Bernstein SocGen Group announced an increase in its price target for Gilead Sciences (NASDAQ:GILD) to $160.00 from $135.00 and kept an Outperform rating on the shares.
The upgrade followed Gilead’s after-market release of fourth-quarter results on Tuesday. The company reported revenue of $7.93 billion for the quarter, a figure cited as 3.0% above a $7.70 billion consensus estimate. Gilead also disclosed adjusted earnings per share of $1.86, which Bernstein noted beat consensus expectations of $1.83 by 1.6%.
In its fiscal year 2026 outlook, Gilead projected product revenue of $26.0 billion to $30.0 billion, a range the report described as approximately 1.6% below the consensus midpoint of $30.2 billion. The company set an adjusted EPS guidance range of $8.40 to $8.80, which is slightly under the consensus estimate of $8.76 by about 1.2% at the midpoint.
Despite guidance that came in below consensus midpoints, Bernstein conveyed an increased conviction in potential upside for Gilead’s shares. The brokerage attributed its reassessment to details presented in Gilead’s earnings materials and insights gained during a follow-up call with the company’s executives.
Bernstein’s maintained Outperform rating signals continued optimism about the company’s medium-term prospects even as management issued relatively conservative guidance for fiscal 2026.
Other brokerages reacted to the same quarterly release and commentary from management. One firm raised its price objective to $160 while maintaining an Outperform stance, citing strength in Gilead’s HIV business. Another raised its target to $162 and highlighted strong demand in the HIV franchise. A separate shop lifted its target to $170 and pointed to a notable increase in product sales, which it reported rose 8% quarter-over-quarter and 5% year-over-year. Meanwhile, Goldman Sachs retained a Neutral rating with a $125 price target.
The company’s fourth-quarter performance was also framed in a slightly different set of consensus comparisons in some reports: Gilead’s $1.86 adjusted EPS was described as topping a $1.81 Wall Street estimate, and the $7.93 billion revenue tally was presented as above a $7.69 billion analyst expectation. Those accounts attributed the better-than-expected top-line and bottom-line results to robust sales activity in the HIV and oncology segments.
Taken together, the post-earnings analyst responses show a generally constructive reception among several brokerages, with multiple firms raising price targets and expressing confidence in Gilead’s core franchises despite the company’s cautious guidance for the coming fiscal year.
Summary
Bernstein raised its Gilead price target to $160 and kept an Outperform rating after the company reported fourth-quarter revenue and adjusted EPS that exceeded certain consensus estimates. Gilead’s fiscal 2026 guidance came in slightly below consensus midpoints for product revenue and adjusted EPS, but Bernstein cited information from the earnings presentation and a follow-up call as the basis for greater confidence in potential upside. Several other brokerages also adjusted their price targets following the results.
Key points
- Bernstein SocGen Group raised its price target on Gilead to $160.00 from $135.00 and retained an Outperform rating.
- Gilead reported Q4 revenue of $7.93 billion and adjusted EPS of $1.86, figures presented as beating some consensus estimates.
- Fiscal 2026 guidance projects product revenue of $26.0 billion to $30.0 billion and adjusted EPS of $8.40 to $8.80 - both ranges sit slightly below consensus midpoints noted in reports.
Sectors impacted
- Healthcare - pharmaceutical and biotech companies tied to infectious disease and oncology therapies.
- Equity markets - analyst revisions and guidance comparisons can influence investor sentiment toward large-cap pharma stocks.
Risks and uncertainties
- Guidance risk - Gilead’s fiscal 2026 product revenue and adjusted EPS guidance ranges are slightly below consensus midpoints, which could affect market expectations.
- Analyst divergence - differing consensus figures cited across reports create uncertainty about the baseline expectations that Gilead exceeded, complicating comparability.
- Concentration risk - the reported strength in HIV and oncology sales is central to recent upside; fluctuations in demand for these franchises could influence results and valuations.