Gilead Sciences (GILD) Q4 2023 earnings summary

Executive summary

• FY23 revenue declined 1% to $27.1B; product sales were $26.9B and flat YoY, while sales excluding Veklury rose 7% to $24.7B, led by HIV and Oncology.

• Q423 revenue fell 4% to $7.1B; product sales excluding Veklury were $6.35B, flat YoY.

• FY23 GAAP diluted EPS was $4.50 vs. $3.64; non-GAAP diluted EPS was $6.72 vs. $7.26.

Financial highlights

• FY23 non-GAAP operating income was $10.5B, down 14%; non-GAAP net income was $8.5B, down 8%, and diluted EPS was $6.72, down 7%.

• Q423 non-GAAP operating income was $2.7B, up 1%; non-GAAP net income was $2.2B and diluted EPS was $1.72, both up 3% YoY.

• Q423 GAAP diluted EPS was $1.14 vs. $1.30; non-GAAP diluted EPS rose to $1.72 from $1.67.

• FY23 operating cash flow was $8.0B and free cash flow was $7.4B, compared with $9.1B and $8.3B in 2022.

• Year-end cash, cash equivalents, and marketable debt securities totaled $8.4B, up from $7.6B; Q423 operating cash flow was $2.2B.

Outlook and guidance

• FY24 product sales guidance is $27.1B–$27.5B, including $1.3B of Veklury; sales excluding Veklury are guided to $25.8B–$26.2B, up 4–6%.

• FY24 non-GAAP diluted EPS guidance is $6.85–$7.25; GAAP diluted EPS guidance is $5.15–$5.55.

• FY24 non-GAAP operating income guidance is $11.2B–$11.7B and non-GAAP gross margin is 85–86%; R&D expense is expected to grow low- to mid-single digits.

• FY24 HIV sales are expected to grow ~4%; Q124 HIV sales are expected to decline 10–12% from Q423 on seasonality, while cell therapy sales are expected flat to slightly higher.