PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents Gilead Sciences, Inc.'s unaudited interim financial statements as of June 30, 2025, detailing financial position, operations, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$55.7 billion** by June 30, 2025, driven by reduced cash, while liabilities and debt also declined Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $5,144 | $9,991 | | Total current assets | $14,718 | $19,173 | | Intangible assets, net | $18,566 | $19,948 | | Goodwill | $8,314 | $8,314 | | **Total assets** | **$55,721** | **$58,995** | | **Liabilities & Equity** | | | | Total current liabilities | $11,189 | $12,004 | | Long-term debt, net | $22,140 | $24,896 | | **Total liabilities** | **$36,131** | **$39,749** | | **Total stockholders' equity** | **$19,590** | **$19,246** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Gilead reported **$7.08 billion** in Q2 2025 revenues and a significant turnaround to **$3.28 billion** net income for the first six months of 2025 Q2 2025 vs Q2 2024 Statement of Operations (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenues | $7,082 | $6,954 | | Operating income | $2,474 | $2,644 | | Net income attributable to Gilead | $1,960 | $1,614 | | Diluted EPS | $1.56 | $1.29 | Six Months 2025 vs 2024 Statement of Operations (in millions, except EPS) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Total revenues | $13,749 | $13,640 | | Operating income (loss) | $4,711 | $(1,678) | | Net income (loss) attributable to Gilead | $3,275 | $(2,556) | | Diluted EPS (loss) | $2.61 | $(2.05) | - A significant driver of the improved six-month performance was the reduction in Acquired IPR&D expenses to **$315 million** in 2025 from **$4.17 billion** in 2024, and lower IPR&D impairments of **$190 million** compared to **$2.43 billion** in the prior year[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$2.6 billion** for the first six months of 2025, with significant cash used in financing activities Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,584 | $3,544 | | Net cash used in investing activities | $(2,531) | $(2,514) | | Net cash used in financing activities | $(4,993) | $(4,314) | | **Net change in cash and cash equivalents** | **$(4,848)** | **$(3,313)** | - Significant financing activities in the first six months of 2025 included **$1.3 billion** in stock repurchases, **$1.8 billion** in debt repayments, and **$2.0 billion** in dividend payments[26](index=26&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, revenue breakdown, acquisitions, impairment charges, legal proceedings, and tax rates [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and first-half 2025 financial results, highlighting revenue drivers, expense changes, and capital allocation priorities - Total revenues increased **2%** to **$7.1 billion** in Q2 2025, driven by higher HIV, Livdelzi, and Trodelvy sales, partially offset by lower HCV and Veklury sales[108](index=108&type=chunk) - Net income for the first six months of 2025 was **$3.3 billion**, a significant improvement from a **$2.6 billion** net loss in the same period of 2024, primarily due to the absence of large IPR&D expenses and impairment charges from 2024[109](index=109&type=chunk)[110](index=110&type=chunk) - Key business updates include FDA approval for Yeztugo (lenacapavir) for HIV PrEP, conditional EU marketing authorization for seladelpar for PBC, and positive topline results from the Phase 3 ASCENT-03 trial for Trodelvy[105](index=105&type=chunk)[106](index=106&type=chunk) [Results of Operations - Revenues](index=33&type=section&id=Results%20of%20Operations%20-%20Revenues) Total product sales for Q2 2025 were **$7.05 billion**, up **2%** year-over-year, driven by strong HIV franchise growth, offsetting declines in Veklury and Liver Disease sales Product Sales by Therapeutic Area (Q2 2025 vs Q2 2024, in millions) | Therapeutic Area | Q2 2025 Sales | Q2 2024 Sales | YoY Change | | :--- | :--- | :--- | :--- | | **Total HIV** | **$5,088** | **$4,745** | **+7%** | | Biktarvy | $3,530 | $3,232 | +9% | | Descovy | $653 | $485 | +35% | | **Total Liver Disease** | **$795** | **$832** | **-4%** | | **Veklury** | **$121** | **$214** | **-44%** | | **Total Oncology** | **$849** | **$841** | **+1%** | | Cell Therapy | $485 | $521 | -7% | | Trodelvy | $364 | $320 | +14% | - HIV product sales growth was driven by higher demand and higher average realized price, which includes the impact of the U.S. Medicare Part D program redesign[113](index=113&type=chunk) - Veklury sales continued to decline significantly, down **44%** in Q2 and **45%** in the first half of 2025, due to lower rates of COVID-19-related hospitalizations[117](index=117&type=chunk) [Results of Operations - Costs and Expenses](index=36&type=section&id=Results%20of%20Operations%20-%20Costs%20and%20Expenses) R&D expenses increased **10%** in Q2 2025, with a **$190 million** IPR&D impairment for bulevirtide, while Acquired IPR&D and impairments significantly decreased year-over-year for the first six months Costs and Expenses (Q2 2025 vs Q2 2024, in millions) | Expense Category | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Cost of goods sold | $1,501 | $1,544 | -3% | | Research and development (R&D) | $1,491 | $1,351 | +10% | | Acquired IPR&D | $61 | $38 | +61% | | IPR&D impairments | $190 | $0 | NM | | Selling, general & administrative (SG&A) | $1,365 | $1,377 | -1% | - A partial impairment charge of **$190 million** was recorded in Q2 2025 for the bulevirtide IPR&D asset, reflecting a more competitive market outlook[136](index=136&type=chunk) - For the first six months of 2024, the company recorded a **$2.4 billion** partial impairment charge for the Trodelvy NSCLC IPR&D asset after the Phase 3 EVOKE-01 study did not meet its primary endpoint[138](index=138&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Gilead held **$5.1 billion** in cash as of June 30, 2025, with **$2.6 billion** in operating cash flow and **$5.0 billion** used in financing activities for dividends, debt, and repurchases Cash Flow Summary (Six Months Ended June 30, in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,584 | $3,544 | | Net cash used in investing activities | $(2,531) | $(2,514) | | Net cash used in financing activities | $(4,993) | $(4,314) | - The company's capital priorities are: (i) investing in the business and R&D, (ii) partnerships and business development, (iii) growing the dividend, and (iv) repurchasing shares[152](index=152&type=chunk) - In August 2025, the Board of Directors declared a quarterly dividend of **$0.79 per share**[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures were reported since the 2024 Annual Report, except for updates in specific financial notes - There were no material changes to the company's market risk disclosures from the 2024 Annual Report, except for updates provided in Notes 3, 4, 5, and 9 of this 10-Q[163](index=163&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of June 30, 2025, while noting ongoing changes due to a new ERP system implementation - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[164](index=164&type=chunk) - The company is implementing a new enterprise resource planning (ERP) system in phases, which has required changes to its internal control over financial reporting[165](index=165&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 10 for detailed descriptions of significant pending legal proceedings, including generic challenges, antitrust lawsuits, and government investigations - For a detailed description of significant legal proceedings, the report refers to Note 10 in Part I, Item 1[167](index=167&type=chunk) - As of December 31, 2024, the company had accrued approximately **$242 million** for legal matters, including **$200 million** for a settlement with the U.S. Attorney's Office that was paid in Q2 2025[79](index=79&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) This section details material risks that could adversely affect Gilead's business, including product, development, regulatory, operational, and financial risks [Product and Commercialization Risks](index=43&type=section&id=Product%20and%20Commercialization%20Risks) Gilead faces risks from heavy reliance on HIV product revenues, complexities of cell therapy commercialization, intense competition, and significant pricing pressures - A substantial portion of revenue comes from HIV products, and the inability to sustain sales or introduce new competitive products could force a scale-back of operations[169](index=169&type=chunk) - The Inflation Reduction Act (IRA) is anticipated to increase payment obligations, limit prices, and increase rebates, thereby reducing profitability[184](index=184&type=chunk)[185](index=185&type=chunk) - The company faces significant competition, and successful commercialization depends on reimbursement from third-party payers who are increasingly attempting to limit or regulate drug prices[181](index=181&type=chunk)[182](index=182&type=chunk) - The company has identified and seized counterfeit versions of its medicines sold by unauthorized distributors, posing a risk to patient health and the company's reputation[196](index=196&type=chunk)[197](index=197&type=chunk) [Product Development and Supply Chain Risks](index=47&type=section&id=Product%20Development%20and%20Supply%20Chain%20Risks) The company faces significant risks in clinical trials, including unfavorable results and delays, and relies heavily on third-party CROs and limited suppliers for manufacturing - There are numerous risks in clinical trials, including unfavorable results; in June 2025, the FDA placed a clinical hold on HIV treatment trials of GS-1720 and GS-4182[200](index=200&type=chunk) - Gilead depends on third-party contract manufacturing organizations (CMOs) for the majority of its active pharmaceutical ingredients and drug products, and some materials are sourced from a single supplier[204](index=204&type=chunk) [Regulatory and Other Legal Risks](index=49&type=section&id=Regulatory%20and%20Other%20Legal%20Risks) Gilead's operations are subject to complex and evolving regulations, with risks from non-compliance, healthcare laws, intellectual property challenges, and ongoing litigation - The company is subject to complex FDA and international regulations, and failure to comply can result in significant penalties, product recalls, or suspension of approvals[207](index=207&type=chunk)[211](index=211&type=chunk) - Generic manufacturers are actively seeking to market generic versions of Gilead's products, leading to patent litigation that could result in an earlier-than-expected loss of exclusivity[220](index=220&type=chunk) - The company is involved in numerous litigation and government investigation matters, which require substantial resources and could result in significant monetary damages or penalties[223](index=223&type=chunk)[225](index=225&type=chunk) [Operational Risks](index=52&type=section&id=Operational%20Risks) Gilead's global operations are exposed to risks from public health emergencies, foreign currency fluctuations, climate change, ERP system implementation, and cybersecurity threats - Global operations are subject to risks including foreign currency exchange fluctuations, political instability, and changes in trade policies[227](index=227&type=chunk) - Climate change poses physical risks to facilities located in vulnerable regions (e.g., California) and transition risks from evolving environmental regulations[228](index=228&type=chunk)[229](index=229&type=chunk) - The company is currently implementing a new ERP system, which entails risks of business disruption, cost overruns, and potential negative impacts on internal controls[241](index=241&type=chunk) - Cybersecurity attacks are increasing in frequency and sophistication, posing a threat to sensitive data, intellectual property, and business operations[242](index=242&type=chunk)[243](index=243&type=chunk) [Strategic and Financial Risks](index=56&type=section&id=Strategic%20and%20Financial%20Risks) Gilead faces risks from unsuccessful acquisitions and collaborations, potential impairment charges, increased debt from financing transactions, and changes in effective tax rates - Acquisitions and collaborations may not be successful and can lead to significant impairment charges, such as those recorded for IPR&D assets in Q2 2025 and Q1 2024[246](index=246&type=chunk) - The company has incurred additional debt to finance strategic transactions, which could result in credit rating downgrades and reduced financial flexibility[247](index=247&type=chunk) - The company's effective tax rate is subject to change based on the mix of earnings across jurisdictions and evolving tax laws, which could adversely affect earnings[248](index=248&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, Gilead repurchased approximately **5.0 million** shares for **$528 million**, and a new **$6.0 billion** stock repurchase program was authorized in July 2025 Stock Repurchase Activity (Q2 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Shares Purchased as Part of Program (thousands) | | :--- | :--- | :--- | :--- | | April 2025 | 1,711 | $105.88 | 1,662 | | May 2025 | 1,936 | $103.00 | 1,888 | | June 2025 | 1,887 | $109.49 | 1,425 | | **Total** | **5,534** | **$106.10** | **4,975** | - In July 2025, the Board authorized a new **$6.0 billion** stock repurchase program with no fixed expiration, to begin after the current **$5.0 billion** program is completed[250](index=250&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[253](index=253&type=chunk) [Item 6. Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including various agreements, indentures, compensatory plans, and certifications - The Exhibit Index lists all documents filed with the report, such as merger agreements, indentures for senior notes, equity incentive plans, and officer certifications[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk)

Financial Performance - Gilead lifted its full-year outlook after strong HIV drug sales in the second quarter [1] - Revenue and earnings modestly beat analyst expectations [1]

Financial Performance - Total product sales excluding Veklury increased by 4% year-over-year (YoY) to $6.9 billion, driven by HIV, Livdelzi, and Trodelvy[8] - Total HIV product sales increased by 7% YoY to $5.1 billion[12] - Oncology product sales increased by 1% YoY to $849 million[12] - Veklury sales decreased by 44% YoY to $121 million[12] - Liver disease product sales decreased by 4% YoY to $795 million[12] - Cell Therapy product sales decreased by 7% YoY to $485 million[12] HIV Business - Biktarvy sales increased by 9% YoY[8] - Descovy sales increased by 35% YoY[8] - FY25 HIV revenue guidance updated to reflect year-to-date (YTD) strength, expecting >7% YoY growth[22] Oncology - Trodelvy sales increased by 14% YoY[8] - Cell Therapy saw a 7% YoY decrease due to evolving competitive landscape[8] Pipeline and Regulatory Updates - FDA approved Yeztugo (lenacapavir) as a twice-yearly injection for HIV prevention[8] - Phase 3 ASCENT-03 & -04 data for Trodelvy in 1L mTNBC showed clinically meaningful results, with FDA filings expected in ~2H 2025[8]

[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Overall Performance](index=1&type=section&id=Overall%20Performance) Gilead's Q2 2025 total revenue increased 2% to $7.1 billion, with GAAP EPS rising to $1.56 and non-GAAP EPS flat at $2.01 Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenue | $7.1 billion | $7.0 billion | +2% | | Product Sales | $7.1 billion | $6.9 billion | +2% | | Product Sales (ex-Veklury) | $6.9 billion | $6.7 billion | +4% | | GAAP Diluted EPS | $1.56 | $1.29 | +21% | | Non-GAAP Diluted EPS | $2.01 | $2.01 | 0% | | Operating Cash Flow | $827 million | $1,325 million | -38% | - The increase in GAAP EPS was primarily driven by net unrealized gains on securities in Q2 2025 compared to net unrealized losses in Q2 2024, partially offset by a **$190 million** IPR&D impairment charge related to the MYR acquisition[6](index=6&type=chunk) - During the quarter, Gilead paid **$994 million** in dividends and repurchased **$527 million** of common stock[6](index=6&type=chunk) [Product Sales Performance](index=1&type=section&id=Product%20Sales%20Performance) Total product sales increased 2% to $7.1 billion, driven by HIV and Trodelvy, offset by declines in Veklury and Cell Therapy [HIV Franchise](index=1&type=section&id=HIV%20Franchise) HIV franchise sales grew **7%** to **$5.1 billion**, led by **Biktarvy** and **Descovy** Q2 2025 HIV Product Sales (YoY) | Product | Q2 2025 Sales | Change (YoY) | | :--- | :--- | :--- | | **Total HIV** | **$5.1 billion** | **+7%** | | Biktarvy | $3.5 billion | +9% | | Descovy | $653 million | +35% | [Liver Disease Franchise](index=2&type=section&id=Liver%20Disease%20Franchise) Liver Disease sales decreased **4%** to **$795 million** due to lower HCV sales, partially offset by other products - Liver Disease sales decreased **4%** to **$795 million**, mainly driven by lower HCV sales[8](index=8&type=chunk) - The decline in HCV was partly offset by sales growth from Livdelzi, Hepcludex, and HBV products[8](index=8&type=chunk) [Oncology Franchise](index=2&type=section&id=Oncology%20Franchise) Oncology sales showed mixed results, with **Trodelvy** up **14%** but Cell Therapy down **7%** due to competition Q2 2025 Oncology Product Sales (YoY) | Product/Category | Q2 2025 Sales | Change (YoY) | | :--- | :--- | :--- | | **Trodelvy** | **$364 million** | **+14%** | | **Cell Therapy** | **$485 million** | **-7%** | | Yescarta | $393 million | -5% | | Tecartus | $92 million | -14% | [Veklury (COVID-19)](index=2&type=section&id=Veklury%20(COVID-19)) Veklury sales significantly declined **44%** to **$121 million** due to lower COVID-19 hospitalization rates - Veklury sales decreased **44%** to **$121 million**, driven by lower COVID-19 hospitalization rates[8](index=8&type=chunk) [Operating Expenses and Profitability](index=2&type=section&id=Operating%20Expenses%20and%20Profitability) Gross margins improved, R&D expenses increased due to clinical activity, while SG&A remained flat, impacting profitability Q2 2025 Operating Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Product Gross Margin (GAAP) | 78.7% | 77.7% | | Product Gross Margin (Non-GAAP) | 86.9% | 86.0% | | R&D Expenses (GAAP) | $1.5 billion | $1.4 billion | | SG&A Expenses (GAAP) | $1.4 billion | $1.4 billion | | Effective Tax Rate (GAAP) | 19.3% | 21.4% | | Effective Tax Rate (Non-GAAP) | 18.8% | 17.8% | - The increase in R&D expenses was primarily due to increased clinical manufacturing and study expenses, as well as valuation adjustments to the MYR-related contingent consideration[13](index=13&type=chunk) [Guidance and Outlook](index=2&type=section&id=Guidance%20and%20Outlook) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) Gilead raised its full-year 2025 guidance for product sales (ex-Veklury) and EPS, while lowering Veklury sales forecast Updated Full-Year 2025 Guidance | Metric | New Guidance (Aug 7, 2025) | Prior Guidance | | :--- | :--- | :--- | | Product Sales | $28.3B - $28.7B | $28.2B - $28.6B | | Product Sales (ex-Veklury) | $27.3B - $27.7B | $26.8B - $27.2B | | Veklury Sales | ~$1.0B | ~$1.4B | | Diluted EPS (GAAP) | $5.85 - $6.15 | $5.65 - $6.05 | | Non-GAAP Diluted EPS | $7.95 - $8.25 | $7.70 - $8.10 | [Key Business and Pipeline Updates](index=3&type=section&id=Key%20Business%20and%20Pipeline%20Updates) [Virology](index=3&type=section&id=Virology) Virology highlights include FDA approval for **Yeztugo** HIV PrEP, a Global Fund partnership, and a clinical hold on HIV trials - Received U.S. FDA approval for **Yeztugo® (lenacapavir)** for pre-exposure prophylaxis (PrEP), making it the first twice-yearly HIV prevention option[17](index=17&type=chunk) - Announced a strategic partnership with the Global Fund to accelerate access to lenacapavir for HIV PrEP in low- and lower-middle-income countries[17](index=17&type=chunk) - The FDA placed a clinical hold on the HIV treatment trials of investigational candidates GS-1720 and/or GS-4182[17](index=17&type=chunk) [Oncology](index=3&type=section&id=Oncology) Oncology updates include positive **Trodelvy** Phase 3 results, **Yescarta** real-world data, and a new licensing deal with Kymera Therapeutics - Announced positive topline results from the Phase 3 ASCENT-03 trial evaluating **Trodelvy** in 1L metastatic triple-negative breast cancer (mTNBC)[17](index=17&type=chunk) - Presented new real-world data supporting the use of **Yescarta** in outpatient care settings for patients with relapsed or refractory large B-cell lymphoma[17](index=17&type=chunk) - Entered into an exclusive option and license agreement with Kymera Therapeutics to develop novel oral molecular glue CDK2 degraders for oncology[17](index=17&type=chunk) [Inflammation](index=4&type=section&id=Inflammation) New data on **Livdelzi** for primary biliary cholangitis was presented at EASL, including an interim long-term study analysis - Presented new data at EASL from multiple analyses evaluating **Livdelzi** for the treatment of primary biliary cholangitis[18](index=18&type=chunk) [Corporate Developments](index=4&type=section&id=Corporate%20Developments) Corporate developments include a **$0.79** dividend, a **$6.0 billion** stock repurchase program, and a DOJ settlement - The Board declared a Q3 2025 dividend of **$0.79 per share**[25](index=25&type=chunk) - A new **$6.0 billion** stock repurchase program was authorized by the Board[25](index=25&type=chunk) - Reached a final settlement agreement with the U.S. Department of Justice for a legacy compliance matter, which was previously accrued in 2024[25](index=25&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Unaudited income statements for Q2 and H1 2025 and 2024, detailing revenues, costs, operating income, and net income [Condensed Consolidated Balance Sheets](index=14&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Unaudited balance sheets as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Balance Sheet Summary | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and marketable debt securities | $7,126 million | $9,991 million | | Total Assets | $55,721 million | $58,995 million | | Total Liabilities | $36,131 million | $39,748 million | | Stockholders' Equity | $19,590 million | $19,246 million | [Selected Cash Flow Information](index=15&type=section&id=Selected%20Cash%20Flow%20Information) Cash flow details for Q2 and H1 2025 and 2024, covering operating, investing, and financing activities, including non-GAAP free cash flow Cash Flow Summary (Three Months Ended June 30) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $827 million | $1,325 million | | Net cash used in investing activities | ($2,116) million | ($307) million | | Net cash used in financing activities | ($1,566) million | ($2,953) million | [Detailed Product Sales Summary](index=8&type=section&id=Detailed%20Product%20Sales%20Summary) Detailed product sales breakdown by therapeutic area, major product, and geographic region for Q2 and H1 2025 and 2024 [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Detailed reconciliation tables for GAAP to non-GAAP financial results for reported periods and full-year 2025 guidance

Earnings Report - Gilead Sciences, Inc. is set to release its second-quarter earnings results on August 7, with analysts expecting earnings of $1.96 per share, a decrease from $2.01 per share in the same period last year [1] - The projected quarterly revenue is $6.96 billion, slightly up from $6.95 billion a year earlier [1] Analyst Upgrade - Needham analyst Joseph Stringer upgraded Gilead Sciences from Hold to Buy, setting a price target of $133 [2] - The company currently offers an annual dividend yield of 2.87%, translating to a quarterly dividend of 79 cents per share, or $3.16 annually [2] Dividend Strategy - To achieve a monthly income of $500 from dividends, an investment of approximately $209,422 or around 1,899 shares is required [2] - For a more modest monthly income of $100, an investment of $41,906 or around 380 shares is necessary [2] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on stock price changes [3] - Changes in dividend payments also affect the yield; an increase in dividends raises the yield if the stock price remains constant, while a decrease lowers it [4] Stock Performance - Gilead Sciences shares fell by 1.9%, closing at $110.28 on Wednesday [4]

Industry Overview - The second-quarter earnings season for the drug and biotech sector is in full swing, with major companies like Pfizer, Eli Lilly, Amgen, Gilead Sciences, and Novo Nordisk set to announce results [1] - The earnings season began mid-July with Johnson & Johnson reporting strong results, exceeding estimates for both earnings and sales [1] Company Performance Pfizer (PFE) - Pfizer has consistently exceeded earnings expectations in the last four quarters, with an average earnings surprise of 43.49% [6] - The Zacks Consensus Estimate for second-quarter sales and earnings is $13.78 billion and 58 cents per share, respectively [6] - Higher sales from products like Vyndaqel and Padcev are expected to offset weaker sales from Prevnar and Ibrance [8] Eli Lilly (LLY) - Eli Lilly's performance has been mixed, exceeding earnings expectations in two of the last four quarters, with an average earnings surprise of 6.69% [11] - The Zacks Consensus Estimate for second-quarter sales and earnings stands at $14.75 billion and $5.61 per share, respectively [11] - Strong demand for Mounjaro and Zepbound is anticipated to drive top-line growth [12] Amgen (AMGN) - Amgen has shown strong performance, beating earnings estimates in each of the last four quarters, with an average earnings surprise of 8.34% [14] - The Zacks Consensus Estimate for second-quarter sales and earnings is $8.86 billion and $5.26 per share, respectively [14] - Sales growth is expected to be driven by products like Evenity and Repatha, despite price declines due to higher rebates [15] Gilead Sciences (GILD) - Gilead's performance has been mixed, with earnings beating estimates in three of the last four quarters, averaging a surprise of 16.48% [17] - The Zacks Consensus Estimate for second-quarter sales and earnings is $6.95 billion and $1.95 per share, respectively [17] - Increased demand for HIV therapies like Biktarvy is expected to boost sales [18] Novo Nordisk (NVO) - Novo Nordisk's performance has been mixed, with earnings beating estimates in one of the last four quarters, delivering an average surprise of 0.02% [20] - The Zacks Consensus Estimate for second-quarter sales and earnings is $11.79 billion and 93 cents per share, respectively [20] - The company lowered its 2025 sales and operating profit growth outlook due to weaker momentum in key markets for its semaglutide-based drugs [21]

Core Viewpoint - Analysts expect Gilead Sciences (GILD) to report quarterly earnings of $1.95 per share, reflecting a year-over-year decline of 3%, with revenues projected at $6.95 billion, down 0.1% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 1.1% higher in the last 30 days, indicating a collective reevaluation by analysts [1][2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [2]. Revenue Projections - Analysts project 'Revenues- Royalty contract and other revenues' to reach $38.09 million, indicating a decline of 7.1% year-over-year [3]. - The average prediction for 'Total product sales- Total' is $6.91 billion, showing no change from the prior year [4]. Product Sales Estimates - 'Product Sales- Oncology- Cell Therapy- Tecartus- Total' is estimated at $92.76 million, reflecting a decrease of 13.3% from the previous year [4]. - 'Product Sales- Veklury- Total' is expected to be $211.34 million, down 1.2% year-over-year, while 'Product Sales- HIV- Odefsey- U.S.' is projected at $215.50 million, down 7.5% [5]. - 'Product Sales- Other- Other- U.S.' is anticipated to be $54.28 million, indicating a significant decline of 44.6% [5]. - 'Product Sales- HIV- Descovy- U.S.' is expected to reach $509.35 million, reflecting a growth of 17.4% year-over-year [6]. - 'Product Sales- Oncology- Trodelvy- U.S.' is projected at $224.58 million, showing a slight increase of 0.3% [6]. - 'Product Sales- Oncology- Cell Therapy- Tecartus- U.S.' is estimated at $49.56 million, down 21.3% year-over-year [7]. - 'Product Sales- Liver Disease- Sofosbuvir / Velpatasvir- U.S.' is expected to be $225.96 million, down 15.4% [7]. - 'Product Sales- HIV- Genvoya- U.S.' is projected at $333.57 million, reflecting a decline of 10.3% [8]. - 'Product Sales- Veklury- U.S.' is expected to reach $69.13 million, down 9% year-over-year [8]. Market Performance - Gilead shares have increased by 1.3% over the past month, compared to a 0.6% increase in the Zacks S&P 500 composite [8].

Core Viewpoint - Gilead Sciences, Inc. is set to report its Q2 2025 results on August 7, with consensus estimates for sales at $6.95 billion and earnings per share (EPS) at $1.95, reflecting a positive trend in earnings estimates for 2025 and 2026 [1][4][6]. Financial Performance - The earnings estimate for 2025 has risen to $8.02 from $7.91 per share over the past 60 days, while the estimate for 2026 has increased to $8.53 from $8.39 [1]. - Gilead's earnings surprise history shows that the company has beaten estimates in three of the last four quarters, with an average surprise of 16.48% [2][3]. Sales Drivers - Strong sales from Gilead's HIV drugs, particularly Biktarvy and Descovy, are expected to support top-line growth in Q2, with estimates for Biktarvy at $3.4 billion and Descovy at $577 million [4][8]. - The company has recently received FDA approval for lenacapavir, a twice-yearly injectable HIV-1 capsid inhibitor, which is anticipated to enhance its HIV portfolio [8][16]. Market Dynamics - The introduction of a new Medicare Part D model may have impacted HIV sales due to increased cost-sharing obligations for low-income patients, which could affect overall sales [7][6]. - Gilead's liver disease portfolio is expected to benefit from higher demand for viral hepatitis medicines, with incremental sales from the newly approved drug Livdelzi [9][10]. Competitive Landscape - Gilead's cell therapy sales, particularly for Yescarta and Tecartus, are likely to have declined due to competitive pressures in both the U.S. and global markets [11][17]. - The oncology portfolio, including Trodelvy, is showing strong demand, although the cell therapy segment faces ongoing challenges [13][17]. Stock Performance and Valuation - Gilead's shares have increased by 22.5% year-to-date, outperforming the industry and the S&P 500 [14]. - The stock currently trades at a price/earnings ratio of 13.60x forward earnings, which is higher than its historical mean but lower than the large-cap pharma industry average [15]. Strategic Outlook - Gilead's strategic deals and acquisitions are seen as positive for diversifying its business, with ongoing collaborations to enhance its HIV treatment offerings [18][22]. - The company is viewed as a safe haven for investors in the biotech sector, with a strong dividend yield adding to its attractiveness [19][23].

Core Viewpoint - The article discusses President Trump's public letter to 17 major pharmaceutical companies, demanding that they align U.S. prescription drug prices with international markets, particularly those of other developed countries [3][4]. Group 1: Government Actions - Trump signed an executive order in May requiring drug companies to align their prices with international minimums or face government intervention, including the possibility of importing cheaper drugs [4]. - The letter specifies that all drug companies must provide "most favored nation pricing" to Medicaid patients, meaning the lowest price available in OECD countries [6]. - Companies are also required to return excess profits gained from higher prices abroad to U.S. patients and taxpayers [6]. Group 2: Industry Response - Following the announcement, stock prices of several pharmaceutical companies, including Pfizer and Eli Lilly, fell by approximately 2%, with the NYSE Arca Pharmaceutical Index dropping by 3% [6]. - Some companies, like Pfizer and Novartis, expressed willingness to cooperate with the government to improve drug affordability [7]. - Industry experts have raised doubts about the feasibility of implementing these price reductions, suggesting that while some companies may attempt direct sales to patients, comprehensive execution remains challenging [6][7]. Group 3: Market Context - U.S. patients currently pay significantly higher prescription drug costs compared to other developed nations, with some drug prices being three times higher than in other countries [7]. - Pharmaceutical companies argue that high U.S. prices are necessary to fund extensive research and development for new drugs, warning that enforced price reductions could hinder innovation [7].

Group 1 - President Trump has sent letters to 17 major pharmaceutical companies, demanding specific actions to lower drug prices in the U.S. within 60 days, or he will use "all available means" to protect American families from "price gouging" [1][2] - The companies that received the letters include Pfizer, Novo Nordisk, Johnson & Johnson, and others, with a focus on commitments such as providing "most favored nation" pricing for Medicaid patients and direct sales to consumers [1][2] - Trump highlighted that U.S. drug prices are significantly higher than those in other developed countries, with average prescription drug prices being 2 to 3 times higher, and some drugs up to 10 times more expensive [2] Group 2 - Following the announcement, stock prices of several pharmaceutical companies dropped, with Sanofi falling over 8%, and others like Bristol-Myers Squibb and Novo Nordisk declining nearly 5% [2] - The Pharmaceutical Research and Manufacturers of America criticized the introduction of "foreign price controls," arguing it would undermine U.S. innovation and harm patients and workers [3] - Companies like Pfizer and Novartis stated they are working on solutions to make medications more affordable for American patients, with AstraZeneca considering price reductions and direct sales models [3]