10-QPeriod: Q2 FY2025

GILEAD SCIENCES, INC. Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 7, 2025For Securities:GILD

Summary

Gilead Sciences, Inc. reported solid financial performance for the second quarter of fiscal year 2025, with total revenues reaching $7.08 billion, 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 billion, 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 million 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.

Financial Highlights

55 data points
Beta

Revenue

$7.08B

78.8% Gross Margin

Net Income

$1.96B

27.7% Net Margin

EPS (Diluted)

$1.56

Total Assets

$55.72B

Cash & Equivalents

$5.14B

Free Cash Flow

$720.00M

Financial Statements
Beta
Revenue$7.08B
Cost of Revenue$1.50B
Gross Profit$5.58B
SG&A Expenses$1.36B
Operating Expenses$4.61B
Operating Income$2.47B
Net Income$1.96B
EPS (Basic)$1.57
EPS (Diluted)$1.56
Shares Outstanding (Basic)1.25B
Shares Outstanding (Diluted)1.25B

Key Highlights

  • 1Total revenues grew 2% to $7.08 billion for Q2 2025, driven by strong HIV product sales.
  • 2HIV product sales increased by 7% to $5.09 billion, with Biktarvy up 9% and Descovy up 35%.
  • 3Trodelvy sales saw a 14% increase, reaching $364 million for the quarter.
  • 4Net income attributable to Gilead increased 21% to $1.96 billion.
  • 5Diluted EPS rose to $1.56, a 21% increase compared to the prior year's quarter.
  • 6A $190 million impairment charge was recognized for bulevirtide IPR&D assets due to increased market competition.
  • 7Cash and cash equivalents stood at $5.14 billion as of June 30, 2025.

Frequently Asked Questions

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.

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.

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.

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.