Gilead Sciences Reports Strong Q4 2024 Earnings Growth

Gilead Sciences posted strong fourth-quarter results, exceeding expectations with adjusted EPS at $1.90 and revenue at $7.57 billion. The robust HIV portfolio contributed significantly, though declining Veklury sales present challenges.

Date: 12-02-2025

AI Rating: 7

Earnings Per Share (EPS): Gilead's adjusted EPS of $1.90 exceeded analysts' estimates of $1.74, marking a 10.5% year-over-year increase from $1.72. This positive outcome may enhance investor confidence and drive stock appreciation.

Revenue Growth: The company reported Q4 revenue of $7.57 billion, surpassing expectations of $7.15 billion and reflecting a 6.4% growth compared to Q4 2023. Such financial performance may bolster its market valuation, pending investor sentiment regarding Veklury's decline.

Profit Margins: Gilead showcased a product gross margin improved to 86.7%, indicating efficient cost management and profitability, essential factors that generally contribute to positive stock price dynamics.

Cash Flow: The company's operating cash flow reached $3.0 billion, a core indicator of liquidity and financial health, which can influence investment decisions positively.

Despite the challenges mentioned, including falling Veklury sales and increased R&D expenses, Gilead's strategic investments in its HIV and oncology segments, supported by strong product performance, indicate resilience and potential for growth. The anticipated new product launches and a well-outlined growth strategy for 2025 may further entice investors.

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