Sep 30, 2023

Gilead Sciences Q3 2023 Earnings Report

Gilead Sciences' financial performance remained stable with growth in oncology and HIV sales offsetting declines in Veklury and HCV product sales.

Key Takeaways

Gilead Sciences reported flat total revenue of $7.1 billion for Q3 2023 compared to the same period in 2022. Growth in Oncology and HIV sales was offset by lower Veklury and chronic hepatitis C virus (HCV) product sales. Diluted EPS increased to $1.73, and non-GAAP diluted EPS increased to $2.29.

Total revenue was flat at $7.1 billion compared to Q3 2022.

Product sales excluding Veklury increased by 5% year-over-year to $6.4 billion.

Oncology sales increased by 33% year-over-year to $769 million.

Diluted EPS increased to $1.73, and non-GAAP diluted EPS increased to $2.29.

Total Revenue
$7.05B
Previous year: $7.04B
+0.1%
EPS
$2.29
Previous year: $1.9
+20.5%
Product gross margin
77.6%
Previous year: 80%
-3.0%
Gross Profit
$5.49B
Previous year: $5.65B
-2.9%
Cash and Equivalents
$8B
Previous year: $4.7B
+70.2%
Free Cash Flow
$1.63B
Previous year: $2.71B
-39.7%
Total Assets
$62.4B
Previous year: $62.6B
-0.3%

Gilead Sciences

Gilead Sciences

Gilead Sciences Revenue by Segment

Gilead Sciences Revenue by Geographic Location

Forward Guidance

For the full year, Gilead expects total product sales between $26.7 billion and $26.9 billion, diluted earnings per share between $4.55 and $4.75, and non-GAAP diluted earnings per share between $6.65 and $6.85.

Positive Outlook

  • Total product sales are expected to be between $26.7 billion and $26.9 billion, compared to the previous guidance of $26.3 billion and $26.7 billion.
  • Total product sales, excluding Veklury, are expected to be between $24.8 billion and $25.0 billion, compared to the previous guidance of $24.6 billion and $25.0 billion.
  • Total Veklury sales are expected to be approximately $1.9 billion, compared to the previous guidance of approximately $1.7 billion.
  • Diluted earnings per share are expected to be between $4.55 and $4.75, compared to the previous guidance of $4.50 and $4.85.
  • Non-GAAP diluted earnings per share are expected to be between $6.65 and $6.85, compared to the previous guidance of $6.45 and $6.80.

Challenges Ahead

  • Uncertainty around the duration and magnitude of the COVID-19 pandemic.
  • Gilead's ability to make progress on any of its long-term ambitions or strategic priorities laid out in its corporate strategy.
  • Gilead's ability to accelerate or sustain revenues for its virology, oncology and other programs.
  • Gilead’s ability to realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the arrangements with Arcus, Arcellx, Assembly, Epic Bio, and Tentarix
  • Patent protection and estimated loss of exclusivity for our products and product candidates.