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GILD Q3 Earnings Call Highlights Raised Outlook and Pricing Risks

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Key Takeaways

  • GILD raises 2026 sales guidance to $31B-$31.3B, with HIV revenue growth of approximately 12% expected.
  • Biktarvy faces a $1.5B pricing hit in 2028, but Gilead still expects HIV sales and earnings to grow.
  • Yeztugo sales rise 31% to $305M, while Trodelvy gains 42% amid an 18% decline in cell therapy revenues.

Gilead Sciences, Inc. (GILD - Free Report) raised its 2026 sales outlook following strong third-quarter growth while providing new details on a significant Biktarvy pricing headwind expected in 2028.

Management emphasized expanding HIV prevention, advancing oncology launches and building its inflammation pipeline. The call also addressed inventory dynamics, clinical development risks and spending discipline.

GILD Raises 2026 Sales Outlook

Chief financial officer Andrew Dickinson raised the 2026 product sales guidance to $31 billion-$31.3 billion, including base business sales of $30.7 billion-$31 billion. The latter represents a $900 million midpoint increase from August.

Management expects HIV revenues to grow approximately 12% in 2026, supported by Biktarvy, Descovy and Yeztugo.

Dickinson projected non-GAAP losses of $0.85-$1.20 per share, reflecting acquisition-related research expenses. Excluding specified acquisition and other impacts, illustrative adjusted EPS guidance increased to $8.75-$9.10.

GILD reported third-quarter earnings of $2.55 per share, beating the Zacks Consensus Estimate of $2.17. Revenues of $8.3 billion outpaced the Zacks Consensus Estimate of $7.81 billion.

Gilead Sciences, Inc. Price, Consensus and EPS Surprise

Gilead Sciences, Inc. Price, Consensus and EPS Surprise

Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote

Gilead Details Biktarvy's 2028 Pricing Pressure

Dickinson disclosed an estimated $1.5 billion net Biktarvy revenue headwind in 2028 following Medicare price negotiations. The established price of $2,600 per 30-day supply represents a 38% discount to list price.

During questioning from Jefferies, chief commercial and corporate affairs officer Johanna Mercier clarified that the estimate includes Medicare and downstream pricing effects across Medicaid, 340B and other channels.

Chief executive officer Daniel O'Day criticized the policy's implications for pharmaceutical innovation. Nevertheless, management expects overall HIV revenues, total product sales and earnings to grow in 2028.

GILD Sees Sustained HIV Prevention Momentum

Mercier reported that HIV prevention sales nearly doubled year over year. Yeztugo generated $305 million, increasing 31% sequentially, with full-year sales expected near $1 billion.

She highlighted more than 70% of Yeztugo users returning for their second injection. Biktarvy also reached a record 53% U.S. treatment market share.

Addressing JPMorgan's questions, Mercier described once-weekly oral lenacapavir as an option for patients preferring pills over injections. Chief medical officer Dietmar Berger expects an FDA decision in February 2027.

Gilead Advances Oncology Despite Cell Therapy Weakness

Trodelvy sales increased 42% to $506 million, supported by growing breast cancer demand. Mercier highlighted its expanding first-line use following U.S. and European approvals.

Cell therapy revenues declined 18% to $355 million amid competition. Mercier outlined preparations for anito-cel's December 23 regulatory decision, targeting rapid treatment-center activation and payer coverage.

During Leerink Partners' questioning, Kite executive vice president Cindy Perettie explained that KITE-753 trials remain partially suspended while investigators examine severe neurological adverse events. She confirmed that no patient deaths occurred in the affected studies.

GILD Expands Its Inflammation Pipeline

Berger emphasized positive Phase 2 emvistegrast results in ulcerative colitis, supporting planned Phase 3 development in 2027. Gilead also intends to investigate the drug in Crohn's disease.

The planned PepStar transaction adds investigational oral IL-23 receptor inhibitor HCXT-2001, expanding potential combination approaches.

When Evercore questioned practical dosing compatibility, Berger acknowledged that formulation work remains underway. Management also highlighted gamgertamig's planned Phase 3 advancement in autoimmune cytopenia during 2027.

Gilead Maintains Focus on Operating Discipline

Dickinson reported a third-quarter non-GAAP operating margin of 50.2% compared with 50.5% a year earlier. Higher clinical spending, promotional investment and compensation accruals increased expenses.

Answering Morgan Stanley's questions, Dickinson reaffirmed management's commitment to maintaining strong margins while absorbing acquisition-related development spending.

The company generated approximately $5 billion in quarterly operating cash flow and returned roughly $1.4 billion to shareholders through dividends and repurchases.

GILD Balances Expansion With Execution Risks

O'Day emphasized diversification across HIV, oncology and inflammation, supported by ongoing commercial launches and clinical development.

Management's priorities remain sustaining HIV franchise growth, progressing new therapies and managing reimbursement pressures while maintaining operating discipline.

What GILD's Zacks Rank and Style Scores Indicate

GILD currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Growth Score of B highlights favorable growth characteristics, while its Value Score of C and VGM Score of C indicate more balanced assessments. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Momentum Score of F reflects weak price momentum characteristics. Zacks Style Scores complement the earnings-revision-based ranking system rather than independently determining investment prospects. GILD's Zacks Rank could change as analysts revise earnings estimates following the latest quarterly results.

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