BofA Securities raised its price target on Gilead Sciences (NASDAQ:GILD) to $162.00 from $154.00 on Wednesday, while retaining a Buy rating on the shares. The firm cited stronger-than-expected product sales in the fourth quarter as the primary basis for the revision.
Gilead reported fourth-quarter product revenues of $7.90 billion, a figure that beat both BofA and consensus estimates by roughly 4% and reflected broad demand strength across its commercial portfolio. The company also reported total revenue of $7.93 billion for the period, above the forecast of $7.68 billion, and delivered earnings per share of $1.86 compared with the $1.85 estimate.
The HIV franchise was highlighted as the main driver of the quarter, with management pointing to continued strong performance from Biktarvy and Descovy and the ongoing launch of Yeztugo for HIV pre-exposure prophylaxis. Management said the majority of macro headwinds are now in the rear-view mirror and projected another year of 6% year-over-year growth for the HIV business.
Looking ahead, Gilead expects its base business to expand in the 4-5% range in 2026. The company also signaled that earnings per share will face pressure from operating expense growth, forecasting low- to mid-single-digit year-over-year increases in operating costs.
BofA reiterated a constructive stance on the HIV franchise, noting there is no near-term loss of exclusivity risk and identifying upside potential from upcoming pipeline developments. The firm incorporated the stronger revenue performance and the growth outlook into its updated valuation and price target.
Needham Capital Markets also reacted to the quarter, raising its price target on Gilead to $170 from $140 while maintaining a Buy rating. Needham attributed its upgrade to solid sales momentum in the company’s HIV segment. Gilead’s fourth-quarter product sales rose 8% sequentially and 5% year-over-year, a result that exceeded Needham’s and consensus product sales expectations of $7.64 billion.
These analyst moves follow a quarter in which Gilead outperformed expectations on both revenue and EPS, underpinned by persistent demand in its core HIV portfolio and the initial commercial uptake of new offerings. Management’s guidance and the analyst responses together underline how the company’s commercial footprint is currently shaping market expectations for growth and valuation.
Context and market implications
- Gilead’s Q4 results and subsequent price-target increases by BofA and Needham reflect investor focus on durable growth in branded HIV therapies.
- Analyst upgrades and reiterated Buy ratings indicate confidence among equity analysts in the company’s near-term commercial trajectory.
- Projected operating expense growth is a moderating factor for EPS despite top-line expansion, affecting investor earnings expectations.