Gilead Q4 Earnings Beat; FY26 Guidance Disappoints

Gilead Sciences (GILD) reported Q4 results on Feb. 10, 2026, with earnings exceeding estimates, but issued FY2026 guidance below analysts’ forecasts as declines in Veklury and pricing pressure weighed on near-term growth.

Fourth-Quarter Results and Franchise Performance

Gilead posted fourth-quarter product sales of $7.9 billion, up 5% year over year and above the consensus range of $7.57 billion to $7.85 billion. Adjusted earnings per share (EPS) were $1.86, down from $1.90 a year earlier but above the consensus estimate of $1.83.

The HIV franchise drove the quarter’s outperformance, with sales of $5.8 billion and full-year revenue of $20.8 billion, a 6% increase from 2024 and roughly 10% growth excluding the Medicare Part D redesign. Biktarvy accounted for $4.0 billion of Q4 sales, while Descovy reached $2.8 billion for the year, up 31%.

Outside HIV, liver-disease medicines generated $3.2 billion in 2025. Livdelzi delivered $150 million in the quarter, rising about 42% sequentially and capturing more than half of the U.S. second-line primary biliary cholangitis market after a competitor’s exit. Trodelvy produced $1.4 billion in full-year oncology sales, up 6% despite a U.S. bladder-cancer withdrawal at the end of 2024. Kite cell-therapy revenue totaled $1.8 billion, down 7% year over year. Veklury sales declined by $900 million in 2025. Overall product sales for the year reached $28.9 billion, a 1% increase that exceeded prior guidance of $28.4 billion to $28.7 billion. Sunlenca (Yeztugo) posted $150 million for the year and $96 million in the quarter, securing roughly 90% payer coverage, including $0 copays for a large share of covered lives.

FY2026 Guidance and Outlook

Gilead issued FY2026 product-sales guidance of $29.6 billion to $30.0 billion and non-GAAP diluted EPS guidance of $8.45 to $8.85, a range below analyst expectations.

Management said the base business excluding Veklury was $28.0 billion in 2025, up about 4% year over year and 8% excluding the Part D redesign. The company expects roughly 6% HIV growth in 2026 despite a 2% Medicaid pricing headwind and shifts through the ACA channel. It projects Sunlenca could approach $800 million next year and models about a 10% decline at Kite as competition and trial-enrollment effects continue.

The FY2026 assumptions include product gross margins near 87%, research and development (R&D) spending rising in the low single digits, selling, general, and administrative (SG&A) expenses growing in the mid single digits to support launches, and a non-GAAP tax rate around 20%.

Management outlined potential 2026 launches that could affect the outlook, including Trodelvy in first-line triple-negative breast cancer, an oral bictegravir-plus-lenacapavir HIV combination, anito-cel, and bulevirtide—two cancer therapies and an additional HIV option the company plans to advance next year. These pipeline and launch assumptions underpin the company’s forecast as it seeks to translate a strong 2025 into growth while managing product-specific declines and pricing pressures.

“Our fourth quarter and full-year results close out a very strong year for Gilead overall,” said Daniel O’Day, chairman and CEO.