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November 8, 2025 • 3 min read
Gilead Sciences, a major biopharmaceutical player known for its antiviral treatments, recently filed its third-quarter 2025 financial report. For those looking to understand the company's current health, the income statement offers a detailed look under the hood. You can dive into the full 10-Q filing with the SEC for all the details. Let's break down the key takeaways.
At first glance, Gilead's performance looks solid. Total revenues for the third quarter of 2025 edged up 3% year-over-year to $7.8 billion. While steady, the real story is the dramatic turnaround in profitability. Net income attributable to Gilead soared to $3.1 billion, a stark contrast to the $1.3 billion earned in the same quarter last year.
What fueled this massive jump? It wasn't a sudden explosion in sales, but rather a significant reduction in specific, high-ticket expenses. In Q3 2024, Gilead recorded a hefty $1.75 billion impairment charge on "In-process research and development" (IPR&D). IPR&D refers to the value of drug candidates acquired in mergers that have not yet received regulatory approval. Such impairments occur when the company determines a drug is less likely to succeed than previously thought. The absence of a similar charge this quarter, combined with lower spending on new acquisitions, made a huge difference to the bottom line.
The following flow diagram illustrates how Gilead's revenue streams and expenses for the third quarter ultimately translate into its net income.
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Gilead's revenue is driven by a few key franchises, each with its own story this quarter.
HIV Franchise: This remains the company's unshakable foundation. The segment grew 4% to $5.3 billion. The blockbuster drug Biktarvy continued its impressive run, with sales climbing 6% to $3.7 billion. Descovy, used for both treatment and prevention (PrEP), also posted strong 20% growth, reaching $701 million in quarterly sales. This robust performance more than offset declines in older HIV therapies.
Oncology: The picture here is more mixed. Total oncology sales dipped 3% to $788 million. While the cancer drug Trodelvy showed healthy 7% growth, sales from the Cell Therapy division (Yescarta and Tecartus) declined 11% to $432 million. As a key area for future growth, this dip in cell therapy will be closely watched by investors.
Veklury (Remdesivir): As expected, sales of the COVID-19 antiviral treatment continued to fall, dropping 60% to $277 million as the pandemic's impact lessens globally.
Gilead's Q3 2025 results highlight a company in a strong financial position, with profitability greatly improved from a year ago. The core HIV business continues to be a reliable engine of growth and cash flow.
However, the path forward depends on the success of its newer ventures. The slight contraction in the promising Oncology segment, particularly in Cell Therapy, underscores the challenges of diversifying its revenue base. As stated in its filing, Gilead faces significant competition and pricing pressures across its portfolio. The company's main challenge will be to translate its R&D and acquisition strategy into consistent growth from its oncology and inflammation pipelines to secure its long-term trajectory.
Last updated: November 8, 2025