Biopharmaceutical company Gilead Sciences (NASDAQ:GILD) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 5.2% year on year to $7.93 billion. On the other hand, the company’s full-year revenue guidance of $29.8 billion at the midpoint came in 1.2% below analysts’ estimates. Its non-GAAP profit of $1.86 per share was 1.9% above analysts’ consensus estimates.
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Gilead Sciences (GILD) Q4 CY2025 Highlights:
- Revenue: $7.93 billion vs analyst estimates of $7.68 billion (5.2% year-on-year growth, 3.2% beat)
- Adjusted EPS: $1.86 vs analyst estimates of $1.83 (1.9% beat)
- Adjusted Operating Income: $3.09 billion vs analyst estimates of $3.10 billion (39% margin, in line)
- Adjusted EPS guidance for the upcoming financial year 2026 is $8.65 at the midpoint, missing analyst estimates by 1%
- Operating Margin: 25%, down from 32.5% in the same quarter last year
- Free Cash Flow Margin: 39.4%, up from 37.5% in the same quarter last year
- Market Capitalization: $188.2 billion
Company Overview
From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ:GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Gilead Sciences’s 3.9% annualized revenue growth over the last five years was tepid. This was below our standard for the healthcare sector and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Gilead Sciences’s annualized revenue growth of 4.6% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 
We can better understand the company’s revenue dynamics by analyzing its most important segment, HIV. Over the last two years, Gilead Sciences’s HIV revenue was flat. This segment has lagged the company’s overall sales. 
This quarter, Gilead Sciences reported year-on-year revenue growth of 5.2%, and its $7.93 billion of revenue exceeded Wall Street’s estimates by 3.2%.
Looking ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges.
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Adjusted Operating Margin
Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.
Gilead Sciences has been a well-oiled machine over the last five years. It demonstrated elite profitability for a healthcare business, boasting an average adjusted operating margin of 40.8%.
Looking at the trend in its profitability, Gilead Sciences’s adjusted operating margin decreased by 1.1 percentage points over the last five years, but it rose by 5.9 percentage points on a two-year basis. Still, shareholders will want to see Gilead Sciences become more profitable in the future.
In Q4, Gilead Sciences generated an adjusted operating margin profit margin of 39%, down 2.4 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Gilead Sciences’s unimpressive 2.8% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
In Q4, Gilead Sciences reported adjusted EPS of $1.86, down from $1.90 in the same quarter last year. Despite falling year on year, this print beat analysts’ estimates by 1.9%. Over the next 12 months, Wall Street expects Gilead Sciences’s full-year EPS of $8.15 to grow 7.6%.
Key Takeaways from Gilead Sciences’s Q4 Results
We enjoyed seeing Gilead Sciences beat analysts’ revenue expectations this quarter. On the other hand, its full-year EPS guidance slightly missed and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 2.9% to $143.01 immediately after reporting.
Is Gilead Sciences an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).