Gilead Sciences (GILD) Q4 2025 earnings summary

Executive summary

• Full-year 2025 product sales reached $28.9B, up 1% year-over-year, with HIV and liver disease sales each growing 6%, and Trodelvy oncology sales up 6%, despite a $900M Medicare Part D headwind.

• HIV prevention portfolio, led by Sunlenca and Yeztugo, saw rapid adoption and exceeded coverage goals, with Sunlenca/Yeztugo expected to reach $800M in 2026.

• Major launches included Yeztugo for HIV prevention and Livdelzi for liver disease, with Biktarvy and Descovy showing strong performance.

• Oncology sales were flat, with Trodelvy up 6% to $1.4B and cell therapy down 7% to $1.8B; Veklury sales declined 49% to $911M.

• Up to 10 ongoing and potential new launches through 2027, with a robust clinical pipeline and no major LOEs until 2036.

Financial highlights

• Non-GAAP diluted EPS for 2025 was $8.15, up 77% year-over-year, with product gross margin at 86.4%.

• FY25 non-GAAP operating margin improved to 45% from 30% in FY24.

• Q4 2025 base business sales grew 7% year-over-year and 9% sequentially, led by HIV and Livdelzi.

• Q4 2025 non-GAAP EPS was $1.86, down 2% year-over-year due to higher acquired IPR&D expenses.

• Operating cash flow for Q4 was $3.3B; cash, cash equivalents, and marketable debt securities totaled $10.6B at year-end.

Outlook and guidance

• 2026 total product sales expected between $29.6B–$30B; base business sales to grow 4%–5%.

• HIV sales projected to grow 6% in 2026; Sunlenca/Yeztugo revenue expected at $800M.

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

• Non-GAAP operating income for 2026 expected between $13.8B–$14.3B; EPS guidance of $8.45–$8.85.

• 2% headwind to 2026 growth from drug pricing agreement and ACA changes; underlying growth would be 6%–7% absent these.