Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 31 Oct, 25 | GILD | Buy | USD 118.44 | USD 124.0 | USD 132.0 | 81 days | Closed |
6.58%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis. It also offers Yescarta, Tecartus, and Trodelvy products for the treatment of oncology; Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. The company has collaboration agreements with Arcus Biosciences, Inc.; Merck Sharp & Dohme Corp.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Dragonfly Therapeutics, Inc.; Arcellx, Inc.; Everest Medicines; Merck & Co, Inc.; Tentarix Biotherapeutics Inc.; and Assembly Biosciences, Inc. It also has research collaboration, option, and license agreement with Merus N.V. for the discovery of novel dual tumor-associated antigens (TAA) targeting trispecific antibodies. The company was incorporated in 1987 and is headquartered in Foster City, California.
Robust HIV and Liver Portfolio Momentum: HIV product sales increased from USD 5.1 billion in Q3 FY24 to USD 5.3 billion in Q3 FY25, reflecting 4% year-over-year growth. Liver disease portfolio sales increased from USD 732 million in Q3 FY24 to USD 819 million in Q3 FY25, marking 12% year-over-year growth.
Strong Earnings Growth: Non-GAAP net income increased from USD 2.53 billion in Q3 FY24 to USD 3.10 billion in Q3 FY25, representing a 22% year-over-year rise
Weakness in Cell Therapy Franchise: Cell therapy sales decreased from USD 485 million in Q3 FY24 to USD 432 million in Q3 FY25, down 11% year-over-year
Decline in Total Product Sales: Total product sales decreased from USD 7.52 billion in Q3 FY24 to USD 7.30 billion in Q3 FY25, a 2% year-over-year decline. Veklury sales declined from USD 684 million in Q3 FY24 to USD 277 million in Q3 FY25, reflecting a 60% year-over-year decrease
Gilead faces key investment risk from product concentration in its HIV portfolio, where future revenue growth may be adversely affected by pricing pressures, payer mix shifts, and potential delays in regulatory approvals for next-generation treatments
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 118.44 | 102.0 | 124.0 | 132.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Solid Operational and Financial Performance: Gilead Sciences reported robust operational and financial performance in the third quarter of FY25, underscoring consistent execution across its core therapeutic areas. Total product sales, excluding Veklury, rose by 4% year-over-year to USD 7.1 billion, driven by strength in the HIV and liver disease portfolios. Including Veklury, total product sales were USD 7.3 billion, reflecting a 2% decline year-over-year primarily due to lower COVID-related hospitalizations. Non-GAAP diluted earnings per share increased 22% year-over-year to USD 2.47, or USD 2.22 excluding a nonrecurring accounting benefit.
HIV Portfolio – Sustained Leadership and Growth: The HIV business delivered strong momentum, with product sales increasing 4% year-over-year to USD 5.3 billion. Biktarvy sales grew 6% year-over-year to USD 3.7 billion, maintaining its leading position with a 52% market share in the U.S. treatment segment. Descovy also performed exceptionally well, recording a 20% year-over-year increase to USD 701 million, supported by demand for PrEP and a 45% market share in the U.S. prevention segment. The recently launched Yeztugo achieved USD 39 million in quarterly sales and secured 75% payer access, three months ahead of schedule.
Liver Disease Franchise – Strength from Livdelzi: The liver disease segment recorded 12% year-over-year growth, totaling USD 819 million in Q3 FY25. The growth was driven primarily by Livdelzi, which achieved USD 105 million in sales—a 35% sequential increase—and became the number one prescribed therapy for second-line primary biliary cholangitis (PBC) in the U.S. Gilead also filed for FDA approval of bulevirtide (Hepcludex) for chronic Hepatitis Delta Virus, expanding its late-stage pipeline and reinforcing its leadership in liver therapeutics.
Oncology Segment – Mixed Performance: In oncology, Trodelvy sales grew 7% year-over-year to USD 357 million, reflecting continued strength in metastatic breast cancer indications despite inventory and pricing headwinds. Conversely, the cell therapy portfolio, which includes Yescarta and Tecartus, experienced an 11% year-over-year decline to USD 432 million, affected by competitive pressures from new entrants and alternative therapeutic options. The company remains focused on broadening adoption and expanding its cell therapy pipeline through novel programs such as anito-cel, targeting a potential 2026 launch in multiple myeloma.
Financial Discipline and Earnings Growth: Gilead maintained disciplined expense management, achieving a 13% reduction in non-GAAP operating expenses to USD 2.9 billion. R&D spending decreased 3% year-over-year, while SG&A expenses declined 4% due to timing-related factors. Operating margin improved to 50%, up from 43% a year earlier. Non-GAAP net income rose 22% to USD 3.1 billion, highlighting strong operating leverage despite continued pricing headwinds and product mix shifts.
Cash Returns and Capital Allocation: The company continued to prioritize shareholder returns and balance sheet strength. In Q3 FY25, Gilead paid USD 1.0 billion in dividends and repurchased USD 435 million worth of shares, equivalent to 3.8 million shares at an average price of USD 113.25. Management reaffirmed its full-year 2025 guidance, projecting non-GAAP EPS between USD 8.05 and USD 8.25, reflecting upward revisions to HIV revenue growth estimates from ~3% to ~5%.
Strategic Outlook and Pipeline Progress: Gilead continues to progress an expansive late-stage pipeline across HIV, liver disease, and oncology. Key milestones expected in late 2025 include Phase 3 updates from the ARTISTRY-1 and ARTISTRY-2 trials evaluating bictegravir/lenacapavir, and pivotal readouts from oncology trials such as ASCENT-07 and iMMagine-1. The company remains confident in sustaining growth, with no major loss of exclusivity expected until 2036, supported by a strong R&D engine and diversified portfolio.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Gilead Sciences, Inc (NASDAQ: GILD) at the closing market price of USD 118.44, as on October 30, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Drug Manufacturers - General
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| GILD Gilead Sciences Inc |
0.58 0.41% | 143.47 | 182.69 | 9.64 | 3.13 | 3.72 | 3.78 | 9.78 |
| LLY Eli Lilly and Company |
-42.135 4.04% | 1002.00 | 78.14 | 31.95 | 16.34 | 45.83 | 16.65 | 54.36 |
| JNJ Johnson & Johnson |
2.76 1.20% | 233.51 | 29.17 | 14.33 | 3.74 | 5.18 | 3.80 | 15.22 |
| ABBV AbbVie Inc |
0.55 0.24% | 226.19 | 61.52 | 14.86 | 5.62 | 51.62 | 6.76 | 20.58 |
| MRK Merck & Company Inc |
2.56 2.25% | 115.92 | 59.83 | 12.33 | 4.50 | 6.47 | 4.94 | 23.79 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on October 31, 2025. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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