Needham on Wednesday increased its 12-month price target for Gilead Sciences (NASDAQ:GILD) to $170.00 from $140.00 and kept a Buy rating following the company’s fourth-quarter 2025 earnings disclosure.
Gilead reported total product sales of $7.90 billion for Q4 2025, an 8% rise quarter-over-quarter and a 5% increase year-over-year. That result topped both Needham’s and consensus projections of $7.64 billion, according to the company's reported figures.
The company’s HIV product portfolio - notably Biktarvy and Descovy - was cited as the primary driver of the better-than-expected top-line performance. On the profitability side, non-GAAP earnings per share came in at $1.86, exceeding Needham’s projection of $1.82 and the consensus figure of $1.81.
Gilead provided initial guidance for fiscal 2026 product sales in a range of $29.6 billion to $30.0 billion, which sits squarely with the consensus estimate of $29.8 billion. Management also expects the HIV franchise to grow 6% year-over-year in fiscal 2026, matching the growth rate achieved in fiscal 2025.
Needham highlighted a series of factors that underpin its positive stance on the shares: demand-led revenue growth within the HIV franchise, notable expansion in the HIV PrEP segment which grew 13% year-over-year in Q4 2025, and better operating expense discipline that is contributing to improving margin trends.
Separately, additional company disclosures for the quarter also showed an earnings beat and revenue upside by alternate reported figures: EPS of $1.86 was slightly above a projected $1.85, and revenue was reported at $7.93 billion versus an anticipated $7.68 billion. Those figures were characterized as a positive earnings surprise for the quarter.
Despite the reported beats, Gilead’s shares declined in aftermarket trading. The company’s financial performance and evolving franchise trends remain under close observation by investors and industry analysts.
Context and takeaways
- Analyst action - Needham raised its price target to $170 from $140 and retained a Buy rating.
- Revenue and EPS - Total product sales of $7.90 billion and non-GAAP EPS of $1.86 beat Needham and consensus estimates; alternate reported revenue and EPS figures also showed upside versus other projections.
- Guidance and growth - Gilead issued 2026 product sales guidance of $29.6-30.0 billion and expects the HIV franchise to grow 6% year-over-year in fiscal 2026, consistent with its 2025 performance.
The combination of stronger-than-expected HIV sales, PrEP market momentum, and tighter operating discipline formed the basis for Needham’s bullish revision. Market reaction was mixed, however, as the stock moved lower in aftermarket trading despite the reported beats.