Sales Performance - Total product sales for full year 2025 increased 1% to $28.9 billion compared to 2024, with sales excluding Veklury increasing 4% to $28.0 billion[13] - Biktarvy sales increased 7% to $14.3 billion for full year 2025, driven by higher demand[18] - Total fourth quarter 2025 product sales increased 5% to $7.9 billion compared to the same period in 2024, with sales excluding Veklury increasing 7% to $7.7 billion[4] - HIV product sales increased 6% to $20.8 billion for full year 2025, primarily driven by higher demand for treatment and prevention[13] - Descovy sales increased 31% to $2.8 billion for full year 2025, driven by higher demand and average realized price[18] - Total product sales for the three months ended December 31, 2025, were $7,903 million, a 5% increase from $7,536 million in the same period of 2024[42] - Total HIV product sales for the U.S. reached $4,845 million in Q4 2025, up from $4,532 million in Q4 2024, representing a growth of 6.9%[54] - Total product sales for the U.S. were $5,873 million in Q4 2025, compared to $5,550 million in Q4 2024, reflecting a growth of 5.8%[57] - Total product sales for Europe increased to $1,221 million in Q4 2025 from $1,160 million in Q4 2024, a growth of 5.3%[57] - Total Liver Disease product sales in the U.S. were $457 million in Q4 2025, up from $391 million in Q4 2024, representing a growth of 16.9%[57] Financial Performance - Diluted EPS for full year 2025 was $6.78, significantly up from $0.38 in 2024[10] - Non-GAAP diluted EPS for full year 2025 was $8.15, compared to $4.62 in 2024[12] - Gilead's operating income for the twelve months ended December 31, 2025, was $10,022 million, significantly higher than $1,662 million in 2024[40] - Gilead's net income for the three months ended December 31, 2025, was $2,183 million, an increase from $1,783 million in the same period of 2024, reflecting a growth of 22.4%[40] - GAAP net income attributable to Gilead for Q4 2025 was $2,183 million, compared to $1,783 million in Q4 2024, representing a 22.4% increase[46] - Non-GAAP net income attributable to Gilead for the twelve months ended December 31, 2025, was $10,230 million, up from $5,795 million in 2024, reflecting a 76.1% increase[46] Cash Flow and Assets - Operating cash flow generated in fourth quarter 2025 was $3.3 billion[5] - Gilead had $10.6 billion in cash, cash equivalents, and marketable debt securities as of December 31, 2025, up from $10.0 billion in 2024[5] - Total assets as of December 31, 2025, were $59,023 million, slightly up from $58,995 million in 2024[50] - Cash and cash equivalents at the end of Q4 2025 were $7,564 million, compared to $9,991 million at the end of Q4 2024[52] - Free cash flow for the twelve months ended December 31, 2025, was $9,456 million, down from $10,305 million in 2024[52] Research and Development - Research and development expenses as a percentage of revenues were 20.0% for the three months ended December 31, 2025, down from 21.7% in the same period of 2024[40] - Research and development expenses as a percentage of revenues decreased to 19.3% for the twelve months ended December 31, 2025, from 19.9% in 2024[44] - Gilead presented new positive data from the pivotal Phase 2 iMMagine-1 trial for the investigational CAR T-cell therapy anitocabtagene autoleucel at the 2025 American Society of Hematology[29] Tax and Guidance - The effective tax rate for the three months ended December 31, 2025, was (5.0)%, compared to 17.8% in the same period of 2024[40] - The effective tax rate increased to 20.5% for the three months ended December 31, 2025, from 19.2% in 2024[44] - GAAP projected effective tax rate for 2026 is approximately 21%, with a non-GAAP projected effective tax rate of around 20%[48] - Gilead expects product sales for full year 2026 to be between $29.6 billion and $30.0 billion, with diluted EPS guidance of $6.75 to $7.15[21] - Projected non-GAAP diluted EPS for 2026 is estimated to be between $8.45 and $8.85, compared to a GAAP projected diluted EPS of $6.75 to $7.15[48] Product Specific Performance - Veklury sales decreased by 37% to $212 million for the three months ended December 31, 2025, compared to $337 million in 2024[42] - Biktarvy sales in the U.S. were $3,255 million for the three months ended December 31, 2025, compared to $3,129 million for the same period in 2024, an increase of 4.0%[54] - Trodelvy sales in the U.S. were $251 million for Q4 2025, slightly up from $247 million in Q4 2024, indicating a growth of 1.6%[57] - Total Oncology product sales for the U.S. were $434 million in Q4 2025, down from $461 million in Q4 2024, reflecting a decrease of 5.9%[57] - Total product sales for the Rest of World segment decreased to $808 million in Q4 2025 from $826 million in Q4 2024, a decline of 2.2%[57] - Total HIV product sales grew by 6% to $5,801 million for the three months ended December 31, 2025, while Liver Disease product sales increased by 17% to $844 million[42]

Group 1 - Dow futures rose by 0.09%, S&P 500 futures increased by 0.10%, and Nasdaq futures gained 0.07% [1] - Philips reported Q4 2025 earnings with a 1% year-over-year sales increase to €5.1 billion and an adjusted EBITA of €770 million, exceeding market expectations, leading to a 6.89% stock increase [2] - Cisco launched a new AI network chip, "Silicon One G300," expected to enhance AI computing task speeds by 28%, utilizing TSMC's 3nm process technology [2] Group 2 - Alphabet, Google's parent company, initiated its first issuance of Swiss franc bonds and British pound bonds, with maturities ranging from 3 to 100 years [2] - TSMC reported January sales of NT$401.26 billion, a 36.8% year-over-year increase and a 19.8% month-over-month rise, leading to a 3.09% stock increase [2] - BP's Q4 earnings showed a benchmark replacement cost profit of $1.54 billion, aligning with analyst expectations, but the full-year net profit of $7.49 billion fell short of the $7.58 billion forecast, resulting in a 4.9% stock decline [2] Group 3 - AstraZeneca's 2025 total revenue reached $58.739 billion, an 8% year-over-year increase, with growth in biopharmaceuticals, oncology, and rare diseases, and plans for significant investment in China [3] - AppLovin's stock rose by 3.5% after a short-seller retracted allegations against a major shareholder, ensuring the protection of legal rights [3] Group 4 - Eli Lilly announced a $2.4 billion acquisition of Orna Therapeutics to gain CAR-T therapy technology, aiming to produce cells in vivo rather than in the lab [4] Group 5 - Optical communication stocks saw a pre-market surge, with Redo Technology up over 17%, Astera Labs rising over 5%, and Corning increasing by over 1% [5]

Core Viewpoint - The article discusses the author's investment philosophy focused on fundamental valuation and tactical allocation, emphasizing the identification of underpriced securities and the strategic adjustment of investment aggressiveness based on equity price levels [1]. Group 1: Investment Philosophy - The company employs a fundamental investing approach, aiming to identify underpriced securities relative to their potential future cash flows [1]. - Tactical allocation is utilized, with more aggressive investments made when equity prices are lower and a conservative approach taken when prices are higher [1]. Group 2: Investment Focus - The author primarily covers stocks in the aerospace and defense sector, while also showing interest in retail and technology companies [1]. - A notable investment track record includes early investments in AI, tech, and crypto themes, with significant gains reported for stocks like NVDA (8000% gain), PLTR (1870% gain), AMD (3700% gain), and TSLA (3400% gain) [1]. Group 3: Performance Metrics - The current demo portfolio, initiated in April 2025 with approximately $8,000, has achieved a Sharpe ratio of 3.49, outperforming the IVV's ratio of 2.42 during the same period [1]. - The average time-weighted return for the demo portfolio is 0.30% per day, compared to IVV's 0.14% per day [1].

Core Insights - The article highlights the author's investment philosophy focused on fundamental valuation and tactical allocation, aiming to identify underpriced securities relative to their potential future cash flows [1]. Group 1: Investment Strategy - The author employs a strategy of investing more aggressively when equity prices are lower and conservatively when they are higher [1]. - The current demo portfolio, initiated in April 2025 with approximately $8,000, has achieved a Sharpe ratio of 3.49, outperforming the IVV's Sharpe ratio of 2.42 during the same period [1]. Group 2: Performance Metrics - The average time-weighted return of the demo portfolio is 0.30 percent per day, compared to IVV's 0.14 percent per day [1]. - The author has a notable investment track record, including significant gains from early investments in companies like NVDA (8,000 percent gain), PLTR (1,870 percent gain), AMD (3,700 percent gain), and TSLA (3,400 percent gain) [1].

Group 1: Exelixis Overview - Exelixis has seen a stock increase of +30% over the last year, with Q4 sales expected to rise by 3% year over year to $584.68 million and Q4 EPS projected to increase by 40% to $0.77 compared to $0.55 in the prior year quarter [1][4] - The company received FDA acceptance for a New Drug Application for a combination therapy targeting metastatic colorectal cancer, marking its transition from a single-product biotech to a multi-asset oncology company [2][3] - Exelixis has consistently surpassed Zacks EPS Consensus for six consecutive quarters, with an average earnings surprise of 21.39% in its last four quarterly reports [4][5] Group 2: Gilead Sciences Overview - Gilead Sciences' stock has surged nearly +60% in the last year, with Q4 sales expected to be flat at $7.57 billion and quarterly EPS anticipated to dip 3% to $1.83 [1][10] - The company's HIV franchise, particularly Biktarvy, is highlighted as a primary long-term growth driver, contributing to a "wide moat" for the business [8] - Gilead's robust R&D pipeline, including oncology and virology programs, has been noted as the most extensive in the company's history, fueling investor sentiment [9] Group 3: Financial Projections - For fiscal 2025, Exelixis' annual EPS is expected to increase by 48% to $2.96, while Gilead Sciences' EPS is projected to grow by 76% to $8.14 per share [11] - Exelixis trades at an attractive 12X forward earnings multiple, compared to Gilead's 17X, which is still a slight discount to the Zacks Medical-Biomedical and Genetics Industry average [11] Group 4: Investment Ratings - Exelixis holds a Zacks Rank 1 (Strong Buy), while Gilead Sciences has a Zacks Rank 3 (Hold) ahead of their Q4 reports [12]

Core Viewpoint - Gilead Sciences has shown strong performance, with a 52% increase in stock price over the past year, and is set to report fourth-quarter earnings on February 10, which could influence investor decisions [1] Group 1: Financial Performance - Gilead's total revenue for the third quarter increased by 3% year over year to $7.8 billion, with a 4% increase excluding its coronavirus therapy Veklury [1] - Biktarvy, a key HIV drug, saw a revenue increase of 6% year over year [1] - For fiscal year 2025, Gilead expects product sales to be $28.6 billion at the midpoint, remaining flat compared to 2024 [2] Group 2: Growth Drivers - Yeztugo, a newly approved HIV medicine, could significantly contribute to Gilead's financial results if uptake exceeds expectations, with analysts predicting peak sales of $4.5 billion for the drug [3][4] - Gilead has a vast pipeline with many cancer programs and other HIV candidates, which could lead to improved sales growth in the coming years as the impact of Veklury diminishes [5] Group 3: Market Position and Valuation - Gilead has faced challenges in diversifying beyond its core therapeutic area, particularly in oncology, where sales have been declining [4] - The company's shares are currently trading at 16.6 times forward earnings, which is lower than the healthcare sector average of 18.7 [5]

Economic Data - The People's Bank of China will release January CPI and PPI on February 11 [1] - The National Bureau of Statistics will publish the monthly report on January commodity residential sales price index on February 13 [1] - Financial data including January social financing and new RMB loans will also be released next week [1] - In the US, December retail sales month-on-month will be announced on February 10, followed by January unemployment rate and non-farm employment data on February 11 [1] Earnings Reports - The US earnings season continues with several notable companies reporting next week, including BP, Barclays, Marriott, Coca-Cola, and AstraZeneca on February 10 [2] - Other companies such as NetEase, Youdao, and Total will report on February 11, while TripAdvisor and Hyatt will report on February 12 [2] - In Hong Kong, SMIC will report earnings on February 10, followed by Budweiser APAC and NetEase Cloud Music on February 11 [2] New Stock Issuance - One new stock, Tongbao Optoelectronics, will be available for subscription on February 9, with Ai De Technology listing on the Beijing Stock Exchange on February 10 [2] - Several new stocks will list in Hong Kong, including Lanke Technology on February 9 and Aixin Yuanzhi on February 10 [2] Stock Unlocking - A total of 33 restricted stocks will be unlocked next week, with a total market value exceeding 36 billion yuan, led by Hunan YN with 24.096 billion yuan [3][10] Central Bank Operations - The central bank will have 4.055 billion yuan of reverse repos maturing next week, with specific amounts maturing each day [3][10] Government Bonds - The Ministry of Finance will issue the first phase of RMB government bonds in Hong Kong on February 11, with a scale of 14 billion yuan [13]

Core Insights - Gilead Sciences (GILD) has seen a stock surge of 22% year-to-date, outperforming the broader market [1] - The company is preparing to report its fourth-quarter earnings on February 10, with growing momentum anticipated [2] Company Overview - Gilead Sciences is valued at $181.4 billion and focuses on developing medicines for serious diseases, particularly in HIV treatment and prevention [5] - The company also has significant growth potential in oncology, antiviral medicines, and next-generation cell therapy [5] Financial Performance - In Q3, Gilead's total revenue increased by 3% year-over-year (YOY) to $7.8 billion, despite a 2% decline in product sales to $7.3 billion due to reduced Covid-19-related demand for Veklury [6] - Excluding Veklury, product sales rose by 4% to $7.1 billion, indicating resilience in the core business [6] - HIV product sales increased by 4% YOY to $5.3 billion, driven by strong demand, with Biktarvy sales climbing 6% to $3.7 billion and Descovy sales surging 20% to $701 million [6] Growth Projections - Management expects the HIV franchise to grow approximately 5% YOY, an increase from prior guidance of 3%, despite challenges from U.S. Part D redesign changes [7] - The PrEP market is expanding at a rate of 14% to 15% per year, which is expected to be sustainable through 2026 [7] - Gilead's liver disease portfolio also performed well, with sales up 12% YOY to $819 million, primarily due to increased demand for Livdelzi [7]

Core Viewpoint - Gilead Sciences, Inc. (GILD) is set to report its fourth-quarter and full-year 2025 results on February 10, with consensus estimates for sales at $7.57 billion and earnings per share (EPS) at $1.83 [1][5] Financial Estimates - The earnings estimate for 2025 has decreased to $8.13 from $8.18 per share over the past 60 days, while the estimate for 2026 has increased to $8.60 from $8.56 [1] - The current earnings estimates for Q1 and Q2 are $1.83 and $1.90, respectively, with a trend showing a decrease of 3.17% for Q1 and an increase of 2.70% for Q2 over the past 60 days [2] Earnings Performance - GILD has a strong earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 7.80%, including a 14.88% beat in the last reported quarter [2][3] Product Performance - Gilead's HIV franchise, particularly Biktarvy and Descovy, remains the primary growth driver, with Biktarvy accounting for over 52% of the U.S. treatment market [5][8] - The estimated sales for Biktarvy and Descovy are $3.8 billion and $703 million, respectively, with Yeztugo contributing $39 million in the third quarter [9][10] - The liver disease portfolio has seen increased sales, particularly for Livdelzi, while cell therapy sales are expected to decline due to competitive pressures [12][13] Market Position and Valuation - GILD's shares have increased by 49.2% over the past year, outperforming the industry growth of 31% [15] - The current price/earnings ratio for GILD is 16.85x forward earnings, higher than its historical mean of 11.17x but lower than the large-cap pharma industry average of 18.13x [18] Strategic Initiatives - Gilead is focusing on innovation within its HIV portfolio and has received positive data from phase III studies for new treatments [19][20] - The company is also pursuing strategic collaborations, including partnerships with Merck to enhance its product offerings [25]

Core Insights - Gilead Sciences, Inc. (GILD) shares have increased by 20.8% over the past month, significantly outperforming the industry growth of 4.5% [2] - The stock rally was primarily driven by the publication of positive results from the ASCENT-04 study in The New England Journal of Medicine [2][8] Study Results - The phase III ASCENT-04 study evaluated the combination of Gilead's Trodelvy and Merck's Keytruda in patients with untreated, inoperable locally advanced or metastatic triple-negative breast cancer (TNBC) expressing PD-L1, enrolling 443 patients [3] - The study achieved its primary endpoint, showing a 35% reduction in the risk of disease progression or death for the Trodelvy plus Keytruda combination compared to Keytruda plus chemotherapy, with median progression-free survival (PFS) of 11.2 months versus 7.8 months [4] Safety and Collaboration - The safety profile of the Trodelvy and Keytruda combination was consistent with the known safety profiles of each drug [5] - Gilead has collaborated with Merck since 2021 to evaluate Trodelvy in combination with Keytruda in the ASCENT-04 study [5] Market Potential - Trodelvy is currently approved in over 50 countries for second-line or later metastatic TNBC and in over 40 countries for certain pre-treated HR+/HER2- metastatic breast cancer patients [6] - Gilead has submitted two supplemental biologics license applications for Trodelvy's use in first-line metastatic TNBC, with potential regulatory decisions expected in 2026, which could significantly boost sales [9] Unmet Need and Future Growth - There is a significant unmet need in first-line metastatic TNBC, where existing therapies often lead to rapid disease progression and poor outcomes, presenting a substantial opportunity for differentiated treatments [10] - The efficacy data for the Trodelvy-Keytruda combination strengthens the case for a new standard of care, potentially expanding Trodelvy's market and driving long-term revenue growth [10] Ongoing Development - Trodelvy is being evaluated in multiple ongoing phase III trials across various tumor types with high Trop-2 expression, indicating its potential as a broadly applicable oncology asset [12] - The development program includes both monotherapy and combination regimens with Keytruda, targeting earlier treatment lines in TNBC and HR+/HER2-negative breast cancer, as well as lung and gynecologic cancers [12] Strategic Diversification - A potential label expansion for Trodelvy would enhance Gilead's oncology portfolio and reduce its reliance on HIV therapies, diversifying the company's revenue base [13] - Merck's Keytruda, which accounts for around 50% of its pharmaceutical sales, is also undergoing strategies to drive long-term growth [13]