Gilead Sciences (NASDAQ:GILD) posted stronger-than-expected first-quarter earnings, but a revenue shortfall and disappointing performance in its oncology division led to a more than 3% drop in its share price during premarket trading on Friday.

The company reported adjusted earnings of $1.81 per share, edging past analyst expectations of $1.77. However, revenue came in at $6.67 billion, falling short of the $6.78 billion consensus estimate.

HIV therapies, the company’s primary revenue driver, posted 6% year-over-year growth to $4.6 billion. Within that, flagship drug Biktarvy rose 7% from a year ago to $3.1 billion. Still, total HIV sales were down 16% from the previous quarter, reflecting seasonal patterns and inventory dynamics.

Gilead’s oncology segment struggled in the quarter. Trodelvy, its key cancer treatment, generated $293 million—well below expectations of $362 million—due to pricing pressure and inventory adjustments. Cell therapy revenue also declined 3% to $464 million, impacted by increased competition in the U.S. market.

Despite the revenue miss, Gilead maintained its full-year 2025 guidance, projecting adjusted EPS between $7.70 and $8.10 and revenue in the range of $28.2 billion to $28.6 billion. However, the revenue target remains slightly below analyst forecasts, adding to investor caution.