Gilead Beats Q3 Estimates on 18% HIV Growth, Raises 2026 Sales Outlook; Deal Charges Widen Loss Guidance

Gilead Sciences (GILD) raised its 2026 sales outlook on Oct. 29 after third-quarter product sales rose 13% to $8.3 billion and HIV sales climbed 18%. Non-GAAP EPS of $2.55 beat the $2.19 consensus by $0.36, and revenue topped the $7.8 billion estimate, per LSEG data. GAAP diluted EPS was $1.94. Shares rose 4% in regular trading and another 2.2% to $169.25 after hours, and are up 36% this year.

The quarter was carried by HIV. Overall HIV sales rose 18% to $6.2 billion, driven mainly by higher prices, prevention demand and favorable inventory dynamics. Biktarvy grew 10% to $4.1 billion, ahead of the $3.86 billion analysts expected, and Descovy rose 49% to $1.0 billion. CEO Daniel O'Day said HIV prevention sales nearly doubled, with the newer prevention drug Yeztugo selling $305 million against $39 million a year earlier.

Gilead now guides 2026 product sales of $31.0 billion to $31.3 billion, up from $30.1 billion to $30.4 billion, its third raise this year and $1.6 billion in total since January, O'Day said. It widened its non-GAAP EPS guidance to a loss of $1.20 to $0.85, from a loss of $0.65 to $0.30. The press release says that range includes about $9.88 per share of acquired IPR&D charges totaling $12.4 billion, tied to the Arcellx, Tubulis, Ouro Medicines and PepStar deals. Q3 itself carried only $18 million of that expense, so the wider loss reflects deal accounting, not weaker operations.

Elsewhere, Trodelvy sales rose 42% to $506 million, liver disease sales rose 13% to $927 million, and cell therapy fell 18% to $355 million on competition. Veklury sales fell 69%, and Gilead still guides about $300 million for the year.

The main longer-range item is Medicare. Biktarvy was one of 15 drugs in the third round of Inflation Reduction Act price negotiations, and the Maximum Fair Price of $2,600 for a 30-day supply cuts Medicare's price by 38% from Jan. 1, 2028. CFO Andrew Dickinson said it will reduce 2028 Biktarvy sales by about $1.5 billion, though Gilead still expects overall HIV revenue to grow versus 2027. Watch how fast Yeztugo scales before then, and whether HIV growth holds as inventory effects fade, a question an RBC analyst raised.