Key Highlights
- Gilead surpassed Q1 revenue projections with $6.96 billion versus the anticipated $6.91 billion.
- Earnings per share (adjusted) reached $2.03, exceeding analyst estimates of $1.91.
- Annual EPS outlook revised to a loss range of $0.65–$1.05, a stark decline from previous guidance of $8.45–$8.85.
- The downward revision stems from $11.5 billion in IPR&D expenses related to multiple acquisitions.
- GILD shares declined approximately 2% during after-hours sessions and traded 1% lower at $132.60 in Friday’s premarket.
Gilead Sciences exceeded first-quarter expectations on both revenue and earnings lines, yet shares retreated as investors digested a substantial downward adjustment to annual profit forecasts.
Shares declined nearly 2% in Wednesday’s extended trading session and continued sliding 1% to $132.60 during Friday’s premarket activity.
The biopharmaceutical company reported first-quarter revenue of $6.96 billion, slightly surpassing consensus projections of $6.91 billion. Adjusted earnings per share registered at $2.03, comfortably above the $1.91 estimate compiled by analysts surveyed through FactSet.
Based on these quarterly results, Gilead elevated its annual revenue projection to $30 billion–$30.4 billion, an increase from the previous range of $29.6 billion–$30 billion.
However, the earnings outlook presented a starkly contrasting narrative.
Management now anticipates a full-year adjusted loss between $0.65 and $1.05 per share—a dramatic turnaround from earlier guidance projecting earnings of $8.45 to $8.85. Wall Street consensus had centered around $8.65.
The company attributed this significant adjustment to $11.5 billion in in-process research and development (IPR&D) expenses, combined with heightened financing costs associated with its recent acquisition strategy.
HIV Franchise Drives Revenue Performance
Biktarvy, Gilead’s leading HIV treatment, continued its strong performance with sales climbing 8% to $3.4 billion, representing nearly half of consolidated revenue. The company’s complete HIV segment demonstrated 10% year-over-year expansion.
Management also increased Yeztugo’s revenue projection—their twice-daily HIV prevention injectable—to $1 billion, a substantial upgrade from the prior $200 million estimate.
Some products underperformed relative to expectations. Veklury, the company’s COVID-19 therapeutic, experienced a 52% decline to $144 million in sales, which management connected to reduced COVID-19 hospitalization trends.
Epclusa, treating hepatitis C, generated $283 million compared to $346 million during the comparable prior-year period. The cell therapy segment also weakened, declining approximately 12% to $407 million from $464 million.
Excluding Veklury contributions, product revenue increased 8% to $6.8 billion.
Aggressive M&A Strategy Behind Guidance Reduction
Gilead has pursued an active acquisition strategy throughout 2026. In February, the company announced plans to acquire Arcellx for $7.8 billion. This transaction builds upon an existing partnership with the Maryland-headquartered biotech focused on co-developing anitocabtagene autoleucel.
Late in March, Gilead reached an agreement to purchase private company Ouro Medicine, aimed at bolstering its autoimmune disease pipeline. The following month saw another deal announcement involving Tubulis GmbH, designed to enhance its antibody-drug conjugate platform.
The $11.5 billion IPR&D expense associated with these transactions represents the primary factor behind the earnings guidance reversal.
Gilead’s current market capitalization stands at approximately $164.57 billion. The stock trades at a price-to-earnings multiple of 19.8x. Corporate insiders disposed of $10.6 million worth of shares during the past three months, with no insider purchases recorded throughout that timeframe.
