Gilead Q3 2026 Results Lifted by HIV Sales
Gilead Q3 2026 results lifted product-sales guidance as Biktarvy and Trodelvy boosted revenue and spurred near-term positioning before Medicare pricing.
KEY TAKEAWAYS
- Gilead reported Q3 product sales of $8.3 billion, up 13% year over year.
- The company raised 2026 product-sales guidance to $31.0 billion-$31.3 billion.
- CMS completed Biktarvy Medicare pricing, effective Jan. 1, 2028, posing a material 2028 revenue risk.
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Gilead Sciences reported stronger demand for Biktarvy and Trodelvy in the third quarter of 2026, prompting an increase to its full-year product-sales guidance on Oct. 29, 2026. The company also noted that the Medicare Maximum Fair Price for Biktarvy will take effect on Jan. 1, 2028.
Strong Quarter and Raised Guidance
Gilead said in a press release on Oct. 29, 2026, that product sales and total revenue reached $8.3 billion in Q3 2026, up 13.0% year over year. Non-GAAP diluted earnings per share (EPS) rose to $2.55 from $2.47 a year earlier, while GAAP diluted EPS declined to $1.94 from $2.43.
Base-business sales, defined as product sales excluding Veklury, totaled $8.2 billion, a 16.0% increase year over year. Daniel O’Day, chairman and chief executive, said, “Gilead delivered an exceptional third quarter, with our strongest year-over-year base business growth in more than a decade, reflecting the strength, breadth and durability of our business.”
The company raised its 2026 product-sales guidance to $31.0 billion–$31.3 billion from $30.1 billion–$30.4 billion and set base-business sales guidance at $30.7 billion–$31.0 billion. The updated outlook reflects higher HIV demand and prevention sales as key drivers. Gilead also revised its adjusted diluted-EPS guidance to a loss of $1.20–$0.85 per share from a prior loss range of $0.65–$0.30, citing $12.4 billion of deal-related charges.
Product-Line Performance
HIV product sales rose 18.0% year over year to $6.2 billion. Biktarvy sales increased 10.0% to $4.1 billion, driven by higher demand, a higher average realized price, and favorable inventory dynamics. Trodelvy sales climbed 42.0% to $506 million, primarily due to increased demand.
The liver-disease portfolio contributed $927 million in sales, up 13.0%, while cell-therapy revenue declined 18.0% to $355 million amid ongoing competition.
On a GAAP basis, product gross margin was 81.0% in the quarter, compared with 78.6% a year earlier. Non-GAAP gross margin rose to 88.1% from 86.5%, mainly due to the expiration of a royalty obligation related to tenofovir alafenamide in November 2025.
Biktarvy Medicare Pricing and Future Impact
Gilead said the Centers for Medicare & Medicaid Services (CMS) completed the Medicare Maximum Fair Price-setting process for Biktarvy in October 2026. The new price is scheduled to take effect and impact Biktarvy revenue starting Jan. 1, 2028.
A secondary report estimated the Medicare price reduction for Biktarvy at about 38% beginning in 2028. This scheduled price change presents a significant revenue risk for 2028 that investors and analysts will need to consider alongside the near-term momentum reflected in Gilead’s 2026 sales guidance.
The company’s raised guidance highlights strong near-term commercial performance led by its HIV franchise, while the Medicare pricing sets a material headwind for longer-term revenue projections.
