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With their Q4 results approaching after-market hours on Tuesday, February 10, Exelixis (EXEL - Free Report) and Gilead Sciences (GILD - Free Report) are two intriguing medical stocks to consider.
As two of the market’s better performers, Exelixis shares are up +30% in the last year, with Gilead Sciences stock soaring nearly +60%.
Correlating with their pleasant stock performances, both biotech firms are thought to have ended fiscal 2025 with high double-digit EPS growth, despite Gilead Sciences' expecting a modest dip in Q4 earnings.
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FDA Progress Fuels Sentiment for Exelixis Stock
Transitioning from a single-product biotech into a multi-asset oncology company, Exelixis received FDA acceptance this month for a New Drug Application (NDA) for a combination therapy of its drugs zanzalintinib and atezolizumab, targeting metastatic colorectal cancer.
The filing is backed by stellar phase 3 data showing a statistically significant overall survival benefit versus Bayer’s (BAYRY - Free Report) regorafenib and expands Exelixis’ reach beyond its flagship cancer cell blocking drug cabozantinib into a broader solid-tumor franchise.
Investors love late-stage oncology wins, especially when they open new revenue streams, with Exelixis’ Q4 sales thought to have increased by 3% year over year to $584.68 million. Even better, Exelixis’ Q4 EPS is expected to be up 40% to $0.77 compared to $0.55 a share in the prior year quarter.
Plus, Exelixis has surpassed the Zacks EPS Consensus for six consecutive quarters, posting a very impressive average earnings surprise of 21.39% in its last four quarterly reports.
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Gilead’s Portfolio Durability & Pipeline Optimism
Notably, Gilead’s HIV franchise, especially Biktarvy, one of the most prescribed HIV regimens, has remained its biggest growth engine. Analysts have highlighted Biktarvy as the company’s primary long-term driver, supporting a “wide moat” for the business.
Furthermore, even modest growth in this segment is meaningful because HIV therapies generate high margins and require relatively low commercial overhead. Also fueling investor sentiment is a robust R&D pipeline, including oncology and virology programs, with Gilead CEO Daniel O’Day recently stating the company has the most robust drug pipeline it has ever had.
Gilead’s Q4 sales are expected to be virtually flat at $7.57 billion, with quarterly EPS expected to dip 3% to $1.83. Still, Gilead has surpassed earnings expectations in three of its last four quarterly reports, with an average EPS surprise of 7.8%.
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Bottom Line
Rounding out fiscal 2025, Exelixis' annual EPS is expected to increase 48% to $2.96, with Gilead Sciences' bottom line thought to have stretched 76% to $8.14 per share.
That said, Exelixis is experiencing a more compelling trend of EPS revisions and trades at a very attractive 12X forward earnings multiple, with Gilead Sciences at 17X, but still at a slight discount to their Zacks Medical-Biomedical and Genetics Industry average.
Ahead of their Q4 reports, Exelixis stock sports a Zacks Rank #1 (Strong Buy), with Gilead Sciences shares landing a Zacks Rank #3 (Hold).
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