Shares of biopharma giant Gilead Sciences (NASDAQ: GILD) jumped 8.7% during morning trading after the company reported strong second-quarter 2025 results that beat Wall Street expectations and raised its full-year outlook. Gilead posted revenue of $7.08 billion and adjusted earnings per share (EPS) of $2.01, both exceeding analyst consensus estimates.
Following the upbeat earnings, Gilead raised its full-year adjusted EPS guidance to a midpoint of $8.10. The company also nudged up its full-year revenue guidance slightly to $28.5 billion, though this figure remained just under analysts’ forecasts. Investors seemed to prioritize the earnings beat and improved profit outlook over the more cautious revenue forecast.
Gilead Sciences’s shares typically don’t show extreme volatility, with only three moves greater than 5% in the past year. In that context, today’s jump signals that the market views this news as significant, although it may not dramatically alter the overall perception of the company’s fundamentals.
The previous notable move came just two weeks ago, when the stock climbed 3% after Gilead’s long-acting HIV prevention injection, lenacapavir, received a recommendation for approval from a key European regulatory committee. The European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) endorsed the twice-yearly injection for pre-exposure prophylaxis (PrEP), a critical step toward broader availability across the European Union.
Following this regulatory milestone, investment firm Needham upgraded its rating on Gilead from “Hold” to “Buy,” setting a price target of $133. Needham cited lenacapavir’s potential to become a major revenue driver, possibly adding billions in sales.
As of 2023, 39.9 million people globally were living with HIV, newly infecting more than 1 million people a year.
Even after decades of research, there is no cure for the disease HIV causes, AIDS. But lenacapavir, born out of research on HIV’s cone-shaped capsid protein, gets close, almost completely preventing new HIV infections from occurring. The drug protects people for six months with each shot.
Gilead shares have surged 30.7% year-to-date and recently hit a new 52-week high at $120.13 per share. An investor who put $1,000 into Gilead five years ago would now be holding shares worth approximately $1,753.
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