GILD · Q4 2025 Earnings

Q: Asked about GS3242 long-acting Q6M treatment profile, Phase I data excitement, and competitive comparison to Shinogi's Veve program

Dietmar Berger highlighted GS3242 as most promising long-acting INSTI program identified from Phase I evaluation. Emphasized integrase inhibitor component as differentiator providing tolerability, resistance profile, and forgiveness benefits. Noted two Q6M programs in development: GS3242+lenacapavir (oral) and lenacapavir+broadly neutralizing antibodies (infusion). Declined detailed competitor comparison but noted competitors cannot base Q6M on single product. Expected more detailed data on GS3242 during 2026.

Bullish

Gilead Sciences

Reported February 10, 2026

30-second summary

30-second take: Gilead closed Q4 FY2025 with revenue of $7.93B (+5% YoY) and non-GAAP EPS of $1.86, and introduced initial FY2026 product sales guidance of $29.6B–$30.0B (+3-4% YoY vs $28.9B actual) and non-GAAP EPS of $8.45–$8.85 (+4-9% YoY vs $8.15 actual). The clean signal is FY2026 product sales ex-Veklury of $29.0B–$29.4B (+4-5% YoY vs $28.0B actual) driven by HIV (+6% in Q4), Descovy (+33%), Liver Disease (+17%), and the Yeztugo/Livdelzi launches. Veklury FY2026 is guided to $600M, -34% vs FY2025 actual of $911M, reflecting continued COVID-hospitalization normalization that management is now sizing explicitly into the base year.

Headline numbers

EPS

Q4 FY2025

$1.86

Revenue

Q4 FY2025

$7.92B

+5.0% YoY

Gross margin

Q4 FY2025

79.5%

Free cash flow

Q4 FY2025

$3.12B

Operating margin

Q4 FY2025

25.0%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$7.92B	+5.0%	$7.77B	+2.0%
EPS	$1.86	—	$2.47	-24.7%
Gross margin	79.5%	—	78.6%	+90bps
Operating margin	25.0%	—	42.8%	-1780bps
Free cash flow	$3.12B	—	$3.96B	-21.2%

Guidance

Gilead raised FY2026 full-year guidance substantially across revenue, GAAP EPS, and Non-GAAP EPS, driven by strong HIV and Liver Disease growth offsetting significant Veklury declines.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$28.4–28.7 billion	$29.6–30.0 billion	+$1.2–1.3 billion (~4.2% midpoint increase)	Raised
GAAP Diluted EPS	FY2026	$6.65–6.85	$6.75–7.15	+$0.10–0.30 (midpoint +$0.20 or ~3.0%)	Raised
Non-GAAP Diluted EPS	FY2026	$8.05–8.25	$8.45–8.85	+$0.40–0.60 (midpoint +$0.50 or ~6.1%)	Raised
Product Sales Excluding Veklury	FY2026	$27.4–27.7 billion	$29.0–29.4 billion	+$1.3–1.7 billion (~5.3% midpoint increase)	Raised
Veklury	FY2026	$1,000 million	$600 million	−$400 million (−40%)	Lowered

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
HIV	$5.801B	+6.0%
Biktarvy	$3.968B	+5.0%
Descovy	$0.819B	+33.0%
Liver Disease	$0.844B	+17.0%
Oncology	$0.842B	—
Cell Therapy	$0.458B	-6.0%
Veklury	$0.212B	-37.0%
HIV Product Sales Growth YoY	6%	—
Product Sales Excluding Veklury Growth YoY	7%	—
Biktarvy Sales Growth YoY	5%	—
Descovy Sales Growth YoY	33%	—
Liver Disease Sales Growth YoY	17%	—

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
U.S.	$5.873B	+6.0%
Europe	$1.221B	+5.0%
Rest of World	$0.808B	-2.0%
Non-GAAP Product Gross Margin	86.8%	—
Non-GAAP Operating Margin	39.0%	—
Operating Cash Flow	$3.3 billion	—

Management tone

Narrative arc: Q2 launch euphoria → Q3 ramp execution → Q4 portfolio re-platforming.

The 2026 launch slate finally got named. The Q3 brief called out "multiple potential product launches in 2026" as rhetoric unless specific assets were disclosed. Management closed that loop: "in 2026, our potential new launches include two cancer therapies and an additional HIV treatment option." The pipeline now reads as discrete events (AnitoCell H2 2026 with $3.5B fourth-line myeloma TAM per Q&A; an additional HIV asset) rather than a promise. This is the most concrete pipeline articulation in three quarters and validates the "no major LOE until 2036" framing management introduced last quarter.

Veklury sized into the base rather than defended. Two quarters ago Veklury was being defended at a $1.0B FY run rate; this quarter management explicitly guided to $600M for FY2026 and pivoted the narrative to Yeztugo, Livdelzi, and "the strongest clinical pipeline in Gilead's history." Andy's framing — $300M Veklury headwind "more than offset in our base business" — is the right one for the long-duration thesis.

Yeztugo language matured from "milestone" to operational metrics. Q2 was "bend the arc of the epidemic"; Q3 was "gradual ramp, not step function"; Q4 in Q&A is "90% payer coverage in less than 6 months, 90% of covered individuals with $0 copay." Joanna Mercier's response to JPMorgan on the $800M FY2026 Yeztugo number was operational — sourcing, refills, DTC, auto-refill scripts — not aspirational. This is the right tone for an asset transitioning from launch to base business.

Q&A highlights

Chris Schott · JPM

Requested elaboration on assumptions driving Yes2Go $800M guidance and refill rate expectations as patients require redosing

Joanna Mercier emphasized early launch indicators (access, HCP awareness, conversion rates) tracking to plan with 90% payer coverage and $0 copay for 90% of covered individuals. Acknowledged small number currently eligible for second dose due to June 2025 launch timing; tracking persistency closely with planned activities including auto-refill scripts, specialty pharmacy outreach, and digital reminders. Did not provide specific refill rate assumptions.

90% payer coverage achieved in less than 6 months90% of covered individuals have $0 copayYes2Go launched June 2025DTC campaign recently launched

Louise Chen · Scotiabank

Asked about expected share gains for AnitoCell in fourth-line multiple myeloma setting given entrenched competition

Cindy Peretti provided guidance: $3.5B fourth-line market; modest 2026 contribution due to H2 2026 launch and QAT turnon timing; expects market leadership over time based on efficacy (96% ORR, 74% CR, 95% MRD negativity) and differentiated safety profile (no delayed neurotoxicities, no ICANS enterocolitis). Highlighted Kite's manufacturing advantages: 99% reliability and 16-day turnaround.

$3.5 billion fourth-line multiple myeloma market96% overall response rate74% complete response rate95% measurable residual disease negativity

Tazeen Ahmad · Bank of America

Asked about Yes2Go growth outlook, expected Descovy cannibalization timing, and Yes2Go net price evolution over time

Joanna Mercier indicated Yes2Go growth will accelerate Q1 through Q4 2026 with modest Q1 start building throughout year, supported by access initiatives, DTC campaign, and targeted market expansion. Expects Descovy to continue growing in 2026 with both products rising together due to overall HIV prevention market expansion from Purpose trials awareness. Declined to discuss gross-to-net but emphasized Yes2Go's differentiated value proposition evidenced by 90% payer coverage achievement in <6 months.

Yes2Go growth expected to accelerate quarter-on-quarter in 2026Descovy expected to continue growth in 202690% payer coverage achieved in <6 monthsPurpose trials driving overall HIV prevention market awareness

Michael Yee · UBS

Asked about GS3242 long-acting Q6M treatment profile, Phase I data excitement, and competitive comparison to Shinogi's Veve program

Dietmar Berger highlighted GS3242 as most promising long-acting INSTI program identified from Phase I evaluation. Emphasized integrase inhibitor component as differentiator providing tolerability, resistance profile, and forgiveness benefits. Noted two Q6M programs in development: GS3242+lenacapavir (oral) and lenacapavir+broadly neutralizing antibodies (infusion). Declined detailed competitor comparison but noted competitors cannot base Q6M on single product. Expected more detailed data on GS3242 during 2026.

GS3242 selected as most promising long-acting INSTI candidateGS1219 twice-yearly development discontinuedGS1614 quarterly regimen discontinuedTwo Q6M HIV treatment programs in development

Answers to last quarter's watch list

Yeztugo Q4 trajectory vs. the ~$150M FY guide. Yeztugo FY2025 sales landed at $150M (in line with prior guidance per Mercier), with Q4 contribution of $96M. FY2026 Yeztugo guided to ~$800M, a meaningful step-up that supports the launch tracking to or above plan. Mercier's Q&A confirmed Q1 2026 Yeztugo will start modestly with quarter-on-quarter acceleration. Status: Resolved positively

Veklury Q4 print vs. the $1.0B FY reaffirmation. Q4 Veklury landed at $212M (-37% YoY) and FY2025 closed at $911M, modestly below the $1.0B reaffirmed guide. FY2026 Veklury guided to $600M, codifying continued COVID-hospitalization normalization. Status: Resolved

CVS pricing resolution. No CVS-specific disclosure in the press release or extracted Q&A. Management cited 90% payer coverage achieved in <6 months for Yeztugo, which suggests broad payer progress, but the CVS-specific question remains unanswered. Status: Continue monitoring

HIV ex-Part D bridge for FY2026. Management did provide an explicit bridge: FY2025 HIV +6% reported / +10% ex-Part D, and FY2026 HIV guided to +6% reported / +8% absent the ~2% headwind from the Medicaid pricing agreement and ACA changes. Status: Resolved

4182-1720 / WONDER program replacement molecule. Three consecutive quarters of silence. Berger discussed pipeline rationalization (GS1219 and GS1614 discontinued) but no replacement for the 4182-1720 molecule was named. The silence now strongly suggests deprioritization. Status: Resolved negatively

2026 launch slate specifics. Closed cleanly: "two cancer therapies and an additional HIV treatment option" in 2026, with AnitoCell H2 2026 explicitly named and sized in Q&A ($3.5B fourth-line myeloma TAM). The rhetoric became pipeline. Status: Resolved positively

What to watch into next quarter

Yeztugo Q1 2026 print vs. the implied $800M FY2026 trajectory. Mercier guided to a modest Q1 with QoQ acceleration; anything below ~$120M in Q1 would suggest the ramp is back-loaded in a way that adds execution risk to the FY number.

Veklury Q1 2026 vs the new $600M FY guide. Q4 FY2025 at $212M sets a high implicit Q1 starting point; if Veklury runs hot early, the guide may prove conservative. If it doesn't, the $600M floor will be tested.

AnitoCell launch readiness milestones. Manufacturing (16-day turnaround, 99% reliability per Peretti) and QAT activation timing are the binding constraints for H2 2026 launch. Watch for site activations and first-script disclosure at Q2 or Q3 2026.

HIV ex-Part D / ex-policy framing for FY2026. Management has consistently bridged underlying vs reported. Whether they continue this disclosure each quarter in 2026 will signal confidence in lapping the Medicaid and ACA headwinds cleanly.

GS3242 Phase I data disclosure. Berger said more detailed data is expected during 2026. A specific data readout date or conference would crystallize the long-acting HIV competitive position vs Shionogi's program.

Cell Therapy stabilization confirmation. Q4 -6% improved from Q3 -11%, but FY2026 guide implies a -10% decline. Q1 2026 needs to show whether the franchise is stabilizing or stepping back down under new competitive entrants outside the U.S.

Sources

Gilead Sciences Q4 FY2025 press release and financial tables (SEC EDGAR exhibit 99.1), 2026-02-10: https://www.sec.gov/Archives/edgar/data/882095/000088209526000003/exhibit991earningspressrel.htm
Gilead Sciences Q4 FY2025 earnings call transcript (prepared remarks and Q&A)
Gilead Sciences Q3 FY2025 Tapebrief, 2025-10-30 (prior-quarter watch list and guidance baseline)
Gilead Sciences Q2 FY2025 Tapebrief, 2025-08-07 (multi-quarter narrative arc)

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