Gilead Sciences Inc.: Revenue Growth but Margins Narrower – Post Earnings Analysis

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Gilead Sciences Inc.: Revenue Growth but Margins Narrower – Post Earnings Analysis

Ticker: GILD

Current Price: $120.74
+1.94%
on October 31, 2025

Gilead Sciences, Inc. is a leading biopharmaceutical company dedicated to addressing unmet medical needs through innovative research and development. Founded in 1987 and headquartered in Foster City, CA, Gilead specializes in antiviral therapies, particularly for HIV/AIDS, liver diseases, hematology, oncology, and respiratory conditions. Its notable product portfolio includes well-known brands like Harvoni, Genvoya, and Sovaldi, highlighting its commitment to advancing healthcare.

📰 Recent Developments

Gilead Sciences Inc. announced third-quarter 2024 financial results, reporting total revenues of $7.07 billion, a 6% increase year-over-year, driven by robust performance in HIV treatments and oncology products. Veklury sales for COVID-19 treatment reached $472 million, while HIV franchise revenues grew 5% to $4.4 billion, led by Biktarvy.

The company provided updates on its pipeline, including positive Phase 3 data for lenacapavir, an investigational long-acting HIV prevention option, showing 100% efficacy in trial results, with plans for regulatory submissions in 2025.

Gilead expanded its oncology efforts through a strategic collaboration with Arcus Biosciences to co-develop domvanalimab-based therapies for lung cancer, including a $245 million upfront payment.

Regulatory progress included FDA approval of Livdelzi for primary biliary cholangitis treatment, enhancing the company’s liver disease portfolio.

Operationally, Gilead initiated manufacturing expansions at its Oceanside facility to boost biologics production capacity by 50% over the next two years. No management changes were reported.

📊 Earnings Report Summary

Gilead Sciences, Inc. (GILD) reported Q3 2025 financial results with total revenues of $7.8 billion, a 3% increase from Q3 2024. Product sales decreased by 2% to $7.3 billion, largely due to a significant drop in Veklury sales, offset by growth in HIV and Livdelzi products. Earnings per share (EPS) saw substantial improvement, with GAAP EPS rising to $2.43 from $1.00 a year prior, and non-GAAP EPS increasing to $2.47 from $2.02. The company generated $4.1 billion in operating cash flow and maintained a cash position of $9.4 billion. Gilead declared a quarterly dividend of $0.79 per share and repurchased $435 million of stock during the quarter. The company updated its full-year guidance, projecting product sales between $28.4 billion and $28.7 billion and diluted EPS between $6.65 and $6.85, reflecting a positive outlook despite challenges in certain product lines.

📈 Technical Analysis

GILD Daily Chart

Daily Price Change: +1.94%

Technical Indicators

Metric Value
Current Price $119.53
Daily Change 0.92%
MA20 $119.17
MA50 $115.45
MA200 $108.69
52W High $124.61
52W Low $83.59
% from 52W High -4.08%
% from 52W Low 43.00%
YTD % 32.85%
BB Position 53.71%
RSI 55.09
MACD 1.27

The current price of $119.53 reflects a daily increase of approximately 0.92%. This positions the stock just 4.08% below its 52-week high of $124.61, while still being 43.00% above its 52-week low of $83.59, indicating strong upward momentum over the past year.

The stock is trading above its 20-day (MA20) and 50-day (MA50) moving averages, suggesting a bullish trend. The 200-day moving average (MA200) at $108.69 further supports this trend, indicating long-term strength.

The Bollinger Bands show the price is near the upper band, which could signal overbought conditions, but the current RSI of 55.09 indicates the stock is neither overbought nor oversold. The MACD value of 1.27 confirms positive momentum, suggesting potential for continued upward movement in the near term.

💰 Earnings History

Earnings Date EPS Estimate Reported EPS Surprise(%) Event Type
2025-04-24 1.79 1.81 1.4 Earnings
2025-02-11 1.7 1.9 11.58 Earnings
2024-11-06 1.55 2.02 29.99 Earnings
2024-08-08 1.6 2.01 25.65 Earnings
2024-04-25 -1.49 -1.32 11.59 Earnings
2024-02-06 1.76 1.72 -2.24 Earnings
2023-11-07 1.92 2.29 19.44 Earnings
2023-08-03 1.64 1.66 1.06 Earnings

Analyzing the EPS trends from the provided earnings data reveals a fluctuating performance over the recent quarters. The reported EPS consistently exceeds estimates in the earlier part of 2024, particularly with notable surprises of 29.99% and 25.65% in November and August, respectively. This suggests a strong operational performance or improved market conditions during that period.

However, the data also indicates a significant downturn in April 2024, where the reported EPS fell short of expectations, resulting in a negative surprise. This anomaly may indicate challenges faced by the company, possibly due to external market pressures or internal issues.

The trend appears to rebound in early 2025, with both reported EPS figures surpassing estimates again, suggesting a recovery or effective strategic adjustments. Overall, while the company demonstrates potential for strong earnings, the volatility in EPS, particularly the drop in April 2024, highlights the need for careful monitoring of operational and market dynamics moving forward.

💵 Dividend History

Date Dividend
2025-09-15 0.79
2025-06-13 0.79
2025-03-14 0.79
2024-12-13 0.77
2024-09-13 0.77
2024-06-14 0.77
2024-03-14 0.77
2023-12-14 0.75

Analyzing the provided dividend data reveals a notable trend in dividend payments over the last few years. From December 2023 to September 2025, dividends appear to follow a consistent upward trajectory, increasing from $0.75 to $0.79. This gradual rise suggests a positive outlook for the company’s financial health, as consistent or increasing dividends often reflect strong earnings and a commitment to returning value to shareholders.

The dividends for 2024 remain stable at $0.77 for three consecutive quarters, indicating a cautious yet steady approach, likely aimed at maintaining shareholder confidence during uncertain market conditions. The subsequent increase to $0.79 in 2025 may reflect improved operational performance or a strategic decision to reward investors as the company potentially capitalizes on growth opportunities.

Overall, these trends indicate a company that is not only focused on profitability but also on sustaining investor trust through reliable dividend payments, a key factor for long-term investment strategies.

⭐ Analyst Ratings

Date Status Outer Rating Price
2025-08-19 00:00:00 Upgrade Daiwa Securities Neutral → Outperform $128
2025-08-08 00:00:00 Upgrade Truist Hold → Buy $127
2025-07-25 00:00:00 Upgrade Needham Hold → Buy $133
2025-04-22 00:00:00 Resumed Cantor Fitzgerald Overweight $125

Recent rating changes reflect a positive outlook from multiple financial institutions, indicating growing confidence in specific stocks. Daiwa Securities upgraded its rating from Neutral to Outperform on August 19, suggesting an anticipated increase in performance relative to the market, with a target price of $128. Similarly, Truist’s upgrade from Hold to Buy on August 8, with a price of $127, signals a stronger recommendation based on improved fundamentals or market conditions. Needham’s upgrade from Hold to Buy on July 25, priced at $133, further emphasizes a trend of analysts recognizing potential upside. Lastly, Cantor Fitzgerald’s resumption of coverage with an Overweight rating on April 22 at $125 indicates renewed interest in the stock, likely based on recent developments or market analysis. Overall, these upgrades suggest a bullish sentiment in the market, with analysts anticipating favorable performance for these stocks in the near future.

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