01—Abstract
Summary
Summary of the 10-Q filed November 7, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Total 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.
- Net 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.
- HIV product sales grew 4% in Q3 and 6% year-to-date, primarily driven by Biktarvy and Descovy.
- Liver Disease product sales saw a robust 12% increase in Q3 and 3% year-to-date, boosted by Livdelzi and HBV products.
- Veklury sales experienced a substantial decline of 60% in Q3 and 52% year-to-date, reflecting decreased COVID-19 hospitalizations.
- Significant R&D impairments seen in 2024 did not recur in 2025, contributing to improved profitability.
- Gilead announced a settlement resolving Biktarvy patent litigation with generic manufacturers, extending exclusivity to at least April 2036 in the U.S.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Gilead Sciences, Inc. kept $0.39.
- Revenue$7.77B100.0%
- Cost of revenue−$1.57B20.2%
- Gross profit$6.20B79.8%
- Operating costs−$2.87B37.0%
- Operating income$3.33B42.8%
- Interest, other & tax−$275.0M3.5%
- Net income$3.05B39.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 7, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $7.77B$7.54B | +3.0% |
| Cost of Revenue | $1.57B$1.57B | −0.3% |
| Gross Profit | $6.20B$5.97B | +3.8% |
| SG&A Expenses | $1.36B$1.43B | −5.3% |
| Operating Expenses | $4.44B$6.66B | −33.3% |
| Operating Income | $3.33B$888.00M | +274.7% |
| Net Income | $3.05B$1.25B | +143.6% |
| EPS (Basic) | $2.46$1.00 | +146.0% |
| EPS (Diluted) | $2.43$1.00 | +143.0% |
| Shares Outstanding (Basic) | 1.24B1.25B | −0.3% |
| Shares Outstanding (Diluted) | 1.25B1.25B | 0.0% |
05—Questions
Frequently Asked Questions
What were the primary drivers of revenue growth in Q3 2025?
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.
How did Gilead's profitability change compared to the previous year?
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.
What is the status of the Biktarvy patent litigation?
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.
What is the outlook for Veklury sales?
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.
06—Continue