TLDR
- Gilead beat Q1 revenue expectations with $6.96 billion, topping the $6.91 billion consensus.
- Adjusted EPS came in at $2.03, above the $1.91 forecast.
- Full-year EPS guidance was slashed to a loss of $0.65–$1.05, down from prior guidance of $8.45–$8.85.
- The guidance cut was driven by $11.5 billion in IPR&D charges tied to recent acquisitions.
- GILD stock fell roughly 2% in after-hours trading and was down 1% to $132.60 in Friday premarket.
Gilead Sciences beat Wall Street’s Q1 estimates but its stock dropped anyway. The culprit? A dramatic revision to full-year earnings guidance that caught investors off guard.
The stock fell close to 2% in after-hours trading on Wednesday, and was down 1% to $132.60 in Friday premarket trading.
Gilead posted Q1 revenue of $6.96 billion, edging past the $6.91 billion consensus. Adjusted EPS came in at $2.03, beating the $1.91 forecast from analysts polled by FactSet.
$GILD (Gilead Sciences) #earnings are out: pic.twitter.com/d0opY42k57
— The Earnings Correspondent (@earnings_guy) May 7, 2026
On the back of those results, Gilead raised its full-year revenue guidance to $30 billion–$30.4 billion, up from a prior range of $29.6 billion–$30 billion.
But the EPS picture told a different story.
The company now expects a full-year adjusted loss of $0.65 to $1.05 per share. That’s a sharp reversal from prior guidance of $8.45 to $8.85 in earnings. Analysts had been expecting $8.65.
Gilead tied the revision to $11.5 billion in in-process research and development (IPR&D) charges, along with additional financing costs from a string of recent acquisitions.
HIV Portfolio Carries the Quarter
Biktarvy, Gilead’s flagship HIV drug, once again did the heavy lifting. Sales rose 8% to $3.4 billion, accounting for nearly half of total revenue. The broader HIV portfolio posted 10% year-over-year growth.
Gilead also raised its revenue forecast for Yeztugo, its twice-daily HIV prevention injection, to $1 billion — up sharply from an earlier estimate of $200 million.
Not everything performed. Veklury, Gilead’s COVID-19 antiviral, saw sales fall 52% to $144 million, which Gilead attributed to lower COVID-19 hospitalization rates.
Epclusa, its hepatitis C treatment, brought in $283 million versus $346 million in the same period last year. The cell therapy portfolio also softened, dropping roughly 12% to $407 million from $464 million.
Excluding Veklury, product sales rose 8% to $6.8 billion.
Acquisition Spree Drives the Guidance Hit
Gilead has been buying aggressively in 2026. In February, it agreed to acquire Arcellx for $7.8 billion. Gilead already had an existing collaboration with the Maryland-based biotech to co-develop anitocabtagene autoleucel.
At the end of March, Gilead agreed to buy privately held Ouro Medicine to strengthen its autoimmune pipeline. Last month, it struck a deal to acquire Tubulis GmbH, expanding its antibody-drug conjugate capabilities.
The $11.5 billion IPR&D charge tied to these deals is what’s driving the EPS guidance reversal.
Gilead’s market cap sits at approximately $164.57 billion. Its P/E ratio is currently at 19.8x. Insiders sold $10.6 million in stock over the past three months, with no reported purchases during that period.
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