Gilead Sciences (GILD) Q3 2025 Financial Results Summary
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Gilead Sciences (GILD) Q3 2025 Financial Results Summary
Gilead Sciences, Inc. (Nasdaq: GILD) announced its third-quarter 2025 financial results on October 30, 2025. Below is a summary of the key metrics and developments from the report.
Financial Highlights
- Total Revenues: Increased by 3% to $7.8 billion compared to Q3 2024.
- Product Sales: Decreased by 2% to $7.3 billion primarily due to lower Veklury (remdesivir) and Cell Therapy sales, slightly offset by increased sales in HIV and Livdelzi (seladelpar).
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Royalty, Contract, and Other Revenues: Increased by approximately $400 million compared to Q3 2024.
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Earnings Per Share (EPS):
- GAAP EPS: Increased to $2.43 from $1.00 in Q3 2024.
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Non-GAAP EPS: Increased to $2.47 from $2.02 in Q3 2024.
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Operating Cash Flow: Generated $4.1 billion in Q3 2025.
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Cash Position: As of September 30, 2025, Gilead had $9.4 billion in cash, cash equivalents, and marketable debt securities, down from $10.0 billion as of December 31, 2024.
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Dividends and Stock Repurchase:
- Gilead declared a quarterly dividend of $0.79 per share, payable on December 30, 2025.
- The company also repurchased $435 million of common stock during the quarter.
Product Sales Overview
- Total Product Sales: Decreased 2% to $7.3 billion compared with the same period last year.
- Product Sales Excluding Veklury: Increased 4% to $7.1 billion.
- HIV Product Sales: Increased 4% to $5.3 billion.
- Biktarvy Sales: Increased 6% to $3.7 billion, reflecting higher demand.
- Descovy Sales: Increased 20% to $701 million.
- Liver Disease Sales: Increased 12% to $819 million due to higher demand for Livdelzi.
- Veklury Sales: Decreased 60% to $277 million due to reduced COVID-19-related hospitalizations.
- Cell Therapy Sales: Decreased 11% to $432 million amid competitive pressures.
- Yescarta Sales: Decreased 10% to $349 million.
Gross Margins and Expenses
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Product Gross Margin: Remained relatively stable at 78.6% compared to 79.1% in Q3 2024.
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Research and Development (R&D) Expenses: Decreased to $1.3 billion, down from $1.4 billion in Q3 2024, due to lower study-related expenses.
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Selling, General and Administrative (SG&A) Expenses: Remained stable at $1.4 billion, comparable to Q3 2024.
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Effective Tax Rate: Stood at 16.2%, a significant increase from (31.1%) in the prior year, influenced by previous restructuring impacts.
Guidance and Outlook
For the full year 2025, Gilead updated its financial guidance as follows:
– Product Sales: Estimated between $28.4 billion and $28.7 billion (previously $28.3 billion to $28.7 billion).
– Product Sales Excluding Veklury: Estimated between $27.4 billion and $27.7 billion (up from $27.3 billion to $27.7 billion).
– Diluted EPS: Estimated between $6.65 and $6.85 (up from previous guidance of $5.85 to $6.15).
– Non-GAAP Diluted EPS: Estimated between $8.05 and $8.25 (previously $7.95 to $8.25).
Key Updates and Developments
- Gilead announced ongoing litigation settlements for Biktarvy with generic manufacturers, extending exclusivity to April 1, 2036.
- Received strong recommendations for twice-yearly injectable Yeztugo for HIV prevention, enhancing market position.
- Acknowledged partnerships with U.S. PEPFAR to provide HIV treatment in resource-limited settings.
- Moodys affirmed Gilead’s A3 senior unsecured rating with a positive outlook, buoyed by product pipeline momentum.
In summary, despite challenges with certain product sales, Gilead Sciences continues to perform well overall, demonstrating growth in critical therapeutic areas and maintaining a strong financial position. The company is also investing significantly in its future through new initiatives and promising product development.
Here are the two extracted tables from the press release:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions)
| Revenues: | Three Months Ended | Nine Months Ended | ||
|---|---|---|---|---|
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |
| Product sales | $ 7,345 | $ 7,515 | $ 21,013 | $ 21,074 |
| Royalty, contract and other revenues | 424 | 30 | 505 | 111 |
| Total revenues | 7,769 | 7,545 | 21,518 | 21,185 |
| Costs and expenses: | ||||
| Cost of goods sold | 1,569 | 1,574 | 4,610 | 4,670 |
| Research and development expenses | 1,346 | 1,395 | 4,215 | 4,266 |
| Acquired in-process research and development | 170 | 505 | 485 | 4,674 |
| Impairments | — | 1,750 | 190 | 4,180 |
| Selling, general and administrative expenses | 1,357 | 1,433 | 3,980 | 4,184 |
| Total costs and expenses | 4,442 | 6,657 | 13,480 | 21,975 |
| Operating income (loss) | 3,327 | 888 | 8,038 | -790 |
| Interest expense | 256 | 238 | 769 | 728 |
| Other (income) expense, net | -569 | -306 | -449 | -41 |
| Income (loss) before income taxes | 3,641 | 956 | 7,718 | -1,477 |
| Income tax expense (benefit) | 589 | -297 | 1,391 | -174 |
| Net income (loss) | 3,052 | 1,253 | 6,327 | -1,303 |
| Net income (loss) attributable to Gilead | $ 3,052 | $ 1,253 | $ 6,327 | $ -1,303 |
| Basic earnings (loss) per share | $ 2.46 | $ 1.00 | $ 5.08 | $ -1.04 |
| Diluted earnings (loss) per share | $ 2.43 | $ 1.00 | $ 5.04 | $ -1.04 |
| Shares used in basic earnings (loss) per share | 1,243 | 1,247 | 1,245 | 1,247 |
| Shares used in diluted earnings (loss) per share | 1,254 | 1,254 | 1,256 | 1,247 |
| Supplemental Information: | ||||
| Cash dividends declared per share | $ 0.79 | $ 0.77 | $ 2.37 | $ 2.31 |
| Product gross margin | 78.6 % | 79.1 % | 78.1 % | 77.8 % |
| Research and development expenses as a % | 17.3 % | 18.5 % | 19.6 % | 20.1 % |
| Selling, general and administrative expenses as a % | 17.5 % | 19.0 % | 18.5 % | 19.8 % |
| Operating margin | 42.8 % | 11.8 % | 37.4 % | -3.7 % |
| Effective tax rate | 16.2 % | -31.1 % | 18.0 % | 11.8 % |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
| Assets | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Cash, cash equivalents and marketable debt securities | $ 9,354 | $ 9,991 |
| Accounts receivable, net | 5,095 | 4,420 |
| Inventories(1) | 4,387 | 3,589 |
| Property, plant and equipment, net | 5,500 | 5,414 |
| Intangible assets, net | 17,970 | 19,948 |
| Goodwill | 8,314 | 8,314 |
| Other assets | 7,914 | 7,319 |
| Total assets | $ 58,533 | $ 58,995 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities | $ 12,298 | $ 12,004 |
| Long-term liabilities | 24,780 | 27,744 |
| Stockholders’ equity(2) | 21,456 | 19,246 |
| Total liabilities and stockholders’ equity | $ 58,533 | $ 58,995 |