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GILD Beats Q3 Earnings on HIV Strength & Trodelvy Sales Growth
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Key Takeaways
Gilead's Q3 adjusted EPS of $2.55 beat estimates, while revenues rose 6.8% to $8.3 billion.
HIV sales surged 18% to $6.25 billion, led by Biktarvy, Descovy and rising Yeztugo demand.
Trodelvy sales jumped 42% and Livdelzi grew 93%, prompting Gilead to raise 2026 sales guidance.
Gilead Sciences (GILD - Free Report) reported third-quarter 2026 adjusted earnings of $2.55 per share, up 3.2% year over year and beating the Zacks Consensus Estimate of $2.17. Adjusted earnings increased as higher product sales and lower acquisition-related research and development charges more than offset higher operating expenses and income taxes.
Revenues rose 6.8% to $8.3 billion, beating the Zacks Consensus Estimate of $7.82 billion. Product sales grew 13% to $8.29 billion, led by HIV drugs, Trodelvy and Livdelzi. Veklury sales fell 69% to $86 million as COVID-19 hospitalizations declined. Royalty, contract and other revenues dropped to $11 million from $424 million, as prior-year intellectual property revenues did not recur.
GILD's HIV Franchise Drives Q3 Growth
HIV product sales increased 18% to $6.25 billion, beating the Zacks Consensus Estimate of $5.83 billion and our model estimate of $5.79 billion. Higher realized prices, prevention demand and favorable inventory dynamics drove growth.
Biktarvy sales climbed 10% to $4.06 billion, beating the consensus of $3.95 billion and our estimate of $3.96 billion. Demand, pricing and inventory gains supported the flagship treatment, which achieved a record 53% U.S. treatment market share.
Descovy sales surged 49% to $1.05 billion, exceeding the consensus of $904 million and our estimate of $861 million, primarily driven by higher average realized price and favorable inventory dynamics. Yeztugo contributed $305 million as demand for the twice-yearly HIV prevention injection strengthened.
Shares of GILD have gained 38.2% year to date compared with the industry’s growth of 7.3%.
Image Source: Zacks Investment Research
Gilead's Liver Disease Sales Gain Momentum
Liver Disease sales increased 13% to $927 million, surpassing the Zacks Consensus Estimate of $854 million and our model estimate of $804 million.
Livdelzi sales jumped 93% to $203 million on stronger U.S. and European demand. Higher realized prices for hepatitis B and C therapies also helped, partly offset by lower hepatitis C demand.
GILD's Cell Therapy Sales Remain Under Pressure
Cell Therapy revenues declined 18% to $355 million, missing the consensus estimate of $375 million and our estimate of $385 million amid continued competitive headwinds.
Yescarta sales fell to $294 million from $349 million a year earlier, while Tecartus declined to $60 million from $83 million. Management expects full-year Cell Therapy sales to decline by a mid-teens percentage.
Trodelvy Lifts Gilead's Oncology Franchise
Trodelvy revenues jumped 42% to $506 million, exceeding the consensus of $455 million and our estimate of $432 million.
Growth reflected increased demand in metastatic triple-negative and HR-positive/HER2-negative breast cancer. Recent first-line approvals in the United States and Europe have broadened treatment opportunities, supporting an annualized sales run rate of roughly $2 billion.
GILD's Costs Rise, Adjusted Gross Margin Expands
Adjusted product gross margin improved to 88.1% in the third quarter from 86.5% a year earlier, primarily due to the expiration of a royalty obligation.
Adjusted research and development expenses rose 19% to $1.59 billion, reflecting higher employee-related and clinical materials costs. Adjusted selling, general and administrative expenses grew 14% to $1.54 billion due to HIV promotion, legal expenses and employee costs. Acquired IPR&D expenses fell to $18 million from $170 million.
Gilead Raises Its 2026 Product Sales Guidance
Gilead lifted its 2026 product sales outlook to $31-$31.3 billion from $30.1-$30.4 billion. Sales excluding Veklury are now projected at $30.7-$31 billion, up from $29.8-$30.1 billion.
Management now expects HIV sales to grow approximately 12% and continues to anticipate about $1 billion in Yeztugo sales. However, its adjusted loss forecast widened to 85 cents-$1.20 per share from 30-65 cents, reflecting additional acquisition-related IPR&D charges.
Key Pipeline and Regulatory Updates From GILD
The FDA approved Bixlenvo, a once-daily bictegravir/lenacapavir combination for virologically suppressed adults with HIV, in August. Gilead also plans to file a U.S. regulatory application this year for once-weekly oral islatravir/lenacapavir for the treatment of HIV in virologically suppressed adults. Once-weekly oral lenacapavir for HIV prevention faces a February 2027 FDA decision.
The European Commission approved Trodelvy in combination with Keytruda for first-line PD-L1-positive metastatic triple-negative breast cancer. Separately, positive phase II emvistegrast results in ulcerative colitis support a planned phase III study in 2027.
GILD also agreed to acquire PepStar's oral IL-23 receptor inhibitor program. Anito-cel, its investigational cell therapy for relapsed or refractory multiple myeloma, faces a Dec. 23, 2026, FDA action date.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead delivered an impressive third quarter, with strong growth across its HIV franchise and improving contributions from Trodelvy and Livdelzi. Biktarvy continues to dominate the HIV treatment market, while the rapid uptake of Yeztugo is strengthening GILD's position in the expanding HIV prevention market. However, favorable pricing and inventory dynamics also drove the quarter's strong performance, and management expects inventory trends to normalize in the fourth quarter.
The robust performance prompted Gilead to raise its full-year product sales guidance again, reflecting confidence in its underlying business. Trodelvy's growing adoption in earlier lines of breast cancer treatment and Livdelzi's expanding market presence are positive developments as GILD seeks to diversify beyond HIV. The recent approval of Bixlenvo and the potential approval of anito-cel in December could provide additional growth opportunities. However, competitive pressures in Cell Therapy remain a concern.
On the profitability front, the expiration of a royalty-related obligation boosted adjusted product gross margin, although higher operating expenses and acquisition-related charges continue to weigh on Gilead's earnings outlook. Moreover, the company expects an approximately $1.5 billion net revenue headwind for Biktarvy in 2028 from Medicare pricing changes and their effects on other U.S. reimbursement channels. Sustained growth in HIV prevention and newer oncology products will be crucial to offsetting these pressures.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 96.4% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with the average surprise being 184.65%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have surged 69.3% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.82%.
Over the past 30 days, loss per share estimates for Iovance Biotherapeutics have narrowed from 49 cents to 45 cents for 2026. Over the same period, estimates for loss per share have also improved from 29 cents to 22 cents for 2027. IOVA shares have skyrocketed 243.9% year to date.
Iovance Biotherapeutics beat estimates in three of the trailing four quarters and met in the remaining one, with the average surprise being 16.82%.
View the Zacks #1 Rank List
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GILD Beats Q3 Earnings on HIV Strength & Trodelvy Sales Growth
Key Takeaways
Gilead Sciences (GILD - Free Report) reported third-quarter 2026 adjusted earnings of $2.55 per share, up 3.2% year over year and beating the Zacks Consensus Estimate of $2.17. Adjusted earnings increased as higher product sales and lower acquisition-related research and development charges more than offset higher operating expenses and income taxes.
Revenues rose 6.8% to $8.3 billion, beating the Zacks Consensus Estimate of $7.82 billion. Product sales grew 13% to $8.29 billion, led by HIV drugs, Trodelvy and Livdelzi. Veklury sales fell 69% to $86 million as COVID-19 hospitalizations declined. Royalty, contract and other revenues dropped to $11 million from $424 million, as prior-year intellectual property revenues did not recur.
GILD's HIV Franchise Drives Q3 Growth
HIV product sales increased 18% to $6.25 billion, beating the Zacks Consensus Estimate of $5.83 billion and our model estimate of $5.79 billion. Higher realized prices, prevention demand and favorable inventory dynamics drove growth.
Biktarvy sales climbed 10% to $4.06 billion, beating the consensus of $3.95 billion and our estimate of $3.96 billion. Demand, pricing and inventory gains supported the flagship treatment, which achieved a record 53% U.S. treatment market share.
Descovy sales surged 49% to $1.05 billion, exceeding the consensus of $904 million and our estimate of $861 million, primarily driven by higher average realized price and favorable inventory dynamics. Yeztugo contributed $305 million as demand for the twice-yearly HIV prevention injection strengthened.
Shares of GILD have gained 38.2% year to date compared with the industry’s growth of 7.3%.
Image Source: Zacks Investment Research
Gilead's Liver Disease Sales Gain Momentum
Liver Disease sales increased 13% to $927 million, surpassing the Zacks Consensus Estimate of $854 million and our model estimate of $804 million.
Livdelzi sales jumped 93% to $203 million on stronger U.S. and European demand. Higher realized prices for hepatitis B and C therapies also helped, partly offset by lower hepatitis C demand.
GILD's Cell Therapy Sales Remain Under Pressure
Cell Therapy revenues declined 18% to $355 million, missing the consensus estimate of $375 million and our estimate of $385 million amid continued competitive headwinds.
Yescarta sales fell to $294 million from $349 million a year earlier, while Tecartus declined to $60 million from $83 million. Management expects full-year Cell Therapy sales to decline by a mid-teens percentage.
Trodelvy Lifts Gilead's Oncology Franchise
Trodelvy revenues jumped 42% to $506 million, exceeding the consensus of $455 million and our estimate of $432 million.
Growth reflected increased demand in metastatic triple-negative and HR-positive/HER2-negative breast cancer. Recent first-line approvals in the United States and Europe have broadened treatment opportunities, supporting an annualized sales run rate of roughly $2 billion.
GILD's Costs Rise, Adjusted Gross Margin Expands
Adjusted product gross margin improved to 88.1% in the third quarter from 86.5% a year earlier, primarily due to the expiration of a royalty obligation.
Adjusted research and development expenses rose 19% to $1.59 billion, reflecting higher employee-related and clinical materials costs. Adjusted selling, general and administrative expenses grew 14% to $1.54 billion due to HIV promotion, legal expenses and employee costs. Acquired IPR&D expenses fell to $18 million from $170 million.
Gilead Raises Its 2026 Product Sales Guidance
Gilead lifted its 2026 product sales outlook to $31-$31.3 billion from $30.1-$30.4 billion. Sales excluding Veklury are now projected at $30.7-$31 billion, up from $29.8-$30.1 billion.
Management now expects HIV sales to grow approximately 12% and continues to anticipate about $1 billion in Yeztugo sales. However, its adjusted loss forecast widened to 85 cents-$1.20 per share from 30-65 cents, reflecting additional acquisition-related IPR&D charges.
Key Pipeline and Regulatory Updates From GILD
The FDA approved Bixlenvo, a once-daily bictegravir/lenacapavir combination for virologically suppressed adults with HIV, in August. Gilead also plans to file a U.S. regulatory application this year for once-weekly oral islatravir/lenacapavir for the treatment of HIV in virologically suppressed adults. Once-weekly oral lenacapavir for HIV prevention faces a February 2027 FDA decision.
The European Commission approved Trodelvy in combination with Keytruda for first-line PD-L1-positive metastatic triple-negative breast cancer. Separately, positive phase II emvistegrast results in ulcerative colitis support a planned phase III study in 2027.
GILD also agreed to acquire PepStar's oral IL-23 receptor inhibitor program. Anito-cel, its investigational cell therapy for relapsed or refractory multiple myeloma, faces a Dec. 23, 2026, FDA action date.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
Our Take on Gilead's Q3 Performance
Gilead delivered an impressive third quarter, with strong growth across its HIV franchise and improving contributions from Trodelvy and Livdelzi. Biktarvy continues to dominate the HIV treatment market, while the rapid uptake of Yeztugo is strengthening GILD's position in the expanding HIV prevention market. However, favorable pricing and inventory dynamics also drove the quarter's strong performance, and management expects inventory trends to normalize in the fourth quarter.
The robust performance prompted Gilead to raise its full-year product sales guidance again, reflecting confidence in its underlying business. Trodelvy's growing adoption in earlier lines of breast cancer treatment and Livdelzi's expanding market presence are positive developments as GILD seeks to diversify beyond HIV. The recent approval of Bixlenvo and the potential approval of anito-cel in December could provide additional growth opportunities. However, competitive pressures in Cell Therapy remain a concern.
On the profitability front, the expiration of a royalty-related obligation boosted adjusted product gross margin, although higher operating expenses and acquisition-related charges continue to weigh on Gilead's earnings outlook. Moreover, the company expects an approximately $1.5 billion net revenue headwind for Biktarvy in 2028 from Medicare pricing changes and their effects on other U.S. reimbursement channels. Sustained growth in HIV prevention and newer oncology products will be crucial to offsetting these pressures.
GILD’s Zacks Rank & Stocks to Consider
Gilead currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are TG Therapeutics (TGTX - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), and Amneal Pharmaceuticals (AMRX - Free Report) and Iovance Biotherapeutics (IOVA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 96.4% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with the average surprise being 184.65%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have surged 69.3% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 32.82%.
Over the past 30 days, loss per share estimates for Iovance Biotherapeutics have narrowed from 49 cents to 45 cents for 2026. Over the same period, estimates for loss per share have also improved from 29 cents to 22 cents for 2027. IOVA shares have skyrocketed 243.9% year to date.
Iovance Biotherapeutics beat estimates in three of the trailing four quarters and met in the remaining one, with the average surprise being 16.82%.