Gilead(US:GILD) ZACKSยท2025-08-18 14:25Core Insights - Gilead Sciences, Inc. (GILD) shares increased by 7.3% following strong Q2 2025 results and an upward revision of its annual guidance for 2025 [1][2] - Adjusted EPS was $2.01, surpassing the Zacks Consensus Estimate of $1.95, while total revenues reached $7.1 billion, exceeding the estimate of $6.9 billion, marking a 2% year-over-year growth [1][2] Financial Performance - Gilead raised its full-year product sales and EPS guidance, driven by robust demand for HIV treatments, particularly Biktarvy and Descovy [2] - Year-to-date, GILD's stock has risen 28.2%, outperforming the industry average gain of 3.7% [2] HIV Franchise Strength - The HIV treatment portfolio showed a strong performance with a 7% year-over-year growth, largely due to Biktarvy's sales growth of 9% to $3.5 billion [6][8] - Descovy's sales for pre-exposure prophylaxis (PrEP) surged 35% year-over-year to $653 million, marking its strongest quarter [7] - Gilead anticipates approximately 3% growth in HIV sales for 2025, up from previous flat growth expectations [7] New Product Launches - The FDA approved lenacapavir, branded as Yeztugo, enhancing Gilead's HIV portfolio amid competition from generics [9] - Yeztugo, a long-acting injectable PrEP, is expected to address barriers to broader PrEP adoption [10] - Gilead aims for up to eight additional HIV product launches by the end of 2033, with five expected by the end of 2030 [11] Oncology Portfolio - Trodelvy, a breast cancer drug, saw a 14% year-over-year sales increase to $364 million, outperforming estimates [12] - Gilead is pursuing approval for Trodelvy in first-line treatment settings based on trial results [13] Challenges in Other Franchises - The Cell Therapy franchise faced a 7% sales decline to $485 million due to competitive pressures [14] - Liver Disease portfolio sales decreased by 4% to $795 million, primarily due to lower chronic hepatitis C virus sales impacted by Medicare Part D redesign [15][16] Valuation and Estimates - GILD shares trade at a forward P/E ratio of 14.18, slightly below the large-cap pharma industry average of 14.45 [17] - Earnings estimates for 2025 have increased to $8.09 from $7.92 over the past month [18] Strategic Outlook - Gilead's innovation in the HIV portfolio and the approval of Yeztugo are seen as significant growth drivers [21] - Collaborations, such as with Merck for HIV treatment, and strategic acquisitions are viewed positively [22] - The company maintains a strong cash position, with $7.1 billion in cash and equivalents, supporting a sustainable dividend yield of 2.67% [25]