Gilead Sciences posted better-than-anticipated adjusted earnings and revenue for the first quarter, and raised its 2026 sales forecast. At the same time, the drugmaker said it now expects an adjusted loss for the year after taking on charges and financing costs connected to recent acquisitions.
Management increased its 2026 sales expectation for Yeztugo, its HIV prevention product launched in the U.S. last year, to $1 billion from a prior estimate of $800 million. In the first quarter Yeztugo generated $166 million in sales, topping the $143 million analysts had projected, according to LSEG data.
Gilead also nudged up its overall 2026 sales outlook by $400 million to a range of $30.0 billion to $30.4 billion.
Despite the sales upgrades, the company now anticipates an adjusted loss for the year of $1.05 to $0.65 a share. That is a significant shift from its earlier forecast of adjusted earnings of $8.45 to $8.85 a share, a change Gilead attributed to transactions to acquire cell therapy company Arcellx, autoimmune drug developer Ouro Medicines and cancer drug developer Tubulis.
Chief Financial Officer Andrew Dickinson said in an interview that if an $11.5 billion charge tied to those deals, which Gilead will take in the second quarter, were excluded, the company’s earnings outlook would be unchanged.
For the first quarter, Gilead reported adjusted earnings per share of $2.03, above the average analyst estimate of $1.91, based on LSEG data. Revenue rose 4% to $6.96 billion, also exceeding the $6.91 billion Wall Street consensus.
CEO Daniel O’Day described the quarter as "another really strong quarter with demand-driven growth across all of our business areas."
Performance across Gilead’s portfolio was mixed by product line. Quarterly sales of the HIV treatment Biktarvy increased 7% to $3.36 billion, slightly ahead of the $3.32 billion analyst estimate. The liver disease portfolio saw sales up 1% to $767 million.
Cell therapy product sales declined 12% to $407 million, a drop the company linked to increased competition. Sales of the cancer drug Trodelvy rose 37% to $402 million.
Net income for the quarter increased to $1.61 per share from $1.04 per share a year earlier.
Summary
Gilead delivered first-quarter adjusted EPS and revenue above expectations and raised its 2026 sales forecast, driven in part by stronger-than-expected Yeztugo sales. The company now expects an adjusted loss for the year following acquisition-related charges and financing costs tied to its recent deals for Arcellx, Ouro Medicines and Tubulis. Excluding an $11.5 billion charge to be recorded in the second quarter, management says the earnings outlook would be unchanged.
Key points
- Yeztugo 2026 sales forecast raised to $1 billion from $800 million after $166 million in first-quarter sales beat estimates; overall 2026 sales outlook raised to $30.0 billion-$30.4 billion.
- Gilead reported adjusted EPS of $2.03 and revenue of $6.96 billion for Q1, both above analyst expectations.
- Company now expects an adjusted loss of $1.05 to $0.65 per share for the year, due to acquisition-related charges and financing costs tied to Arcellx, Ouro Medicines and Tubulis; an $11.5 billion charge will be taken in Q2.
Risks and uncertainties
- Acquisition-related charges and financing costs - These have directly shifted Gilead’s full-year outlook from a projected profit to an expected adjusted loss, affecting the company’s financial results and investor returns.
- Competitive pressure in cell therapies - A 12% decline in cell therapy product sales was attributed to rising competition, which may pressure revenues in that segment.
- Execution risk on recently announced deals - The $11.5 billion charge tied to the acquisitions will be taken in the second quarter, and any related integration or financing issues could influence future results.