Gilead Sciences Earnings
Gilead Sciences, Inc. has unveiled its financial results for the fourth quarter and the full year of 2024, marking significant achievements across its diverse portfolio. The company reported a strong financial position, with total revenue reaching $7.6 billion for Q4 2024, reflecting a 6% year-over-year increase. Key drivers included robust sales in segments focusing on HIV, oncology, and liver disease, tempered by a reduction in sales of Veklury (remdesivir) as the incidence of COVID-19 hospitalizations declined.
Key Financial Metrics for Q4 2024
| Financial Metric | Q4 2024 | YoY Change (%) |
|---|---|---|
| Total Revenue | $7.6 billion | +6% |
| Diluted EPS | $1.42 | +24.6% |
| Non-GAAP Diluted EPS | $1.90 | +10.5% |
| Cash, Cash Equivalents & Marketable Securities | $10.0 billion | +19% |
| Operating Cash Flow | $3.0 billion | N/A |
Among these, the impressive 24.6% increase in diluted earnings per share (EPS) stands out, driven by effective pricing strategies and growing demand across various segments.
Gilead Sciences Results
The Q4 results underscore a robust performance, with notable contributions from its leading therapeutic sectors. The reported $7.6 billion revenue demonstrates a balanced growth trajectory bolstered by increased adoption and favorable conditions in the HIV and oncology markets. These advancements were somewhat offset by decreased revenue from Veklury, which saw reduced demand as the pandemic wanes.
Revenue Breakdown
Performance by Segment
| Segment | Q4 2024 Revenues | YoY Change (%) |
|---|---|---|
| HIV | $5.5 billion | +16% |
| Biktarvy® | $3.8 billion | +21% |
| Descovy® | $616 million | +21% |
| Liver Disease | $719 million | +4% |
| Oncology | $3.3 billion | +12% |
| Cell Therapy | $488 million | +5% |
The breakdown illustrates a dominant performance in the HIV segment, buoyed by the success of drugs like Biktarvy® and Descovy®, each recording a 21% year-over-year increase. The liver disease portfolio also showed modest growth, attributed to new launches and heightened market demand.
The oncology division demonstrated a solid growth rate of 12%, benefiting from ongoing global demand and strategic initiatives, while liver disease treatments witnessed constrained revenues primarily due to price adjustments in hepatitis C therapies.
Key Developments
During the quarter, Gilead introduced Livdelzi® for treating primary biliary cholangitis, an addition expected to boost its liver disease segment. The company also fortified its financial standing by issuing $3.5 billion in senior unsecured notes and executed significant shareholder return initiatives, including $973 million in dividends and $350 million in stock repurchases. Furthermore, Gilead reported favorable outcomes from clinical trials and gained regulatory backing for promising treatments like lenacapavir and seladelpar.
Comments from Company Officers
Daniel O'Day, the Chairman and CEO, expressed confidence in the company's fiscal health and strategic direction, celebrating sales expansion and operational efficiencies. He emphasized the anticipated impact of future launches such as lenacapavir for HIV PrEP, projected for 2025, reinforcing Gilead's commitment to innovation and shareholder value.
Dividends and Share Repurchases
The board declared a quarterly dividend of $0.79 per share, continuing its tradition of returning capital to investors. Additionally, the company repurchased $350 million in stock, reflecting its staunch belief in its intrinsic value and future prospects.
Gilead Sciences Stock Forecast
Following the positive earnings report, Gilead's stock price appreciated by approximately 0.80%. Considering the company's formidable portfolio and business strategy, we anticipate a moderate upward trend in the stock price. Based on current performance metrics, market capitalization of approximately $85.75 billion, and strategic pipeline advancements, we project a potential stock price range of $90 to $105 over the next year. These estimates incorporate expected revenue growth from core segments, market conditions, and ongoing fiscal policies.
In summation, Gilead Sciences has charted a path of sustainable growth through strategic foresight and a firm grasp on key therapeutic arenas, promising continued shareholder value and market resilience moving forward.
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