What Happened?
Shares of biopharmaceutical company Gilead Sciences (NASDAQ: GILD) jumped 8.7% in the morning session after the company reported second-quarter 2025 results that topped Wall Street's expectations and raised its full-year financial guidance. The biopharmaceutical company posted revenue of $7.08 billion and adjusted earnings per share (EPS) of $2.01, beating analysts' consensus estimates for both figures. Buoyed by the results, Gilead raised its full-year adjusted EPS guidance to a midpoint of $8.10. While it also slightly lifted its full-year revenue guidance to $28.5 billion, this figure remained just below what analysts were projecting. Investors appeared to focus on the earnings beat and the improved profit outlook for the year, which outweighed the more cautious signal on revenue.
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What Is The Market Telling Us
Gilead Sciences’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 3% on the news that its 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 treatment for use as pre-exposure prophylaxis (PrEP), a method to prevent HIV infection. This positive opinion was a significant step toward making the drug available across the European Union. Following the news, investment firm Needham upgraded its rating on Gilead's stock from 'Hold' to 'Buy' and set a price target of $133. The firm expressed confidence that lenacapavir could become a major sales driver, potentially contributing billions to revenue.
Gilead Sciences is up 30.7% since the beginning of the year, and at $120.13 per share, has set a new 52-week high. Investors who bought $1,000 worth of Gilead Sciences’s shares 5 years ago would now be looking at an investment worth $1,753.
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