Overview
Gilead Sciences announced fourth-quarter results showing adjusted earnings per share of $1.86 and revenue of $7.9 billion, both marginally ahead of consensus expectations. The results were supported by stronger-than-expected sales of its HIV medications, while the company set 2026 guidance that aligns with the low end of analysts' forecasts.
Quarterly performance details
During the quarter, sales of Yeztugo - a twice-yearly injection for HIV prevention launched in the U.S. last year - reached $96 million, surpassing the $88 million estimate tracked by LSEG. Gilead has projected Yeztugo sales of $800 million for 2026.
Biktarvy, Gilead's widely used HIV treatment, generated $4 billion in fourth-quarter sales, exceeding analyst expectations of $3.8 billion.
Corporate comments
Gilead CEO Daniel O’Day said in an interview, "Our HIV business is going from strength to strength." The company, headquartered in Foster City, California, emphasized the contribution of its HIV franchise to the quarter's results.
Outlook for 2026
Gilead provided a 2026 adjusted earnings per share range of $8.45 to $8.85. Analysts, on average, had projected $8.75 per share, a figure that sits 10 cents above Gilead's guidance midpoint. On product sales, management forecast $29.6 billion to $30.0 billion for 2026, compared with analysts' projection of $30.2 billion.
Management attributed a roughly 2% reduction in its 2026 sales growth outlook to a pricing agreement with the Trump Administration and to uncertainty about how many people will continue to carry insurance under Affordable Care Act plans now that some government subsidies have expired.
Clear summary
Gilead beat Wall Street on fourth-quarter revenue and adjusted EPS, led by Yeztugo and Biktarvy sales. Its 2026 guidance sits at or below consensus, reflecting a modest trim to sales growth tied to a government pricing agreement and uncertainty around ACA coverage.
Key points
- Yeztugo quarterly sales were $96 million, above the $88 million estimate; Gilead expects $800 million in Yeztugo sales for 2026.
- Biktarvy produced $4 billion in fourth-quarter sales, ahead of the $3.8 billion analyst estimate.
- Gilead's 2026 EPS guidance of $8.45 to $8.85 and product sales guidance of $29.6 billion to $30.0 billion are at the lower end of analyst expectations.
Risks and uncertainties
- A pricing agreement with the Trump Administration has contributed to a roughly 2% reduction in expected 2026 sales growth - a factor affecting revenue outlook in the pharmaceutical sector.
- Uncertainty about the number of people who will continue to retain insurance coverage under Affordable Care Act plans, following expiration of certain government subsidies, poses demand risk for insured-access-dependent products.
- Gilead's 2026 guidance is lower than consensus on product sales, which could influence investor expectations for biotech and healthcare equities.
Conclusion
Gilead's fourth-quarter operating results showed modest outperformance driven by its HIV franchise, but the company's 2026 financial targets are cautious and sit at the bottom of analysts' ranges. Management pointed to a specific government pricing agreement and insurance coverage uncertainty as drivers of the trimmed sales outlook.