Overview
Gilead Sciences
GILD · NASDAQQ3 2026Healthcare · Biotechnology
Since the Report − 0.5%
Revenue grew 6.8% year over year, EPS beat the estimate by 16.4%; the stock rose 4.1% in its first reaction.
- RevenueQ3
- $8.30B
- ▲ 6.8% YoY · 6.4% Above Estimate
- EPSAdjusted
- $2.55
- Estimate $2.19 · 16.4% Beat
Verdict
BUYGilead reported third-quarter revenue of $8.30B and adjusted EPS of $2.55, beating the earnings estimate by 16%. HIV sales grew 18%, and the company raised its full-year product sales guidance. The stock rose 4%; the measure to watch next is the impact of the Biktarvy price cut that starts in 2028.
Close on Report DayOct 29
$172.36▲ 4.1%Report-Day Move
- Market Cap(Today)
- ≈ $213 B
- 1Y Return(At Report)
- + 44%
- Net Margin(Trailing 12M)
- − 10.6%
Earnings Summary
In 30 Seconds- Revenue of $8.30B beat estimates by 6.4%, and adjusted EPS of $2.55 beat by 16.4%.
- HIV sales grew 18%; the company raised full-year product sales guidance to $31.0-31.3B.
- The stock rose 4.1% intraday; the 2028 Biktarvy price cut did not hold back the reaction.
The Numbers
HIV Revenue
$6.25B
▲ 18% YoY · 75% of Product Sales
Yeztugo Sales
$305M
▲ 31% QoQ · Last Year $39M
2026 Product Sales Guidance
$31.0–31.3B
Prior 30.1 – 30.4 · ▲ 3.0%
Stock Reaction
▲ 4.1%
Intraday 12:34 ET; Update This Evening
Quarterly Revenue ($ Billion)
7.77
Q3 25 · $7.77 B
7.93
Q4 25 · $7.93 B · QoQ + 2.0%
6.96
Q1 26 · $6.96 B · QoQ − 12.2%
7.80
Q2 26 · $7.80 B · QoQ + 12.1%
8.30
Q3 26 · $8.30 B · QoQ + 6.4% · YoY + 6.8%
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
Q4 2026 Company Guidance
- Full-Year Product Sales31.0 – 31.3 billion31.0 billion31.3 billion31.0 – 31.3 billion
Midpoint 31.15 · Market Expectation 30.77 · Prior 30.1–30.41.3% Above Estimate ▲
- Product Sales ex-Veklury30.7 – 31.0 billion30.7 billion31.0 billion30.7 – 31.0 billion
Prior 29.8–30.1Raised 3.0% ▲
- Full-Year Adjusted EPS-1.20 – -0.85 $-1.20 $-0.85 $
Includes ~$9.88/Share Acquired R&D · Prior −0.65 / −0.30Midpoint Down $0.55 ▼
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±65% around the midpoint.
Segment and KPI Data
Revenue by Segment
- HIV$6.25 BShare 75.4%▲ 18.0% YoY
- Liver Disease$927 MShare 11.2%▲ 13.0% YoY
- Oncology$860 MShare 10.4%▲ 9.0% YoY
Includes Trodelvy and Cell Therapy
- Other$167 MShare 2.0%▼ 9.0% YoY
- Veklury$86.0 MShare 1.0%▼ 69.0% YoY
Key Metrics
Biktarvy Sales
$4.06 B
▲ 10.0% YoYPress Release
Descovy Sales
$1.05 B
▲ 49.0% YoYPress Release
Yeztugo Sales
$305 M
Press Release
Trodelvy Sales
$506 M
▲ 42.0% YoYPress Release
Cell Therapy Sales
$355 M
▼ 18.0% YoYPress Release
Adjusted Product Gross Margin
88.1%
Press Release
Shares are computed over the segment total: $8.29 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“Gilead delivered an exceptional third quarter that highlights the strength, breadth and durability of the business. Yeztugo and Descovy for PrEP combined have 50% market share today and a $4 billion annual run rate. The price set by CMS does not reflect the value of Biktarvy.”
- 50% Share in HIV Prevention
- Biktarvy Medicare Price
- Anito-cel Approval Path
Summary and Review
Summary
Total revenue was $8.30B. That is up 6.8% year over year and 6.4% above the market expectation. Product sales grew 13%, because last year's revenue included $424M of non-product items. Adjusted EPS was $2.55 against an estimate of $2.19, a 16.4% beat. The revenue and earnings gates are open. Product sales guidance is in line with expectations. Revenue was the highest of the last five quarters.
The stock rose 2.3% after hours and 4.1% in today's session. It touched a 52-week high of $175.65 intraday. The market read this report as an HIV growth story. The new prevention drug Yeztugo sold $305M. Medicare's plan to cut the Biktarvy price in 2028 did not hold back the reaction. Several analysts raised their targets after the report. Jefferies raised its target to $185 and Needham to $200.
Score 72, view buy. The revenue and earnings gates are open, and the guidance gate is in line. That combination gives a 70-79 band. Two caveats keep the score in the lower half. Biktarvy's Medicare price will fall about 38% below list in 2028. Full-year earnings guidance also dropped because of new acquisition charges. The stock trades 6% above the average analyst target. The EPS cut stems from acquisition accounting, not from operations.
Full Review
The HIV business accelerated.
HIV sales were $6.25B, up 18% year over year. That is about 75% of product sales. The flagship Biktarvy grew 10% to $4.06B. The prevention drug Descovy rose 49% to $1.05B. Yeztugo, a new prevention drug injected twice a year, sold $305M. In the same quarter last year it sold $39M. Sequential growth was 31%. On the call, CEO Daniel O'Day said the two drugs hold 50% of the prevention market. Their annual sales run rate is $4B. HIV prevention sales nearly doubled in a year. This growth is the company's main counterweight to the 2028 Biktarvy price cut.
Other areas were mixed.
Liver disease revenue grew 13% to $927M. Oncology sold $860M, up 9%. The breast cancer drug Trodelvy grew 42% to $506M. Cell therapy, however, fell 18% to $355M. Yescarta shrank 16% and Tecartus 28%. Veklury, the pandemic-era drug, fell 69% to $86M. It is no longer large enough to move growth. Product sales excluding Veklury rose 16%. The company is clearly growing outside HIV too. But cell therapy may stay weak until the new drug anito-cel is approved. The FDA decision on anito-cel is due on December 23. Another trial of the drug is on partial clinical hold. Recovery in cell therapy thus hinges on one decision.
Margins widened, profit beat.
Adjusted product gross margin was 88.1%. A year ago it was 86.5%, a 1.6-point expansion. Adjusted operating margin was 50.2%, 0.3 points below last year's 50.5%. R&D spending rose 19% to $1.59B. Adjusted net income was $3.19B. GAAP EPS was $1.94. Adjusted earnings over the last four quarters total minus $0.31 per share. The cause is about $11.5B of acquired R&D charges booked in the second quarter. The Arcellx, Ouro and Tubulis deals created those charges. That is why the P/E ratio is not a meaningful measure right now. Acquisition charges hit accounting profit, not cash flow.
Sales guidance up, EPS guidance down.
The company raised full-year product sales guidance to $31.0-31.3B. The prior range was $30.1-30.4B. The midpoint rose 3.0% and sits 1.3% above the market expectation. Guidance excluding Veklury also rose to $30.7-31.0B. Earnings guidance, however, fell. The adjusted EPS range is now minus $1.20 to minus $0.85. The prior range was minus $0.65 to minus $0.30. The cut comes from the decision to buy PepStar's oral IL-23R program. Full-year acquired R&D charges now total about $12.4B. That equals about $9.88 per share. The market expectation was minus $0.45, but it did not yet include the PepStar deal.
One measure: Biktarvy's future.
From January 1, 2028, Medicare will pay $2,600 for a 30-day supply of Biktarvy. That is about 38% below list price. The CFO expects a revenue loss of about $1.5B in 2028. He still expects 2028 HIV sales to exceed 2027. Next quarter, look at one line: Yeztugo sales. This quarter they were $305M. If they top $400M a quarter, new drugs are offsetting the Biktarvy loss early. If they stay below $350M, the 2028 risk will weigh more on the price. You can refresh how to read earnings day here. The company will give formal 2028 guidance in early 2028. Until then, the HIV growth rate is the key gauge each quarter.
Looking Ahead
Strengths and Risks
6 Strengths · 6 RisksStrengths
6- HIV sales grew 18% year over year to $6.25B.
- The new prevention drug Yeztugo sold $305M, up 31% sequentially.
- Adjusted EPS of $2.55 beat the estimate by 16.4%.
- Full-year product sales guidance was raised to $31.0-31.3B.
- Adjusted product gross margin widened 1.6 points to 88.1%.
- Trodelvy sales rose 42% to $506M.
Risks
6- Biktarvy's Medicare price will fall about 38% below list in 2028.
- The company expects a revenue loss of about $1.5B in 2028 from that price.
- Cell therapy sales fell 18% year over year.
- Full-year EPS guidance dropped to minus $1.20 to minus $0.85 on new acquisition charges.
- At $172.36, the stock trades 6% above the $162 average analyst target.
- A monthly oral Biktarvy candidate was placed on clinical hold.
What to Watch
5- December 23, 2026An FDA decision is expected for the multiple myeloma cell therapy anito-cel.
- Late 2026A filing for the weekly oral islatravir and lenacapavir combination will be made.
- February 2027Q4 earnings will bring 2027 guidance.
- 2027Emvistegrast will enter a Phase 3 trial in ulcerative colitis.
- January 1, 2028Biktarvy's new Medicare price takes effect.
Upcoming Earnings
To Understand This