Key Highlights
- First-quarter revenue reached $6.96 billion, surpassing analyst estimates of $6.91 billion.
- Earnings per share on an adjusted basis hit $2.03, exceeding the $1.91 consensus.
- Annual EPS outlook revised to reflect a loss of $0.65–$1.05, compared to previous projections of $8.45–$8.85 in profit.
- Charges of $11.5 billion related to in-process research and development from recent acquisitions drove the revised outlook.
- Shares declined approximately 2% during extended trading hours and traded down 1% at $132.60 in premarket Friday.
Gilead Sciences delivered first-quarter results that exceeded analyst expectations, yet shares moved lower following the announcement. The primary factor behind the decline: a substantial change to annual earnings projections that surprised market participants.
Shares retreated nearly 2% during after-hours trading Wednesday, continuing their descent with a 1% decline to $132.60 ahead of Friday’s opening bell.
The biopharmaceutical company reported first-quarter revenue of $6.96 billion, topping the Street consensus of $6.91 billion. Adjusted earnings per share reached $2.03, outperforming the $1.91 estimate from FactSet-polled analysts.
Following these quarterly results, Gilead elevated its annual revenue guidance to a range of $30 billion–$30.4 billion, representing an increase from the previous bracket of $29.6 billion–$30 billion.
The earnings per share outlook, however, presented a contrasting narrative.
Management now anticipates a full-year adjusted loss ranging from $0.65 to $1.05 per share. This represents a significant departure from earlier guidance calling for earnings of $8.45 to $8.85. The Street had been modeling $8.65.
The company attributed this revision to $11.5 billion in charges for in-process research and development, combined with incremental financing expenses stemming from multiple recent acquisitions.
HIV Franchise Drives Quarterly Performance
Biktarvy, Gilead’s leading HIV treatment, delivered another strong performance. Revenue climbed 8% to $3.4 billion, representing nearly half of the company’s total quarterly sales. The complete HIV product portfolio demonstrated 10% growth compared to the prior year.
Gilead also increased its revenue projection for Yeztugo, its twice-daily injectable HIV prevention therapy, to $1 billion — a substantial increase from the earlier $200 million estimate.
Several products faced headwinds. Veklury, the company’s COVID-19 antiviral therapy, experienced a 52% sales decline to $144 million, which management linked to reduced COVID-19 hospitalization rates.
Epclusa, the hepatitis C therapy, generated $283 million compared to $346 million in the year-ago quarter. The cell therapy product line also weakened, declining roughly 12% to $407 million from $464 million.
When excluding Veklury from the calculation, total product sales increased 8% to $6.8 billion.
Recent Acquisitions Drive Guidance Adjustment
Gilead has pursued an active acquisition strategy throughout 2026. February saw the company announce plans to acquire Arcellx for $7.8 billion. The companies had previously collaborated on developing anitocabtagene autoleucel before the acquisition agreement.
Late in March, Gilead reached an agreement to purchase privately held Ouro Medicine, adding depth to its autoimmune disease pipeline. The following month brought another transaction with Tubulis GmbH, broadening the company’s antibody-drug conjugate platform.
The $11.5 billion IPR&D charge associated with these transactions accounts for the substantial shift in EPS guidance.
Gilead’s market capitalization stands at roughly $164.57 billion. The stock currently trades at a price-to-earnings ratio of 19.8x. Company insiders offloaded $10.6 million worth of shares during the past three months, while no insider purchases were recorded in that timeframe.
