Wolfe Research has raised its price target on Gilead Sciences (NASDAQ:GILD) to $170.00 from $155.00 while continuing to rate the stock Outperform. The new target sits above the company’s most recent share price of $155.80 and follows strong equity performance for the stock, which has returned roughly 55% over the past year and is trading near its 52-week high of $157.29, according to the InvestingPro data cited in company commentary.
Drivers cited by the research firm
Wolfe Research referenced robust results across Gilead’s HIV franchise in 2025 as central to its target increase. The firm highlighted a 31% year-over-year rise in sales of Descovy and noted that the Yeztugo launch contributed $150 million in sales. Those product dynamics are consistent with Gilead’s trailing twelve-month revenue of $29.44 billion and a reported gross profit margin close to 79%.
For 2026, Gilead has guided to about 6% year-over-year growth in its HIV business, a pace the company said is consistent with 2025 despite including a full year of Yeztugo sales and the potential second-half introduction of BIC/LEN, a once-daily oral regimen. Analyst models referenced in the coverage expect Gilead to remain profitable in fiscal 2026, with an EPS forecast of $8.76.
Policy headwinds and product mix
Wolfe Research reported that company management called out a roughly 2% headwind to HIV business growth stemming from U.S. policy effects, including the expiration of certain ACA subsidies and drug pricing concessions. In follow-up discussions after an earnings call, management emphasized that these policy impacts would mainly affect the company’s legacy HIV portfolio while maintaining expectations for continued strong growth in key current products such as Biktarvy, Descovy, and Yeztugo. Management has guided Yeztugo to $800 million in sales.
Recent financial results and peer reactions
Gilead’s most recent quarterly report showed fourth-quarter revenue of $7.93 billion, ahead of the $7.70 billion consensus, and adjusted EPS of $1.86, topping expectations of $1.83. The company said the results were driven primarily by performance in its HIV and oncology businesses.
Following the quarterly release and the commentary on product momentum, a number of financial firms adjusted their price targets for Gilead. Truist Securities raised its target to $152 while keeping a Buy rating; Bernstein lifted its target to $160 with an Outperform stance; BMO Capital also moved to $160; Bank of America raised its target to $162; and Goldman Sachs retained a Neutral rating with a $125 target.
Market context and outlook
Wolfe Research’s target increase reflects its assessment that recent product-level strength and the company’s guidance support greater upside from current share levels. Analysts’ expectations for 2026 profitability and the company’s product roadmap, including the potential BIC/LEN launch, factor into that view. At the same time, management-identified policy headwinds and the concentration of effects on legacy products remain elements firms say investors should monitor.