01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Gilead Sciences, Inc. reported solid financial performance for the second quarter of fiscal year 2025, with total revenues reaching $7.08 billiona, a 2% increase year-over-year.
This growth was primarily driven by strong performance in the HIV segment, particularly from Biktarvy and Descovy sales, which saw significant increases. The company also experienced growth in Trodelvy sales within its Oncology segment. Net income attributable to Gilead surged by 21% to $1.96 billionb, with diluted earnings per share rising to $1.56.
This improvement was bolstered by higher product sales and a favorable swing in unrealized gains on equity securities compared to the prior year. However, the company did incur a $190 millionc impairment charge related to its bulevirtide IPR&D intangible asset due to increased market competition. Despite this, Gilead's robust product sales, particularly in HIV, and a more favorable equity investment performance contributed to a strong quarter.
02—Key points
Key Highlights
- Total revenues grew 2% to $7.08 billion for Q2 2025, driven by strong HIV product sales.
- HIV product sales increased by 7% to $5.09 billion, with Biktarvy up 9% and Descovy up 35%.
- Trodelvy sales saw a 14% increase, reaching $364 million for the quarter.
- Net income attributable to Gilead increased 21% to $1.96 billion.
- Diluted EPS rose to $1.56, a 21% increase compared to the prior year's quarter.
- A $190 million impairment charge was recognized for bulevirtide IPR&D assets due to increased market competition.
- Cash and cash equivalents stood at $5.14 billion as of June 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Gilead Sciences, Inc. kept $0.28.
- Revenue$7.08B100.0%
- Cost of revenue−$1.50B21.2%
- Gross profit$5.58B78.8%
- Operating costs−$3.11B43.9%
- Operating income$2.47B34.9%
- Interest, other & tax−$514.0M7.3%
- Net income$1.96B27.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $7.08B$6.95B | +1.8% |
| Cost of Revenue | $1.50B$1.54B | −2.8% |
| Gross Profit | $5.58B$5.41B | +3.2% |
| SG&A Expenses | $1.36B$1.38B | −0.9% |
| Operating Expenses | $4.61B$4.31B | +6.9% |
| Operating Income | $2.47B$2.64B | −6.4% |
| Net Income | $1.96B$1.61B | +21.4% |
| EPS (Basic) | $1.57$1.29 | +21.7% |
| EPS (Diluted) | $1.56$1.29 | +20.9% |
| Shares Outstanding (Basic) | 1.25B1.25B | −0.2% |
| Shares Outstanding (Diluted) | 1.25B1.25B | +0.3% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the second quarter of 2025?
Revenue growth was primarily driven by a 7% increase in HIV product sales, totaling $5.09 billion. This was mainly due to higher demand and average realized prices for Biktarvy and Descovy. Additionally, Trodelvy sales in the Oncology segment also contributed positively with a 14% increase.
What is the impact of the bulevirtide IPR&D impairment charge?
Gilead recognized a $190 million impairment charge for its bulevirtide In-Process Research and Development (IPR&D) intangible asset. This charge was due to the evaluation of new competitive clinical data indicating a more challenging market environment for bulevirtide where it is not yet approved. While this impacted operating results for the quarter, the company's overall financial performance remained strong due to other segments.
How is Gilead managing its cash and liquidity?
As of June 30, 2025, Gilead reported cash and cash equivalents of $5.14 billion and marketable debt securities of $2.0 billion. For the first six months of 2025, net cash provided by operating activities was $2.58 billion. The company's capital priorities include investing in R&D, strategic partnerships, growing its dividend, and share repurchases. Gilead believes it has sufficient liquidity to meet its needs for the next 12 months and the foreseeable future.
What are the key risks highlighted in the filing regarding product sales and legal matters?
Gilead faces significant risks including competition from generic manufacturers, particularly for Biktarvy, and ongoing patent litigation. The company is also involved in various antitrust and consumer protection lawsuits related to HIV drugs and product liability lawsuits concerning kidney, bone, and tooth injuries allegedly caused by certain HIV medications. While the company intends to defend itself vigorously, adverse outcomes could materially impact its financial condition.
06—Continue