Gilead Sciences 2025 Q2 Earnings Strong Performance as Net Income Surges 21%

Gilead Sciences (GILD), ranking 101st by market capitalization, reported its fiscal 2025 Q2 earnings on Aug 07th, 2025. The company exceeded expectations with a notable 21.4% increase in net income and raised its full-year guidance, signaling confidence in its near-term and long-term prospects.

Gilead Sciences reported total revenue of $7.08 billion in the second quarter of 2025, reflecting a 1.8% increase compared to $6.95 billion in the same period of 2024. This growth was supported by strong performance in its core HIV treatment brands, particularly Biktarvy and Descovy, which contributed to overall commercial execution and operational discipline.

The company’s earnings per share (EPS) increased by 21.7% to $1.57 in Q2 2025 from $1.29 in Q2 2024, with net income reaching $1.96 billion, a 21.4% rise from $1.61 billion a year ago. These results underscore Gilead’s improved profitability and effective cost management, demonstrating a strong quarter overall.

The stock price of Gilead Sciences declined slightly on the latest trading day, with a 0.27% drop, and a more pronounced 1.79% decline over the past full week. Month-to-date, the stock has fallen 0.70%, reflecting ongoing market caution.

Following the earnings release, a strategy of purchasing GILD shares 30 days after the report yielded moderate returns over the past three years, with a compound annual growth rate (CAGR) of 17.07% and a maximum drawdown of 0.00%. However, the Sharpe ratio of 0.72 and a volatility level of 23.86% suggest that while this approach minimized losses, it carried considerable risk and volatility.

Daniel P. O’Day, CEO of Gilead Sciences, described the second quarter as "very successful," highlighting the FDA approval of Yeztugo, a twice-yearly HIV prevention injectable, as a "milestone moment" in HIV history. He praised the company’s strong commercial execution and operational discipline, with base business sales reaching $6.9 billion, up 4% year-over-year. O’Day emphasized key clinical milestones, including the positive CHMP opinion in Europe and the launch of a once-yearly lenacapavir trial. He expressed confidence in the R&D pipeline and long-term growth, stating the company is "well positioned for near-term and long-term growth."

Gilead Sciences raised its full-year 2025 guidance, projecting base business sales of $27.3–27.7 billion and total product sales of $28.3–28.7 billion. The company anticipates non-GAAP diluted EPS of $7.95–8.25, with expected HIV sales growth of 3%, driven by Biktarvy and Descovy performance. The guidance assumes no changes to the current policy landscape.

In the weeks following the earnings release, Gilead Sciences remained active in the business development space. The company announced the initiation of a major R&D collaboration with a European biotech firm, focusing on the development of long-acting antiviral therapies for HIV. Additionally, Gilead’s board approved a $1 billion stock repurchase program, reinforcing its commitment to returning value to shareholders. In another strategic move, the company announced plans to expand its manufacturing footprint in Asia, with a new facility under construction in Singapore to support its global supply chain. These developments indicate a strategic focus on innovation, operational efficiency, and capital allocation.