Gilead Sciences Posts Strong Q3 Results, Raises Full‑Year Sales Outlook as Inflammation Pipeline Expands

Gilead Sciences (NASDAQ: GILD) reported robust third‑quarter 2026 results on October 29, marking its strongest base‑business growth in more than a decade. The company beat analyst expectations on both revenue and adjusted earnings and raised its full‑year product‑sales guidance, driven by standout HIV performance and momentum across its oncology and inflammation pipelines.

Q3 Highlights and Financial Performance

For the third quarter, Gilead posted total product sales of $8.29 billion, a 13 percent increase year-over-year from $7.35 billion in Q3 2025. Product sales excluding Veklury rose 16 percent to $8.20 billion, propelled by higher demand across HIV therapies, Trodelvy and Livdelzi. Adjusted (non‑GAAP) earnings per share came in at $2.55, exceeding the analyst consensus of $2.17. Meanwhile, GAAP diluted EPS was $1.94, down from $2.43 a year earlier, due to elevated operating expenses, tax charges, and declines in non‑product revenues.

HIV Franchise Leads Growth

Gilead’s HIV portfolio delivered exceptional results, with sales up 18 percent to $6.2 billion. Biktarvy sales grew 10 percent to $4.1 billion, while Descovy surged 49 percent to $1.0 billion. The company attributed the strong performance to heightened demand, pricing strength, and favorable inventory dynamics. It also noted that Biktarvy was selected for the maximum fair price determination under Medicare, with pricing effective from January 1, 2028.

Broader Portfolio Strength and Direction

Beyond HIV, Gilead’s oncology and liver disease products contributed meaningfully. Trodelvy sales climbed 42 percent to $506 million, and the liver disease portfolio rose 13 percent to $927 million. In contrast, Veklury (remdesivir) sales declined 69 percent to $86 million, reflecting lower COVID‑19 hospitalizations, while cell therapy revenues dropped 18 percent to $355 million amid competitive pressures.

Revised Guidance and Financial Outlook

Following the strong quarter, Gilead raised its full‑year 2026 product‑sales guidance to a range of $31.0 billion–$31.3 billion, up from the prior expectation of $30.1 billion–$30.4 billion. The company also widened its adjusted EPS loss guidance to a range of –$1.20 to –$0.85 per share, reflecting about $12.4 billion in acquisition-related charges tied to recent buys such as Arcellx, Tubulis, Ouro Medicines and PepStar.

Pipeline Advancements and M&A

Gilead continues to broaden its R&D scope. It agreed to acquire PepStar’s oral IL‑23R inhibitor program (HCXT‑2001), a Phase 1 asset in inflammation, for $1.275 billion upfront, aimed at bolstering its IBD pipeline. The acquisition is expected to modestly reduce GAAP and non-GAAP EPS in Q4. Additionally, the company presented positive Phase 2 SWIFT results for emvistegrast in ulcerative colitis and expects to initiate Phase 3 or monotherapy development in 2027.

Investor Reaction and Market Context

The market responded to the earnings beat and raised outlook, with Gilead shares rising approximately 4 percent during regular trading and trading higher in after-hours. Analyst Bank of America also raised its price target to $172 (from $168), citing the promising SWIFT data and sustained momentum across HIV and inflammation strategies.

What This Means for Investors

With a stock price of $165.61 as of October 29, 2026, Gilead reflects solid growth and strategic repositioning. The company’s diversification—anchored by HIV, expanding oncology opportunities, and a deepening inflammation pipeline—positions it well for sustained execution, though investors should monitor integration of recent acquisitions and the company’s ability to translate early-stage clinical data into commercial traction.

Next Steps to Watch

• Progression of emvistegrast into Phase 3 development and updates on HCXT‑2001 following the PepStar acquisition.
• Upcoming FDA decision on anito‑cel, targeting relapsed/refractory multiple myeloma.
• Developments in cell therapy programs and updates on KITE‑753 clinical hold resolution.
• Impact assessments of Medicare pricing policy on Biktarvy starting in 2028.