 2025

    HIV business growth absent the estimated $900 million headwind from Part D redesign.

    Base business sales growth excluding Part D headwind
    8%
    Full Year 2025

    Total product sales excluding Veklury and the impact of the Part D redesign.

    Biktarvy treatment market growth
    2% to 3%
    Annually

    Reflects demand-led growth in the HIV treatment market.

    HIV prevention business growth
    53%YoY
    Q4 2025

    Driven by favorable access, strong commercial execution, and continued U.S. market growth.

    U.S. HIV prevention market growth
    approximately 13%YoY
    Q4 2025

    Underlying market growth for HIV prevention in the U.S.

    Yeztugo payer coverage
    90%exceeded target
    Q4 2025

    Achieved ahead of the 1-year target, including all major payers.

    Yeztugo $0 co-pay access
    approximately 90%
    Q4 2025

    Percentage of covered individuals who can access Yeztugo with no co-pay.

    Livdelzi sequential growth
    42%QoQ
    Q4 2025

    Driven by strong patient demand, further accelerated by the withdrawal of a competitor product.

    Product gross margin
    86.4%
    Full Year 2025

    In line with guidance of 86%.

    R&D expenses
    $5.7 billiondown 1% compared to 2024
    Full Year 2025

    In line with guidance of R&D flat on a dollar basis for 2025.

    Acquired IPR&D expenses
    approximately $1 billion
    Full Year 2025

    In line with expected annual investment in earlier-stage opportunities.

    SG&A expenses
    $5.6 billiondown 5% compared to 2024
    Full Year 2025

    Within guidance range, reflecting lower general and administrative expenses, partially offset by sales and marketing investments.

    Operating margin
    45%
    Full Year 2025

    Overall operating margin for the full year.

    Operating margin excluding acquired IPR&D and nonrecurring other revenue
    roughly 48%
    Full Year 2025

    Adjusted operating margin, highlighting expense discipline.

    Non-GAAP effective tax rate
    18.3%down from 25.9% in 2024
    Full Year 2025

    Roughly in line with guidance of approximately 19%, primarily driven by prior year nondeductible acquired IPR&D charge.

    Non-GAAP diluted EPS
    $8.15
    Full Year 2025

    In line with guidance of $8.05 to $8.25.

    Non-GAAP diluted EPS increase excluding CymaBay impact
    $0.40compared to 2024
    Full Year 2025

    Increase in EPS after excluding the impact of the CymaBay transaction.

    CymaBay transaction non-GAAP diluted EPS impact
    approximately $3.14
    Full Year 2025

    Impact per share related to the CymaBay acquisition.

    R&D expenses
    $1.6 billiondown 3% relative to the same period in 2024
    Q4 2025

    Quarterly R&D expenses.

    SG&A expenses
    $1.7 billiondown 9% year-over-year
    Q4 2025

    Quarterly SG&A expenses, primarily due to lower G&A expenses.

    Non-GAAP diluted EPS
    $1.86compared to $1.90 in the same period in 2024
    Q4 2025

    Quarterly non-GAAP diluted EPS.

    HIV business growth excluding headwinds
    8%
    Full Year 2026

    Underlying HIV business growth absent the approximate 2% headwind from drug pricing agreement and ACA changes.

    Return to shareholders
    $5.9 billion
    Full Year 2025

    Total capital returned to shareholders in 2025.

    Share repurchases
    $1.9 billion
    Full Year 2025

    Primarily intended to offset equity dilution, in addition to opportunistic repurchases.

    Fourth-line multiple myeloma market size
    $3.5 billion
    Annual

    Market size for fourth-line multiple myeloma, relevant for anito-cel.

    Trodelvy first-line metastatic TNBC addressable population
    approximately 10,000
    Annual

    Estimated number of women in the first-line setting for metastatic triple-negative breast cancer.

    Trodelvy second-line TNBC duration of treatment
    4 to 5 months
    Average

    Typical duration of treatment for Trodelvy in second-line triple-negative breast cancer.

    Trodelvy first-line TNBC duration of treatment
    9 to 10 months
    Average

    Expected duration of treatment for Trodelvy in first-line triple-negative breast cancer, approximately double the second-line.

    Industry KPIs

    8
    MetricValueDetails
    Capital deployment$5.9 billionUSD
    Launch access metrics90%%
    Patent cliff loe bridgenone
    Pipeline read out calendar5readouts
    Regulatory approvals filings5decisions
    Peak long term sales guidanceblockbuster status
    Prescription volume new starts2% to 3%%
    Clinical trial efficacy safety data96%%

    Risks & headwinds

    6
    Medicare Part D redesign impact on HIV business2025

    estimated $900 million headwind

    Cell therapy competitive headwinds2025 and 2026

    down 7% year-over-year in 2025; expected to decline approximately 10% in 2026

    Mitigation: Preparing for anito-cel launch, focusing on differentiated profile and manufacturing capabilities.

    Impact of growing number of clinical trials on cell therapy volumes2025 and 2026

    volumes being impacted

    Veklury sales decline2025 and 2026

    $900 million decline in 2025; approximately $300 million headwind in 2026

    Mitigation: Expected to be more than offset by growth in the base business.

    Drug pricing agreement with U.S. government2026

    approximate 2% headwind to HIV growth

    Proposed changes to the Affordable Care Act (ACA)2026

    approximate 2% headwind to HIV growth

    Q&A highlights

    10

    Can you elaborate on the assumptions driving the $800 million guidance for Yeztugo in 2026, and what refill rates are anticipated for patients needing redosing?

    Management is excited about Yeztugo's strong momentum, with key launch indicators tracking or exceeding expectations, including 90% payer coverage and 90% $0 co-pay access. They expect durable, sustained long-term growth beyond 2026. While early data on persistency is encouraging, it's too soon for specific assumptions, but efforts are underway to ensure patient adherence for second injections and beyond through auto-refill scripts, specialty pharmacy outreach, and digital reminders.

    All of our key launch indicators are basically tracking or exceeding our expectation. And that includes, of course, access, which is where it starts with about 90% payer coverage.

    asked by Chris Schott · answered by Johanna Mercier

    3 min read6 chapters

    Detailed Narrative

    01

    HIV Business Performance and Prevention Market Expansion

    Gilead's HIV business demonstrated robust growth in 2025, with sales up 6% year-over-year to $20.8 billion, driven by strong demand for Biktarvy and a 47% increase in the HIV prevention portfolio. This performance was achieved despite an estimated $900 million headwind from Medicare Part D redesign. The launch of Yeztugo has been particularly successful, exceeding 90% payer coverage ahead of target and contributing $150 million in sales in 2025, with an expected $800 million in 2026. The company anticipates continued growth in HIV prevention, with Yeztugo expanding the addressable population and potentially becoming the market leader.

    02

    Oncology and Liver Disease Momentum

    Trodelvy sales increased 6% to $1.4 billion in 2025, primarily due to higher demand in metastatic triple-negative breast cancer, offsetting the bladder cancer withdrawal. Positive Phase III data from ASCENT-03 and ASCENT-04 have led to NCCN guideline updates, positioning Trodelvy as the only ADC recommended for first-line PD-L1 positive and negative, as well as second-line metastatic TNBC. In liver disease, Livdelzi achieved remarkable sequential growth of 42% in Q4 to $150 million, securing over 50% market share in second-line PBC following a competitor's withdrawal. Updates from the Phase III IDEAL study are expected in 2026.

    03

    Cell Therapy Headwinds and Future Opportunities

    Cell therapy sales declined 7% year-over-year to $1.8 billion in 2025, attributed to ongoing in-class and out-of-class competition, and the impact of a growing number of clinical trials. A further decline of approximately 10% is projected for 2026. Despite these headwinds, the company is preparing for the potential launch of anito-cel in the second half of 2026 for fourth-line or later relapsed/refractory multiple myeloma, based on strong Phase II data showing 96% overall response and 74% complete response. Future opportunities include a Phase III study for anito-cel in earlier lines of multiple myeloma.

    04

    Robust Pipeline and Upcoming Catalysts

    Gilead boasts a strong pipeline with up to 10 ongoing and potential new launches through 2027, including four targeted commercial launches and five Phase III readouts in 2026. Key upcoming milestones include Phase III updates for islatravir plus lenacapavir in HIV, Trodelvy in metastatic non-small cell lung cancer and advanced endometrial cancer, and Livdelzi in PBC. The company also anticipates five FDA decisions in 2026, covering Bulevirtide, BIC/LEN, Trodelvy in first-line TNBC, and anito-cel.

    05

    Strategic Diversification and Financial Discipline

    The company's diversification strategy over the past six years has resulted in a robust internal portfolio built through original research, early-stage partnerships, and M&A. Gilead remains committed to operating expense and M&A discipline, investing approximately $1 billion annually in early-stage opportunities. Management emphasized a proactive and disciplined approach to later-stage acquisitions, aiming to add synergistic, de-risked assets to turbocharge top-line growth, while noting no major product LOEs until 2036.

    06

    Long-Acting HIV Treatment Development

    Gilead is advancing a comprehensive HIV pipeline, with lenacapavir as a backbone, aiming for up to seven additional product launches by 2033, including daily, weekly, monthly, twice-yearly, and yearly treatments. The company has prioritized GS-3242, a long-acting INSTI, for development as a potential twice-yearly HIV treatment in combination with lenacapavir, citing its favorable tolerability and resistance profile. Development of GS-1219 and GS-1614 has been discontinued to focus on the most promising programs.

    AI-generated summary of the company’s earnings call. Not investment advice.