Gilead Sciences Q4 Earnings Call Highlights

Core Insights - Gilead Sciences reported a strong performance in its HIV segment, with full-year sales reaching $20.8 billion, a 6% increase year-over-year, and fourth-quarter sales hitting a record $5.8 billion, also up 6% [1][6]. Financial Performance - Total product sales for the fourth quarter were $7.9 billion, a 5% increase year-over-year, while excluding Veklury, sales were $7.7 billion, up 7% [2]. - For the full year 2025, Gilead's total product sales were $28.9 billion, up 1% from 2024, exceeding guidance [3]. - The base business sales, excluding Veklury, were $28.0 billion, up 4% year-over-year, and would have been 8% without the impact of the Medicare Part D redesign [2][6]. HIV Business Highlights - The HIV business faced a $900 million headwind from the Part D redesign in 2025, but management indicated that excluding this impact, HIV sales grew by 10% [1]. - Biktarvy, a key treatment, generated fourth-quarter sales of $4.0 billion, up 5% year-over-year, and full-year sales of $14.3 billion, up 7% [7]. - The injectable HIV prevention product Sunlenca generated $150 million in 2025, with management forecasting about $800 million in revenue for 2026 [8][9]. Liver and Oncology Performance - Gilead's liver disease business grew 6% in 2025 to $3.2 billion, with fourth-quarter sales of $844 million, up 17% year-over-year, driven by the adoption of Livdelzi [12]. - In oncology, Trodelvy sales rose 6% in 2025 to $1.4 billion, with fourth-quarter sales of $384 million, up 8% year-over-year [13]. Future Guidance and Pipeline - For 2026, Gilead expects total product sales of $29.6 billion to $30.0 billion, with base business sales projected to grow 4% to 5% [21]. - The company plans multiple potential launches in 2026, including Trodelvy for first-line TNBC and a combination therapy for HIV [5][18]. - Management anticipates a product gross margin of about 87% and non-GAAP diluted EPS of $8.45 to $8.85 for 2026 [22]. Capital Return Strategy - Gilead returned $5.9 billion to shareholders in 2025, including $1.9 billion in share repurchases, and aims to return at least 50% of free cash flow to shareholders [24].