Gilead Raises 2026 Sales Outlook Again as HIV Revenue Climbs 18%

Gilead Sciences raised its full-year sales forecast for the second straight quarter on Thursday after its HIV franchise grew 18% in the third quarter, with sales of its HIV prevention medicines nearly doubling from a year earlier, according to the earnings release it filed with an 8-K after the market close.

The biopharmaceutical company now expects 2026 product sales of $31.0 billion to $31.3 billion, up from a previous range of $30.1 billion to $30.4 billion. Excluding the COVID-19 antiviral Veklury, it sees product sales of $30.7 billion to $31.0 billion, up from $29.8 billion to $30.1 billion.

HIV leads the quarter

Total product sales rose 13% to $8.3 billion, and product sales excluding Veklury climbed 16% to $8.2 billion. Total revenue rose 7% to $8.30 billion from $7.77 billion, as royalty, contract and other revenue fell to $11 million from $424 million, when the prior year included revenue tied to an earlier sale of intellectual property.

HIV product sales increased 18% to $6.2 billion, helped by higher average realized prices, stronger demand in HIV prevention and favorable inventory dynamics. Biktarvy sales rose 10% to $4.1 billion, while Descovy jumped 49% to $1.0 billion.

"Gilead delivered an exceptional third quarter, with our strongest year-over-year base business growth in more than a decade," Chairman and CEO Daniel O'Day said in the release. He said the latest raise brings the total increase in full-year base business revenue guidance to $1.6 billion since the start of 2026.

Elsewhere, cancer drug Trodelvy sales rose 42% to $506 million and the liver disease portfolio grew 13% to $927 million. Cell Therapy sales fell 18% to $355 million, which the company attributed to ongoing competitive headwinds, and Veklury sales dropped 69% to $86 million on lower COVID-19-related hospitalizations.

Profit falls on a GAAP basis

Net income declined to $2.43 billion, or $1.94 a diluted share, from $3.05 billion, or $2.43 a share, a year earlier. Gilead said the drop mainly reflected net losses on equity securities compared with gains a year ago, along with higher operating and tax expenses and lower royalty revenue.

Non-GAAP diluted EPS rose to $2.55 from $2.47. Product gross margin widened to 81.0% from 78.6%, which the company said was primarily driven by the expiration of a royalty-related obligation.

Acquisition charges weigh on EPS guidance

Gilead widened its expected full-year loss. It now projects a GAAP diluted loss of $4.05 to $4.40 a share, compared with $3.40 to $3.75 previously, and a non-GAAP diluted loss of 85 cents to $1.20 a share, compared with 30 to 65 cents. The guidance includes an impact of about $9.88 a share from $12.4 billion of acquired in-process R&D charges tied to the Arcellx, Tubulis, Ouro Medicines and PepStar transactions announced this year.

In the quarter, Gilead agreed to acquire PepStar Therapeutics' oral IL-23R inhibitor program and received FDA approval for Bixlenvo, a single-tablet HIV regimen for virologically suppressed adults.

The company also disclosed that the Centers for Medicare and Medicaid Services completed setting the Maximum Fair Price for Biktarvy under Medicare, with the new price set to affect Biktarvy revenue starting Jan. 1, 2028.

Cash and dividend

Gilead generated $5.0 billion of operating cash flow in the quarter, paid $1.0 billion in dividends and repurchased $370 million of stock. Cash, cash equivalents and marketable debt securities fell to $6.4 billion at Sept. 30 from $10.6 billion at the end of 2025, reflecting $11.3 billion of acquisition outflows this year.

The board declared a fourth-quarter dividend of 82 cents a share, payable Dec. 30 to stockholders of record on Dec. 15.

Sources

1. Gilead Sciences Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000882095-26-000037)

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