Gilead raises 2026 sales forecast, widens loss outlook

Gilead Sciences, Inc. (GILD) said in an 8-K filing on Oct. 29 that non-GAAP diluted earnings per share were $2.55 for the third quarter of 2026, topping the $2.24 consensus estimate compiled by Finnhub. Revenue of $8.30 billion beat the $7.96 billion estimate.

Shares rose 2.5% in after-hours trading as of 4:35 p.m. ET, from a regular-session close of $165.44.

Gilead Sciences, Inc. is a biopharmaceutical company headquartered in Foster City, California, with operations in more than 35 countries.

“Gilead delivered an exceptional third quarter, with our strongest year-over-year base business growth in more than a decade,” Chairman and Chief Executive Officer Daniel O’Day said.

Here’s how the company did:

• Revenue: $8.30 billion vs. $7.77 billion a year earlier, $7.96 billion expected, according to Finnhub
• Adjusted EPS: $2.55 vs. $2.47 a year earlier, $2.24 expected, according to Finnhub
• GAAP diluted EPS: $1.94 vs. $2.43 a year earlier

Product sales rose 13% to $8.3 billion from $7.35 billion a year earlier. Royalty, contract and other revenues fell, as a prior-year sale of intellectual property did not repeat.

GAAP net income was $2.43 billion, down from $3.05 billion a year earlier. The company said the decrease was driven mainly by net losses from equity securities this year, compared with net gains a year earlier, along with higher operating expenses and higher income tax expense.

Net income has fallen in each of the last three quarters, from $3.05 billion in the third quarter of 2025 to a loss of $10.50 billion in the second quarter of 2026, according to its SEC filings.

2026 guidance

Gilead now expects 2026 product sales of $31.0 billion to $31.3 billion, up from $30.1 billion to $30.4 billion in its August 4 outlook. Product sales excluding Veklury are now expected at $30.7 billion to $31.0 billion, from $29.8 billion to $30.1 billion. Veklury sales are still expected at about $300 million.

The GAAP diluted loss per share forecast is now $4.40 to $4.05, from $3.75 to $3.40. The non-GAAP forecast is a loss of $1.20 to 85 cents per share, from a loss of 65 cents to 30 cents.

The company said the guidance includes about $9.88 per share from acquired in-process research and development charges of $12.4 billion. Those charges relate to the Arcellx, Tubulis, Ouro Medicines and PepStar transactions.

Segment results

HIV product sales rose 18% to $6.2 billion. Biktarvy sales rose 10% to $4.1 billion, and Descovy sales rose 49% to $1.0 billion.

Liver disease sales rose 13% to $927 million. Trodelvy sales rose 42% to $506 million. Veklury sales fell 69% to $86 million, and Cell Therapy sales fell 18% to $355 million.

In the quarter, Gilead received FDA approval for Bixlenvo, an HIV treatment. It also agreed to acquire PepStar Therapeutics Limited’s oral IL-23R inhibitor program, with closing subject to customary conditions. The company said the Centers for Medicare and Medicaid Services set a Maximum Fair Price for Biktarvy under Medicare, effective Jan. 1, 2028.

Costs and charges

Research and development expenses rose to $1.6 billion from $1.3 billion a year earlier. Selling, general and administrative expenses rose to $1.6 billion from $1.4 billion.

Product gross margin was 81.0%, up from 78.6%. The effective tax rate was 20.7%, up from 16.2%.

Cash and capital returns

Gilead had $6.4 billion of cash, cash equivalents and marketable debt securities on Sept. 30, down from $10.6 billion on Dec. 31, 2025. Year-to-date acquisition outflows totaled $11.3 billion.

In the quarter, the company repurchased $370 million of common stock. Its board declared a quarterly dividend of 82 cents per share, payable Dec. 30 to holders of record on Dec. 15.