Gilead Q2 revenue jumps 10% as PrEP sales top $1 billion

Gilead Sciences reported second-quarter revenue of $7.8 billion, up 10% from a year earlier and 6.2% above the $7.35 billion consensus, as HIV prevention sales topped $1 billion for the first time and the company raised its full-year HIV growth outlook.

"Gilead delivered a very strong second quarter, with 10% year-over-year revenue growth in our base business driven by our HIV portfolio, Trodelvy and Livdelzi," Chairman and Chief Executive Officer Daniel O'Day said. "HIV sales grew 12%, reflecting continued strength in treatment and the rapid expansion of our PrEP business."

Product sales excluding Veklury rose 10% to $7.6 billion, led by HIV products, Trodelvy and Livdelzi. HIV sales climbed 12% to $5.7 billion, with Biktarvy up 7% to $3.8 billion and Descovy up 48% to $967 million. The PrEP franchise doubled year over year to exceed $1 billion in a single quarter, reaching a $4 billion annual run rate, with long-acting injectable Yeztugo (lenacapavir) generating $232 million, up 40% sequentially. Trodelvy (sacituzumab govitecan-hziy) rose 26% to $457 million, while Livdelzi (seladelpar) more than doubled to $167 million. Cell therapy sales fell 14% to $417 million on competition, and Veklury dropped 81% to $23 million as COVID-19 hospitalizations eased.

Reported diluted loss per share was $8.45, and non-GAAP loss per share was $6.75, reflecting $11.2 billion in acquired in-process research and development charges tied to the Arcellx, Tubulis and Ouro Medicines acquisitions. Excluding those deals and a non-recurring royalty item, illustrative EPS was $2.27, up about 13% year over year, Chief Financial Officer Andrew Dickinson said. Shares closed up 3.14% at $135.27 before easing 0.84% to $134.11 after hours.

Gilead raised its full-year base business sales outlook to $29.8 billion to $30.1 billion, representing 6% to 7% growth, and now expects total product sales of $30.1 billion to $30.4 billion. HIV growth guidance was lifted to 9% to 10% from 8%, with Yeztugo on track for about $1 billion in 2026 sales. The company expects an FDA decision on once-daily bictegravir/lenacapavir by Aug. 27 and on anito-cel in multiple myeloma by Dec. 23, with two additional commercial launches planned in the second half.

The guidance raise signals management expects HIV demand to keep accelerating even as the treatment market absorbs the loss of Affordable Care Act exchange subsidies. Investors will watch the Aug. 27 BIC/LEN decision and the Dec. 23 anito-cel PDUFA date as the next catalysts for the stock.

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