10-QPeriod: Q3 FY2025

GILEAD SCIENCES, INC. Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 7, 2025For Securities:GILD

Summary

Gilead Sciences, Inc. reported solid financial results for the third quarter and first nine months of 2025, demonstrating revenue growth and a significant turnaround in profitability compared to the prior year. Total revenues for the third quarter of 2025 increased by 3% year-over-year to $7.8 billion, driven by strong performance in the HIV and Liver Disease segments, alongside a notable surge in royalty, contract, and other revenues. For the first nine months, total revenues grew 2% to $21.5 billion. The company achieved substantial net income of $3.1 billion for the quarter and $6.3 billion for the nine-month period, a significant improvement from the net loss reported in the comparable periods of 2024. This profitability boost was largely attributed to the absence of substantial impairment charges seen in the prior year, coupled with increased royalty income and lower acquired R&D expenses. Diluted earnings per share also saw a strong recovery, reflecting these improved financial outcomes.

Financial Highlights

55 data points
Beta

Revenue

$7.77B

79.8% Gross Margin

Net Income

$3.05B

39.3% Net Margin

EPS (Diluted)

$2.43

Total Assets

$58.53B

Cash & Equivalents

$7.33B

Free Cash Flow

$3.96B

Financial Statements
Beta
Revenue$7.77B
Cost of Revenue$1.57B
Gross Profit$6.20B
SG&A Expenses$1.36B
Operating Expenses$4.44B
Operating Income$3.33B
Net Income$3.05B
EPS (Basic)$2.46
EPS (Diluted)$2.43
Shares Outstanding (Basic)1.24B
Shares Outstanding (Diluted)1.25B

Key Highlights

  • 1Total revenues increased by 3% to $7.8 billion for Q3 2025 and by 2% to $21.5 billion for the first nine months of 2025.
  • 2Net income attributable to Gilead was $3.1 billion for Q3 2025, a significant improvement from $1.3 billion in Q3 2024. For the first nine months, net income was $6.3 billion compared to a net loss of $1.3 billion in the prior year.
  • 3HIV product sales grew 4% in Q3 and 6% year-to-date, primarily driven by Biktarvy and Descovy.
  • 4Liver Disease product sales saw a robust 12% increase in Q3 and 3% year-to-date, boosted by Livdelzi and HBV products.
  • 5Veklury sales experienced a substantial decline of 60% in Q3 and 52% year-to-date, reflecting decreased COVID-19 hospitalizations.
  • 6Significant R&D impairments seen in 2024 did not recur in 2025, contributing to improved profitability.
  • 7Gilead announced a settlement resolving Biktarvy patent litigation with generic manufacturers, extending exclusivity to at least April 2036 in the U.S.

Frequently Asked Questions

Revenue growth in Q3 2025 was primarily driven by higher sales in the HIV segment (up 4%), particularly Biktarvy and Descovy, and the Liver Disease segment (up 12%), led by Livdelzi. Additionally, royalty, contract, and other revenues significantly increased, largely due to the recognition of previously constrained revenues from intellectual property sales.

Gilead demonstrated a significant improvement in profitability. Net income for Q3 2025 was $3.1 billion, compared to $1.3 billion in Q3 2024. This turnaround was primarily due to the absence of large in-process R&D impairment charges recorded in the prior year, lower acquired R&D expenses, higher royalty revenues, and positive net unrealized gains on equity securities.

Gilead announced settlement agreements to resolve patent litigation with generic manufacturers Lupin Ltd., Cipla Ltd., and Laurus Labs Ltd. These agreements mean that the earliest these specific generic manufacturers can market a generic version of full-dose Biktarvy in the U.S. is April 1, 2036, which is more than two years later than previously projected.

Veklury sales have declined significantly (60% in Q3 and 52% year-to-date) due to lower rates of COVID-19-related hospitalizations. This trend is expected to continue as the pandemic's impact diminishes, suggesting lower future sales for this product.