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Investing.com -- Gilead Sciences Inc . (NASDAQ:GILD) reported first quarter earnings that beat expectations, but shares fell over 4% in pre-open trading as revenue came in below analyst estimates.
The biopharmaceutical company posted adjusted earnings per share of $1.81, topping the consensus forecast of $1.77. However, revenue of $6.67 billion missed Wall Street’s projection of $6.78 billion.
Gilead’s HIV product sales, which make up the bulk of its revenue, increased 6% YoY to $4.6 billion, but fell 16% quarter-on-quarter. Sales of its blockbuster HIV drug Biktarvy rose 7% from last year to $3.1 billion.
"Gilead had a strong start to the year driven by excellent commercial and clinical execution along with disciplined expense management," said CEO Daniel O’Day. "Our base business grew 4% year-over-year, primarily led by Biktarvy’s continued strength."
Sales of Gilead’s cancer drug Trodelvy declined 5% to $293 million during the quarter, missing expectations of $362 million, as pricing and inventory challenges weighed on performance. Gilead also reported a 3% drop in cell therapy sales to $464 million, citing heightened competition in the U.S. market.
While expecting a HIV sales hit, Oppenheimer analysts said they were more surprised by the underwhelming Trodelvy sales.
Still, excluding Veklury, Gilead posted 4% year-over-year revenue growth and returned $1.7 billion to shareholders through dividends and share buybacks. "That’s something that shouldn’t be overlooked in this market," Oppeneheimer’s team wrote, reiterating a Buy rating, while trimming the price target to $125 from $132.
For the full year 2025, Gilead maintained its adjusted EPS guidance of $7.70 to $8.10. The company also reiterated its revenue forecast of $28.2 billion to $28.6 billion, which falls short of the $28.73 billion analysts were expecting.
Goldman Sachs analysts said they see Gilead as "relatively well positioned" with respect to tariff risks, "given that the majority of IP and ~80% of its profits are in the U.S."
"While we view GILD as defensive in the context of the aforementioned tariff/tax overhang on the sector, potential policy-level risks bear monitoring. Post, we view the company as well-positioned into the mid-25 lenacapavir launch," they added.
Rachael Rajan contributed to this report.