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Gilead posted Q1 revenues of $7B, driven by HIV drugs, Trodelvy and Livdelzi growth.
GILD cut 2026 EPS guidance due to $11.5B in acquired IPR&D charges and financing costs.
Yeztugo generated $166M in Q1 sales as Gilead raised its 2026 sales outlook to $1B.
Gilead Sciences, Inc. (GILD - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $2.03, which beat the Zacks Consensus Estimate of $1.89. In the year-ago quarter, the company reported an adjusted EPS of $1.81.
The year-over-year increase was primarily driven by higher product sales and lower acquired IPR&D expenses.
Total revenues of $7 billion beat the Zacks Consensus Estimate of $6.9 billion. Revenues were up 4% year over year, driven by higher HIV, breast cancer drug Trodelvy and liver disease drug Livdelzi sales.
However, the stock is down on May 8, probably due to a reduction in annual EPS guidance for 2026 that did not impress the Wall Street.
Gilead’s shares have gained 9.2% year to date against the industry's decline of 0.2%.
Image Source: Zacks Investment Research
HIV, Trodelvy and Livdelzi Power GILD’s Q1 Results
Total revenues comprise product sales and royalty, contract and other revenues.
Product sales increased 5% year over year to $6.9 billion. Excluding Veklury (remdesivir for COVID 19), product sales increased 8% to $6.8 billion.
HIV product sales grew 10% year over year to $5 billion, driven by higher demand. The figure beat both the Zacks Consensus Estimate and our model estimate of $4.8 billion.
Flagship HIV therapy Biktarvy’s sales increased 7% year over year to $3.4 billion, driven by higher demand and average realized price. The reported number beat both the Zacks Consensus Estimate and our model estimate of $3.3 billion.
Per GILD, Biktarvy accounts for over 52% share of the HIV treatment market in the United States.
Descovy (FTC 200 mg/TAF 25 mg) sales increased 38% year over year to $807 million, driven by higher average realized price and increased demand for HIV prevention. The reported number comfortably beat the Zacks Consensus Estimate of $632 million and our model estimate of $594 million.
Incremental sales of newly approved Yeztugo (lenacapavir) for pre-exposure prophylaxis (PrEP) also boosted HIV product sales. Yeztugo raked in sales of $166 million in the first quarter.
The Liver Disease portfolio sales, which include chronic HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV), increased 1% to $767 million, primarily driven by higher demand for Livdelzi for the treatment of primary biliary cholangitis (PBC), partially offset by unfavorable inventory dynamics and lower sales for HCV products.
Liver Disease portfolio sales missed the Zacks Consensus Estimate of $778 million but managed to beat our model estimate of $765 million.
Veklury sales plunged 52% to $144 million, primarily due to lower rates of COVID-19-related hospitalizations.
Cell Therapy product (comprising Yescarta and Tecartus) sales decreased 12% to $407 million due to ongoing competitive headwinds. The figure missed the Zacks Consensus Estimate of $432 million and our model estimate of $447 million.
Yescarta sales decreased 14% year over year to $332 million due to competition. Tecartus (adult acute lymphoblastic leukemia) sales declined 4% to $75 million due to competition.
Breast cancer drug Trodelvy’s sales increased 37% year over year to $402 million, driven by higher demand. Trodelvy's sales beat the Zacks Consensus Estimate of $367 million and our model estimate of $352 million.
GILD’s Cost Analysis
Adjusted product gross margin was 87.5%, up from 85.5% in the year-ago quarter due to the expiration of a royalty-related obligation and product mix.
Adjusted research and development expenses totaled $1.4 billion, up from $1.3 billion in the year-ago quarter. This was primarily driven by higher investment in virology clinical manufacturing, partially offset by lower oncology clinical study activity.
Adjusted SG&A expenses increased to $1.4 billion from $1.2 billion due to higher HIV promotional expenses.
Acquired IPR&D expenses amounted to $107 million, primarily related to an $80 million upfront payment for the company’s collaboration with Suzhou Genhouse Bio Co., Ltd.
As of March 31, 2026, Gilead had $8.6 billion of cash, cash equivalents and marketable debt securities, down from $10.6 billion as of Dec. 31, 2025.
GILD Updates 2026 Guidance
Gilead now expects product sales to be between $30 billion and $30.4 billion (previous guidance: $29.6-$30 billion). The Zacks Consensus Estimate for 2026 revenues is pinned at $30.15 billion.
Total product sales, excluding Veklury, are now expected to be between $29.4 billion and $29.8 billion (previous guidance: $29-$29.4 billion). Total Veklury sales are still estimated to be $600 million.
GILD now expects to report an adjusted loss per share of $1.05-$0.65. The company had earlier anticipated adjusted EPS in the range of $8.45-$8.85. The EPS guidance was reduced approximately $9.50 due to the anticipated acquired IPR&D charges of $11.5 billion as well as financing costs related to the Arcellx, Ouro Medicines and Tubulis GmbH transactions.
GILD’s Acquisition Spree
Gilead is looking for targeted acquisitions to bolster its pipeline and diversify beyond its dominant HIV franchise.
It strengthened its oncology pipeline and long-term growth prospects by acquiring Arcellx for $115 per share in cash, implying an equity value of approximately $7.8 billion, plus a contingent value right of $5 per share. This transaction centers on anitocabtagene autoleucel (anito-cel), a late-stage CAR-T therapy for relapsed or refractory multiple myeloma (R/R MM).
The FDA accepted the biologics license application for anito-cel in fourth-line-plus (R/R MM), setting a target action date of Dec. 23, 2026. A potential approval could position anito-cel as an important growth driver in Gilead’s cell therapy portfolio.
Gilead announced a definitive agreement to acquire Tubulis, a privately held clinical-stage biotechnology company focused on next-generation antibody-drug conjugates (ADCs). The acquisition includes lead candidate TUB-040, a NaPi2b-targeted topoisomerase-I inhibitor ADC currently being evaluated in a phase Ib/II study for platinum-resistant ovarian cancer and non-small cell lung cancer.
On the inflammation front, Gilead announced a definitive agreement to acquire Ouro, a private clinical-stage biotechnology company focused on T-cell engager (TCE) therapies for autoimmune diseases, strengthening its immunology pipeline. The deal adds Ouro’s lead candidate, OM336 (gamgertamig), a BCMAxCD3 TCE, to Gilead’s portfolio.
Gilead also entered into a framework agreement with Galapagos NV (GLPG - Free Report) related to the acquisition, under which the companies will equally share the $1.675 billion upfront payment and up to $500 million in potential milestone payments. The transaction remains subject to regulatory approvals and customary closing conditions.
Galapagos expects to assume substantially all of Ouro’s operating assets and personnel.
Our Take on GILD’s Q1 Performance
Gilead’s first-quarter results were good. HIV business continues to maintain momentum, driven by solid performance of Biktarvy and Descovy, and incremental contributions from Yeztugo.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Following better-than-expected first-quarter results and improving market trends, Gilead raised its 2026 sales guidance for Yeztugo to $1 billion, signaling the product’s potential to achieve blockbuster status in its first full year on the market.
The FDA accepted Gilead’s new drug application for bictegravir/lenacapavir (BIC/LEN) for virologically suppressed people living with HIV under priority review, setting a target action date of Aug. 27, 2026. A potential approval of BIC/LEN will further bolster its HIV portfolio.
Driven by increased Yeztugo sales expectations and strong first-quarter HIV performance, Gilead now projects total 2026 HIV sales growth of approximately 8% year over year, up from its prior guidance of 6% issued in February. The updated outlook includes an estimated 2% headwind related to the U.S. government’s Medicaid drug pricing agreement and proposed Affordable Care Act changes.
Approval of better HIV treatments should strengthen the HIV franchise in the wake of increasing competition from the likes of GSK plc (GSK - Free Report) .
GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato.
Breast cancer drug Trodelvy continues to gain market share in the second-line setting. GILD has submitted two supplemental biologics license applications seeking approval of the drug for use in first-line metastatic triple-negative breast cancer patients.
A potential approval in the first-line setting (regulatory decisions are expected in the second half of 2026) will boost sales.
Gilead’s aggressive dealmaking strategy — including the acquisition of Arcellx and agreements with Ouro and Tubulis — highlights the company’s commitment to diversifying beyond its core HIV franchise into higher-growth oncology and immunology markets. While these transactions strengthen Gilead’s long-term pipeline and growth potential, the sizable upfront payments and integration-related costs are pressuring near-term profitability.
This, in turn, has prompted Gilead to lower its EPS guidance, raising investor concerns about margin pressure and the timelinerequired for these acquisitions to generate meaningful returns.
View the Zacks #1 Rank List
Image: Bigstock
GILD Beats Q1 Earnings and Sales Estimates, Lowers '26 EPS View
Key Takeaways
Gilead Sciences, Inc. (GILD - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $2.03, which beat the Zacks Consensus Estimate of $1.89. In the year-ago quarter, the company reported an adjusted EPS of $1.81.
The year-over-year increase was primarily driven by higher product sales and lower acquired IPR&D expenses.
Total revenues of $7 billion beat the Zacks Consensus Estimate of $6.9 billion. Revenues were up 4% year over year, driven by higher HIV, breast cancer drug Trodelvy and liver disease drug Livdelzi sales.
However, the stock is down on May 8, probably due to a reduction in annual EPS guidance for 2026 that did not impress the Wall Street.
Gilead’s shares have gained 9.2% year to date against the industry's decline of 0.2%.
Image Source: Zacks Investment Research
HIV, Trodelvy and Livdelzi Power GILD’s Q1 Results
Total revenues comprise product sales and royalty, contract and other revenues.
Product sales increased 5% year over year to $6.9 billion. Excluding Veklury (remdesivir for COVID 19), product sales increased 8% to $6.8 billion.
HIV product sales grew 10% year over year to $5 billion, driven by higher demand. The figure beat both the Zacks Consensus Estimate and our model estimate of $4.8 billion.
Flagship HIV therapy Biktarvy’s sales increased 7% year over year to $3.4 billion, driven by higher demand and average realized price. The reported number beat both the Zacks Consensus Estimate and our model estimate of $3.3 billion.
Per GILD, Biktarvy accounts for over 52% share of the HIV treatment market in the United States.
Descovy (FTC 200 mg/TAF 25 mg) sales increased 38% year over year to $807 million, driven by higher average realized price and increased demand for HIV prevention. The reported number comfortably beat the Zacks Consensus Estimate of $632 million and our model estimate of $594 million.
Incremental sales of newly approved Yeztugo (lenacapavir) for pre-exposure prophylaxis (PrEP) also boosted HIV product sales. Yeztugo raked in sales of $166 million in the first quarter.
The Liver Disease portfolio sales, which include chronic HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV), increased 1% to $767 million, primarily driven by higher demand for Livdelzi for the treatment of primary biliary cholangitis (PBC), partially offset by unfavorable inventory dynamics and lower sales for HCV products.
Liver Disease portfolio sales missed the Zacks Consensus Estimate of $778 million but managed to beat our model estimate of $765 million.
Veklury sales plunged 52% to $144 million, primarily due to lower rates of COVID-19-related hospitalizations.
Cell Therapy product (comprising Yescarta and Tecartus) sales decreased 12% to $407 million due to ongoing competitive headwinds. The figure missed the Zacks Consensus Estimate of $432 million and our model estimate of $447 million.
Yescarta sales decreased 14% year over year to $332 million due to competition. Tecartus (adult acute lymphoblastic leukemia) sales declined 4% to $75 million due to competition.
Breast cancer drug Trodelvy’s sales increased 37% year over year to $402 million, driven by higher demand. Trodelvy's sales beat the Zacks Consensus Estimate of $367 million and our model estimate of $352 million.
GILD’s Cost Analysis
Adjusted product gross margin was 87.5%, up from 85.5% in the year-ago quarter due to the expiration of a royalty-related obligation and product mix.
Adjusted research and development expenses totaled $1.4 billion, up from $1.3 billion in the year-ago quarter. This was primarily driven by higher investment in virology clinical manufacturing, partially offset by lower oncology clinical study activity.
Adjusted SG&A expenses increased to $1.4 billion from $1.2 billion due to higher HIV promotional expenses.
Acquired IPR&D expenses amounted to $107 million, primarily related to an $80 million upfront payment for the company’s collaboration with Suzhou Genhouse Bio Co., Ltd.
As of March 31, 2026, Gilead had $8.6 billion of cash, cash equivalents and marketable debt securities, down from $10.6 billion as of Dec. 31, 2025.
GILD Updates 2026 Guidance
Gilead now expects product sales to be between $30 billion and $30.4 billion (previous guidance: $29.6-$30 billion). The Zacks Consensus Estimate for 2026 revenues is pinned at $30.15 billion.
Total product sales, excluding Veklury, are now expected to be between $29.4 billion and $29.8 billion (previous guidance: $29-$29.4 billion). Total Veklury sales are still estimated to be $600 million.
GILD now expects to report an adjusted loss per share of $1.05-$0.65. The company had earlier anticipated adjusted EPS in the range of $8.45-$8.85. The EPS guidance was reduced approximately $9.50 due to the anticipated acquired IPR&D charges of $11.5 billion as well as financing costs related to the Arcellx, Ouro Medicines and Tubulis GmbH transactions.
GILD’s Acquisition Spree
Gilead is looking for targeted acquisitions to bolster its pipeline and diversify beyond its dominant HIV franchise.
It strengthened its oncology pipeline and long-term growth prospects by acquiring Arcellx for $115 per share in cash, implying an equity value of approximately $7.8 billion, plus a contingent value right of $5 per share. This transaction centers on anitocabtagene autoleucel (anito-cel), a late-stage CAR-T therapy for relapsed or refractory multiple myeloma (R/R MM).
The FDA accepted the biologics license application for anito-cel in fourth-line-plus (R/R MM), setting a target action date of Dec. 23, 2026. A potential approval could position anito-cel as an important growth driver in Gilead’s cell therapy portfolio.
Gilead announced a definitive agreement to acquire Tubulis, a privately held clinical-stage biotechnology company focused on next-generation antibody-drug conjugates (ADCs). The acquisition includes lead candidate TUB-040, a NaPi2b-targeted topoisomerase-I inhibitor ADC currently being evaluated in a phase Ib/II study for platinum-resistant ovarian cancer and non-small cell lung cancer.
On the inflammation front, Gilead announced a definitive agreement to acquire Ouro, a private clinical-stage biotechnology company focused on T-cell engager (TCE) therapies for autoimmune diseases, strengthening its immunology pipeline. The deal adds Ouro’s lead candidate, OM336 (gamgertamig), a BCMAxCD3 TCE, to Gilead’s portfolio.
Gilead also entered into a framework agreement with Galapagos NV (GLPG - Free Report) related to the acquisition, under which the companies will equally share the $1.675 billion upfront payment and up to $500 million in potential milestone payments. The transaction remains subject to regulatory approvals and customary closing conditions.
Galapagos expects to assume substantially all of Ouro’s operating assets and personnel.
Our Take on GILD’s Q1 Performance
Gilead’s first-quarter results were good. HIV business continues to maintain momentum, driven by solid performance of Biktarvy and Descovy, and incremental contributions from Yeztugo.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
Following better-than-expected first-quarter results and improving market trends, Gilead raised its 2026 sales guidance for Yeztugo to $1 billion, signaling the product’s potential to achieve blockbuster status in its first full year on the market.
The FDA accepted Gilead’s new drug application for bictegravir/lenacapavir (BIC/LEN) for virologically suppressed people living with HIV under priority review, setting a target action date of Aug. 27, 2026. A potential approval of BIC/LEN will further bolster its HIV portfolio.
Driven by increased Yeztugo sales expectations and strong first-quarter HIV performance, Gilead now projects total 2026 HIV sales growth of approximately 8% year over year, up from its prior guidance of 6% issued in February. The updated outlook includes an estimated 2% headwind related to the U.S. government’s Medicaid drug pricing agreement and proposed Affordable Care Act changes.
Approval of better HIV treatments should strengthen the HIV franchise in the wake of increasing competition from the likes of GSK plc (GSK - Free Report) .
GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato.
Breast cancer drug Trodelvy continues to gain market share in the second-line setting. GILD has submitted two supplemental biologics license applications seeking approval of the drug for use in first-line metastatic triple-negative breast cancer patients.
A potential approval in the first-line setting (regulatory decisions are expected in the second half of 2026) will boost sales.
Gilead’s aggressive dealmaking strategy — including the acquisition of Arcellx and agreements with Ouro and Tubulis — highlights the company’s commitment to diversifying beyond its core HIV franchise into higher-growth oncology and immunology markets. While these transactions strengthen Gilead’s long-term pipeline and growth potential, the sizable upfront payments and integration-related costs are pressuring near-term profitability.
This, in turn, has prompted Gilead to lower its EPS guidance, raising investor concerns about margin pressure and the timelinerequired for these acquisitions to generate meaningful returns.
GILD’s Zacks Rank
Gilead currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.