Goldman Sachs has reaffirmed a Neutral rating on Gilead Sciences (NASDAQ:GILD) and kept its price target at $125 following the company’s fourth-quarter financial report. The stock was trading at $153.16, a level noted to be near its 52-week high of $153.13, and InvestingPro data categorized the shares as fairly valued based on its Fair Value assessment.
Gilead’s reported non-GAAP earnings per share for the quarter were $1.86, slightly ahead of consensus estimates of $1.81. Revenue in the quarter totaled $7.93 billion, above analysts’ expectations of $7.69 billion. The company attributed the stronger-than-anticipated results in part to elevated sales in its HIV and oncology franchises.
On a corporate scale, Gilead carries a market capitalization of $189.8 billion and continues to register strong financial metrics, reflected in an InvestingPro overall financial health score labeled as "GREAT."
Guidance and product-level outlook
Along with quarterly results, Gilead released its initial guidance for fiscal year 2026. The company expects the HIV segment to grow by 6% year over year, a projection that assumes roughly 2% of policy-related headwinds. In contrast, management forecast a 10% decline in the cell therapy business, attributing the drop to ongoing competitive pressures.
Gilead provided specific expectations for Yeztugo, projecting roughly $800 million in sales for the product. That figure sits below the consensus estimate of $922 million. Management said the Yeztugo outlook reflects anticipated steady growth in new patient starts and noted that the product currently has about 90% coverage, while also taking a conservative view on patient adherence.
Pipeline milestones and business development
Goldman Sachs highlighted several near-term milestones that investors will be watching. These include initial Phase 3 data for a weekly oral HIV treatment developed in partnership with Merck, expected in the first half of 2026, and plans to launch anito-cel for multiple myeloma in the second half of 2026. The bank also cited Gilead’s continued business development activities as a material element of the company’s outlook.
Market reaction and analyst commentary
Gilead’s fourth-quarter financials also outpaced some Wall Street expectations in separate reporting. The company reported EPS of $1.86, marginally above an alternate consensus figure of $1.85, and revenue of $7.93 billion versus another consensus estimate of $7.68 billion. Robust HIV sales underpinned an 8% increase in total product sales quarter over quarter and a 5% year-over-year gain.
Several analysts adjusted their price targets after the results. Needham raised its target to $170, pointing to the strength in HIV sales. BofA Securities moved its price target to $162, noting that product revenues beat consensus by about 4%. BMO Capital increased its target to $160 and emphasized the central role of the HIV franchise in Gilead’s investment case. These revisions indicate positive sentiment among some sell-side analysts in response to the quarterly performance.
Overall, the quarter delivered a mix of stronger-than-expected results and forward-looking guidance that balances growth in core HIV products against headwinds in cell therapy and conservatism around Yeztugo uptake. Investors and market participants will likely monitor upcoming clinical readouts and the planned launch of anito-cel as near-term catalysts for the stock.