Gilead Reports Strong Q4 Earnings but Weak 2026 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy GILD?
Source: Benzinga
- Strong Quarterly Performance: Gilead reported Q4 earnings of $1.86 per share, surpassing the consensus estimate of $1.81, with quarterly revenue of $7.93 billion exceeding the Street estimate of $7.69 billion, indicating robust performance in the HIV treatment sector.
- Successful Product Launch: CEO Daniel O'Day highlighted the successful U.S. launch of Yeztugo, the world's first twice-yearly HIV prevention therapy, which has contributed to the continued growth of Biktarvy and Descovy, enhancing the company's competitive position in the market.
- Weak 2026 Financial Guidance: Gilead expects adjusted EPS for fiscal 2026 to be between $8.45 and $8.85, below the analyst estimate of $8.74, with revenue projected between $29.6 billion and $30 billion, also falling short of the $30.22 billion estimate, which may impact investor confidence.
- Analysts Raise Price Targets: Following the earnings announcement, several analysts raised their price targets for Gilead, with Needham increasing from $140 to $170, Scotiabank from $140 to $177, and Cantor Fitzgerald from $135 to $155, reflecting market confidence in the company's future performance.
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Analyst Views on GILD
Wall Street analysts forecast GILD stock price to fall
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 151.810
Low
105.00
Averages
137.88
High
154.00
Current: 151.810
Low
105.00
Averages
137.88
High
154.00
About GILD
Gilead Sciences, Inc. is a biopharmaceutical company. It is engaged in advancing medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer, and inflammation. It is focused on discovering, developing, and delivering medicines to address unmet medical needs in virology, oncology, and other therapeutic areas. Its portfolio of marketed products includes Biktarvy, Genvoya, Descovy, Complera/Eviplera, Symtuza, Truvada, Stribild, Sunlenca, Epclusa, Vemlidy, Harvoni, Viread, Livdelzi, Veklury, Yescarta, Tecartus, Trodelvy, AmBisome, and Letairis. Its product candidates include Bulevirtide, Lenacapavir, Axicabtagene ciloleucel, Sacituzumab govitecan-hziy, and others. It also develops the HB-400 program and the HB-500 program. It develops therapies that are intended to provide functional cures for hepatitis B virus and human immunodeficiency virus-1. It has a cancer program, namely TREX1. It operates in more than 35 countries worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings and Revenue Performance: Among the reporting companies, 4 missed earnings estimates while 11 exceeded consensus, with all companies reporting better-than-expected revenue, showcasing the sector's resilience and growth potential.
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- Earnings and Revenue Performance: Among the reporting companies, 4 missed earnings estimates while 11 exceeded consensus, with all companies reporting better-than-expected revenue, showcasing the sector's resilience and growth potential.
- Gilead Sciences Performance: Gilead Sciences (GILD) reported earnings per share of $1.86 and revenue of $7.93 billion, surpassing expectations; however, its 2026 non-GAAP EPS guidance fell short of market estimates, leading to a decline in after-market trading.
- CVS Health Outlook: CVS Health (CVS) reported Q4 earnings of $1.09 per share and revenue of $105.69 billion, beating forecasts, but its unchanged full-year earnings outlook led to a drop in share price, reflecting market caution regarding future growth prospects.
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- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
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- Software Selloff: After three consecutive days of gains, the iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell over 3% on Wednesday, indicating a decline in market confidence towards the software sector, which could impact investor sentiment towards tech stocks overall.
- Strong Jobs Data but Severe Revisions: Although January's nonfarm payrolls rose by 130,000, significantly exceeding economists' expectations of 70,000, the total U.S. job growth for 2025 was drastically revised down to just 181,000, highlighting the fragility of economic recovery and potentially raising concerns about future growth.
- Unexpected Drop in Unemployment Rate: The unemployment rate fell from 4.4% to 4.3%, which appears positive on the surface; however, this contrasts sharply with the downward revisions in job growth, possibly leading investors to question the economic outlook.
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- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
- Market Volatility Overview: The Dow Jones Industrial Average fell by 0.19%, the S&P 500 dipped 0.02%, while the Nasdaq 100 rose by 0.10%, indicating a mixed market performance amid declines in software stocks.
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- Acadia Healthcare Stock Surge: Acadia Healthcare's stock rose 10% after investor David Einhorn announced his purchases, reflecting market optimism about the new management's ability to enhance performance, which could improve future profitability.
- Vertiv's Upbeat Guidance: Vertiv's stock jumped nearly 20% due to its optimistic guidance for 2026, with orders accelerating significantly in Q4, surpassing Wall Street expectations and indicating strong demand in the data center market.
- Unity Software's Downgrade: Unity Software's shares fell nearly 30% after issuing a first-quarter revenue outlook between $480 million and $490 million, below analysts' expectations of $492.1 million, raising concerns about its future growth prospects.
- Smurfit WestRock Order Improvement: Smurfit WestRock's stock soared over 10% after revealing improved product orders in late December, with expectations of reaching $7 billion in profits by 2030, highlighting its long-term growth potential.
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- Sales Growth: The company's quarterly sales reached $391.578 million, exceeding the anticipated $385.560 million, suggesting sustained demand for its products that could drive future revenue growth.
- Stock Surge: Diodes shares jumped 31.8% to $81.32 on Wednesday, reflecting a positive market reaction to its earnings report, which may attract more investor interest.
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