Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best immunotherapy stocks to buy according to hedge funds. Gilead Sciences, Inc. (NASDAQ:GILD) announced its fiscal Q4 and full year 2025 results on February 10, reporting a strong year marked by the continued growth of Biktarvy and Descovy, along with the successful launch of Yeztugo, the world’s first twice-yearly HIV prevention therapy in the country. Gilead (GILD) Reaches Pricing Agreement with US Government to Lower Drug Costs Gilead Sciences, Inc. ( ...

Core Insights - Gilead Sciences, Inc. (GILD) reported strong fourth-quarter and full-year 2025 results, with HIV product sales increasing by 6%, driven by a 7% growth in Biktarvy and a 47% surge in its prevention portfolio [1][2][10] Group 1: HIV Product Performance - Biktarvy holds over 52% market share in the HIV treatment market and is the most prescribed therapy for both treatment-naïve and switch patients [2] - Descovy's sales increased by 31% year over year to $2.8 billion, accounting for more than 45% of the U.S. market share in pre-exposure prophylaxis (PrEP) [3] - The FDA approved injectable lenacapavir (Yeztugo), which offers a twice-yearly dosing schedule, enhancing adherence compared to daily oral regimens [4] Group 2: Financial Projections and Growth Drivers - Despite a $900 million headwind from the Medicare Part D redesign, HIV sales grew 10% when excluding this impact, surpassing management's annual target of 5% growth [2][10] - Gilead expects total HIV sales to grow approximately 6% year over year in 2026, with potential growth of 8% when excluding pricing pressures and channel mix shifts [6] - Early uptake of Yeztugo generated $150 million in 2025, with projected revenues of approximately $800 million in 2026 [5] Group 3: Research and Development Initiatives - Positive phase III results from ARTISTRY-1 and ARTISTRY-2 studies for the investigational BIC/LEN regimen increase the likelihood of regulatory approval, potentially launching by year-end [7] - Gilead is collaborating with Merck to advance its HIV pipeline, with data from studies on islatrovir plus lenacapavir expected in 2026 [8] - Plans to initiate a phase III study evaluating lenacapavir plus broadly neutralizing antibodies are set for the second half of the year [9] Group 4: Competitive Landscape - Gilead faces competition from major players like GSK and Merck in the HIV treatment market, with GSK's growth driven by long-acting injectable medicines [11] - Merck markets doravirine and is evaluating a once-daily oral regimen for treatment-naïve adults with HIV-1 infection [12] Group 5: Stock Performance and Valuation - GILD shares surged 45.9% over the past year, outperforming the industry's growth of 19.6% [15] - The current price/earnings ratio for GILD is 17.46x forward earnings, higher than its historical mean but lower than the large-cap pharma industry average of 18.51x [16]

Group 1 - Gilead Sciences, Inc. (NASDAQ:GILD) is recognized as a strong investment opportunity by hedge funds, with BofA raising its price target to $162 from $154 while maintaining a Buy rating [1] - The company reported strong fiscal Q4 and full year 2025 results, highlighting the successful launch of Yeztugo, the first twice-yearly HIV prevention therapy, and continued growth in Biktarvy and Descovy [2] - Total fiscal Q4 revenues increased by 5% to $7.9 billion compared to the previous year, driven by higher sales of HIV and Liver Disease products, despite a decline in Veklury® sales [3] Group 2 - Gilead Sciences, Inc. is a biotech company focused on developing medicines for serious diseases, including cancer, HIV, viral hepatitis, and COVID-19, with a portfolio that addresses unmet medical needs [4]

Core Viewpoint - Gilead Sciences experienced a significant stock increase of nearly 6% following favorable Q4 results, with a notable 100% gain over the past two years, reaching an all-time high of $157 per share [1]. Q4 Results - Gilead reported Q4 sales of $7.92 billion, a 5% increase from $7.56 billion in the same quarter last year, exceeding estimates of $7.57 billion [2]. - The HIV franchise sales grew by 6%, driven by strong demand for products like Biktarvy and Descovy, while liver disease revenue rose by 17%, led by Livdelzi [2]. - Net income for the quarter was $2.2 billion, translating to an adjusted EPS of $1.86, which surpassed expectations of $1.83 despite a decline from $1.90 per share a year ago [2]. Full Year Results & Guidance - For FY25, Gilead's EPS is projected to spike by 76% to $8.15 compared to $4.62 per share in 2024, with annual sales increasing over 2% to $29.44 billion [4]. - Gilead's guidance for FY26 anticipates annual sales between $29.6 billion and $30 billion, slightly below Wall Street's estimate of $30.04 billion, but the top end of EPS guidance ($8.45-$8.85) exceeds expectations of $8.61 [5]. Valuation and Dividend - Gilead's valuation remains attractive at 17X forward earnings, which is below the S&P 500 average and the industry average of 19X [6]. - The company offers a 2.15% annual dividend yield, higher than the S&P 500's average of 1.07%, with a payout ratio of 39% [8][9]. Return on Invested Capital (ROIC) - Gilead has a return on invested capital (ROIC) of 24%, significantly higher than many biopharmaceutical companies, which typically have ROIC in the mid-teens or single digits due to high R&D investments [10]. Investment Outlook - Following the favorable Q4 results, Gilead Sciences holds a Zacks Rank 3 (Hold), presenting an intriguing option for long-term investors seeking value and income [11].

Core Viewpoint - Gilead Sciences is experiencing strong financial performance and growth potential, particularly in its HIV and liver disease segments, supported by a robust pipeline of new products and an optimistic outlook from analysts [1][2][3][4][6]. Financial Performance - Gilead's Q4 2025 earnings report showed total product sales of $7.9 billion, marking a 5% increase year-over-year [2][6]. - For the full year 2025, total sales reached $28.9 billion, reflecting a 1% increase from 2024 [2][6]. - HIV sales specifically grew by 6% year-over-year, driven by the success of the drug Biktarvy and a 47% increase in the HIV prevention portfolio [2][6]. Product Developments - The new HIV prevention injectable, Yeztugo, has surpassed coverage goals and is gaining market share [3][6]. - Gilead's pipeline includes up to 10 ongoing and potential new launches through 2027, with four commercial launches planned for 2026 [3][6]. - The liver business reported a 6% growth, attributed to the adoption of Livdelzi for primary biliary cholangitis [4][6]. - Trodelvy, an oncology product, also demonstrated positive momentum with a 6% growth in 2025, supported by favorable Phase results [4][6]. Analyst Ratings - BMO Capital has maintained an "Outperform" rating for Gilead, raising the price target from $150 to $160, indicating confidence in the company's future performance [1][6].

Core Viewpoint - Gilead Sciences, Inc. reported strong fourth-quarter results for 2025, with adjusted earnings per share (EPS) of $1.86, exceeding estimates, while total revenues of $7.9 billion also surpassed expectations, driven by growth in HIV and Liver Disease drugs [1][4][6]. Financial Performance - Adjusted EPS for Q4 2025 was $1.86, beating the Zacks Consensus Estimate of $1.83, but down from $1.90 a year ago due to higher acquired IPR&D expenses [1][6]. - Total revenues reached $7.9 billion, a 5% increase year over year, surpassing the Zacks Consensus Estimate of $7.6 billion [1][4]. - Product sales increased by 5% year over year to $7.9 billion, with HIV product sales growing 6% to $5.8 billion [4][5]. Product Sales Breakdown - Biktarvy sales rose 5% year over year to $4 billion, capturing over 52% of the U.S. HIV treatment market [5][6]. - Descovy sales surged 33% year over year to $819 million, driven by increased demand for HIV prevention [6][7]. - Liver Disease portfolio sales increased 17% to $844 million, exceeding estimates, primarily due to demand for Livdelzi [8]. - Veklury sales fell 37% to $212 million, attributed to lower COVID-19 hospitalization rates [8]. Cost and Expenses - Adjusted product gross margin was 86.8%, slightly up from 86.7% year over year [11]. - Research and development expenses remained flat at $1.6 billion, while SG&A expenses decreased to $1.7 billion from $1.9 billion [11][12]. 2025 and 2026 Guidance - For 2025, revenues rose 2% year over year to $29.4 billion, exceeding estimates, with adjusted EPS increasing to $8.15 from $4.62 in 2024 [13]. - Gilead expects 2026 product sales between $29.6 billion and $30 billion, with adjusted EPS projected in the range of $8.45-$8.85 [14][15]. Pipeline and Regulatory Updates - Positive phase III results for the investigational regimen of bictegravir and lenacapavir were reported, with a potential launch targeted for the second half of the year [16][23]. - Gilead has discontinued several studies based on recommendations from independent committees, including the phase III STAR-221 study [18][19]. Market Position and Competitive Landscape - Gilead's HIV business exceeded management's growth target, driven by strong performances from Biktarvy and Descovy, despite competitive pressures [21][22]. - The company anticipates continued competitive pressures in cell therapies and expects to face headwinds from U.S. government drug pricing agreements [24][27].

Core Viewpoint - Gilead Sciences Inc. reported strong fourth-quarter earnings but provided weak guidance for fiscal 2026, leading to a decline in share price [1][2]. Financial Performance - Gilead reported quarterly earnings of $1.86 per share, exceeding the consensus estimate of $1.81 [1]. - Quarterly revenue reached $7.93 billion, surpassing the Street estimate of $7.69 billion [1]. Future Guidance - For fiscal 2026, Gilead expects adjusted EPS in the range of $8.45 to $8.85, compared to the analyst estimate of $8.74 [2]. - Revenue guidance for fiscal 2026 is projected between $29.6 billion and $30 billion, below the analyst estimate of $30.22 billion [2]. Analyst Ratings and Price Targets - Needham analyst Joseph Stringer maintained a Buy rating and raised the price target from $140 to $170 [4]. - Scotiabank analyst Louis Chen maintained a Sector Outperform rating and increased the price target from $140 to $177 [4]. - Cantor Fitzgerald analyst Carter Gould maintained an Overweight rating and raised the price target from $135 to $155 [4]. Market Reaction - Following the earnings announcement and guidance, Gilead shares fell 1.8% to $144.55 in pre-market trading [2].

Core Viewpoint - Gilead expects its HIV portfolio sales to grow by 6% in 2026, driven by the recently launched PrEP drug Yeztugo, despite facing some headwinds from regulatory agreements and market conditions [1][2][6] Sales Performance - Gilead's HIV drugs generated $20.8 billion in sales for the full year 2025, marking a 6% increase from 2024, primarily due to the strong performance of Biktarvy, which saw sales rise by 7% to $14.3 billion [1][4] - The company anticipates total product sales between $29.6 billion and $30 billion in 2026, factoring in a decline in demand for Veklury, a Covid-19 antiviral [5] Yeztugo's Impact - Yeztugo, a biannual PrEP option, achieved $150 million in sales in 2025 after its FDA approval in June, with expectations to reach $800 million in 2026, representing a 433% year-over-year growth [3][6] - Analysts from Citi believe that the sales target for Yeztugo is achievable, indicating strong market potential [3] Future Projections - GlobalData forecasts that Yeztugo will continue to grow, potentially reaching $5.34 billion in annual sales by 2031, supported by ongoing demand for HIV prevention [4] - Gilead's CEO emphasized the company's secure business outlook, with no major loss of exclusivities until 2036, suggesting a stable growth trajectory [6]

Core Insights - Gilead Sciences reported $7.93 billion in revenue for Q4 2025, a year-over-year increase of 4.7% and a surprise of +4.63% over the Zacks Consensus Estimate of $7.57 billion [1] - The EPS for the same period was $1.86, slightly down from $1.90 a year ago, with an EPS surprise of +1.91% compared to the consensus estimate of $1.83 [1] Financial Performance - Total product sales in the U.S. reached $5.87 billion, exceeding the average estimate of $5.59 billion, representing a year-over-year change of +5.8% [4] - Total product sales globally were reported at $7.9 billion, surpassing the six-analyst average estimate of $7.53 billion, with a year-over-year change of +4.9% [4] - Royalty contract and other revenues were $22 million, below the average estimate of $38.66 million, reflecting a year-over-year decline of -33.3% [4] Product Sales Breakdown - Product sales for Liver Disease (Other) in the U.S. were $168 million, significantly above the average estimate of $141.36 million, marking a year-over-year increase of +189.7% [4] - Sales for HIV product Biktarvy totaled $3.97 billion, exceeding the average estimate of $3.79 billion, with a year-over-year change of +5.1% [4] - Sales for Veklury were $212 million, below the average estimate of $266.85 million, indicating a year-over-year decline of -37.1% [4] Stock Performance - Gilead's shares have returned +23.7% over the past month, while the Zacks S&P 500 composite showed no change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Gilead Sciences Inc. reported strong fourth-quarter earnings but provided weak guidance for fiscal 2026, leading to a decline in stock price during extended trading [1][3]. Financial Performance - Gilead reported quarterly earnings of $1.86 per share, surpassing the consensus estimate of $1.81 [2]. - Quarterly revenue reached $7.93 billion, exceeding the Street estimate of $7.69 billion [2]. Product Launch and Growth - The company highlighted the successful U.S. launch of Yeztugo, the world's first twice-yearly HIV prevention therapy, along with continued growth for Biktarvy and Descovy [2]. Future Outlook - For fiscal 2026, Gilead expects adjusted EPS in the range of $8.45 to $8.85, compared to the analyst estimate of $8.74 [3]. - Revenue guidance for fiscal 2026 is projected between $29.6 billion and $30 billion, below the analyst estimate of $30.22 billion [3]. Stock Performance - Following the earnings report, Gilead's stock price fell by 2.87% to $143 in extended trading [3].