Gilead Sciences, Inc.

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Bullish +65

Gilead Sciences (GILD) Q3 2026 Earnings

Earnings report Guidance raised AI-generated analysis

πŸ“ˆ Gilead reported Q3 2026 non-GAAP EPS of $2.55, beating the $2.21 consensus estimate by 15.6% and extending a six-quarter run of exceeding analyst expectations.

πŸ’° Revenue reached $8.3 billion, topping the $7.8 billion estimate by 6.32% and rising 6.8% year over year driven by strong HIV franchise performance.

πŸ”¬ HIV sales surged 18% to drive overall growth, with Biktarvy up 10% and prevention revenues nearly doubling due to the rapid commercial ramp of Yeztugo.

πŸ“Š Product sales excluding Veklury increased 16% to $8.20 billion, fueled by higher average realized prices and favorable inventory dynamics across key assets.

πŸš€ Gilead raised full-year 2026 product sales guidance to $31.0–$31.3 billion, a cumulative increase of $1.60 billion since the start of the year.

βš–οΈ Product gross margin expanded to 81.0% non-GAAP following the expiration of a royalty-related obligation, improving profitability on core products.

πŸ“‰ GAAP diluted EPS declined to $1.94 from the prior year due to net losses from equity securities and higher tax rates, masking underlying operational strength.

πŸ’Έ Significant acquired IPR&D charges of $12.4 billion are included in guidance, resulting in a projected GAAP diluted loss of $(4.40)–$(4.05) per share for the full year.

πŸ“‰ Veklury revenues dropped 69% to approximately $300 million as expected due to lower COVID-19 hospitalizations, though guidance remains unchanged at this level.

⚠️ The Biktarvy Medicare Maximum Fair Price is scheduled to affect revenue starting January 1, 2028, potentially impacting future HIV franchise growth.

Bullish Signals
  • Gilead delivered a standout Q3 with non-GAAP EPS of $2.55, beating estimates by 15.6% and extending a six-quarter streak of exceeding analyst expectations.
  • Revenue of $8.3 billion surpassed the $7.8 billion consensus, rising 6.8% year over year driven by an 18% surge in HIV sales.
  • The twice-yearly lenacapavir PrEP product Yeztugo rapidly ramped to generate $305 million, a near-doubling of prevention revenues compared to the prior year.
  • Product sales excluding Veklury grew 16% to $8.20 billion, fueled by higher average realized prices and strong demand for Biktarvy and Descovy.
  • Gilead raised full-year 2026 product sales guidance to $31.0–$31.3 billion, reflecting confidence in its core business momentum.
  • Product gross margin expanded to 81.0% non-GAAP following the expiration of a royalty-related obligation, enhancing profitability on existing assets.
Risk Factors
  • GAAP diluted EPS fell to $1.94 from the prior year due to net losses from equity securities and higher operating expenses.
  • Significant acquired IPR&D charges of $12.4 billion weigh heavily on per-share metrics, resulting in a projected full-year GAAP loss of $(4.40)–$(4.05).
  • Cell therapy revenues declined 18% year over year due to competitive headwinds in the sector.
  • Veklury revenues dropped 69% to approximately $300 million as lower COVID-19 hospitalizations reduced demand for the antiviral treatment.
Full Analysis
Gilead Sciences reported third-quarter fiscal 2026 earnings on October 29, 2026, significantly beating analyst expectations with non-GAAP EPS of $2.55 versus a consensus of $2.21 and revenue of $8.3 billion against an estimate of $7.8 billion. This performance extended the company's streak of exceeding EPS estimates to six consecutive quarters, driven primarily by robust growth in its HIV franchise where product sales excluding Veklury surged 16% year-over-year. The standout quarter was fueled by an 18% increase in HIV sales led by the blockbuster drug Biktarvy and a near-doubling of prevention revenues. The twice-yearly lenacapavir PrEP product, Yeztugo, rapidly ramped up to generate $305 million compared to just $39 million a year earlier. Other segments showed mixed results, with liver disease sales rising 13% due to Livdelzi demand and pricing, while cell therapy revenues declined 18% amid competitive headwinds. Despite the strong operational performance, GAAP diluted EPS fell to $1.94 from the prior year due to net losses on equity securities and higher operating expenses. Gilead raised its full-year 2026 product sales guidance to a range of $31.0 billion to $31.3 billion, reflecting confidence in its core business despite significant acquired IPR&D charges totaling $12.4 billion that weigh heavily on per-share metrics.