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Tuesday, February 10, 2026
Will Gilead's Solid Fourth Quarter Be Enough To Shake Off Its Light Outlook?
Less than two months into 2026, shares of Gilead Sciences are already outpacing the most talked-about pharmaceutical companies. Its fourth-quarter earnings, disclosed Tuesday, could convince some investors the strength was warranted.
After the closing bell, the biopharmaceutical company posted adjusted earnings of $1.86 a share, which outstripped analysts’ calls for $1.81. Quarterly revenue increased 5% to $7.9 billion, beating the $7.7 billion consensus call on Wall Street.
Gilead attributed the change to higher sales of HIV and liver-disease products, which were partially offset by lower sales of Veklury, its Covid-19 antiviral. Excluding Veklury, product sales rose 7% to $7.7 billion.
Biktarvy, Gilead’s once-a-day HIV treatment regimen and its biggest moneymaker, brought in $4 billion in the fourth quarter, a 5% increase from the same period last year. Analysts had been expecting $3.8 billion. Sales of Descovy, Gilead’s pre-exposure prophylaxis pill, surged 33% to $819 million, blowing past the $715 million the Street had anticipated.
Gilead’s cell-therapy portfolio was a laggard. Sales fell 6% to $658 million, reflecting “ongoing competitive headwinds,” the company said. Sales for blockbusters Yescarta and Tecartus declined 6% and 9% from last year, respectively.
It was a continuation of a downward trend for cell-therapy treatments. Third-quarter sales fell year over year as well as sequentially. CEO Daniel O’Day said at the time that competitive headwinds would likely persist in the near future.
Strength in HIV products, Gilead’s core business, was expected to be partially offset by a 10% decline in full-year sales of cell therapies, O’Day said in October. Sales for the portfolio ultimately fell 7% in 2025.
Full-year guidance was light. For 2026, the company is targeting adjusted earnings of $8.45 to $8.85 a share. Analysts were looking for $8.79 a share.
Gilead sees product sales between $29.6 billion and $30 billion in 2026. The Street has forecast $29.9 billion, above the midpoint of the range.
Shares declined 5.7% to $139.45 following the report. Industry peers Pfizer and Johnson & Johnson were down slightly and flat, respectively.
Gilead’s reputation as a leader in HIV treatments may cause analysts to overlook weakness in other parts of the portfolio. Much of the conversation in 2025 centered around the launch of Yeztugo, Gilead’s twice-yearly HIV prevention therapy.
Yeztugo made its U.S. debut last June and logged $39 million in sales in the third quarter, helping to boost the company’s profit. The product brought in $150 million in 2025. Analysts are counting on the drug to become one of Gilead’s top sellers over time.
Also on Tuesday, Gilead announced a 3.8% increase in its quarterly cash dividend, resulting in a quarterly dividend of 82 cents per share of common stock.
Shares had gained more than 20% this year heading into the report, outperforming the broader market as well as Eli Lilly and Novo Nordisk, whose businesses center on weight-loss drugs.
As an oncology and HIV play, Gilead has been immune to the increasing competition that has caused those stocks to whipsaw. The biopharma company was named a Barron’s stock pick in October.
House Republicans subpoena 8 insurers over ACA fraud protection measures
Republicans on the House Judiciary Committee have subpoenaed eight insurers for documents outlining their measures to head off fraud related to Affordable Care Act subsidies.
The information demands follow an attempt from the Trump administration over the summer to enact new guardrails on improper enrollments, which was paused by the courts amid ongoing litigation. The Republican committee heads said their inquiries could help unstuck that regulatory effort.
Concerns over incentivizing enrollment fraud have been central to Republicans’ argument against extending the advanced premium tax credits (APTC) that expired at the end of last year. That position was galvanized in December when a Government Accountability Office (GAO) report outlined the ease with which its researchers were able to receive approvals for fake coverage applications.
Monday’s subpoenas are an escalation for the committee’s Republicans, who had requested the insurers provide such information voluntarily back in December. Individual cover letters to the insurers accompanying the subpoenas, which were shared by the committee, describe insurers’ varying levels of compliance to the initial information requests.
The insurers who were sent a subpoena are: Blue Shield of California, Centene Corporation, CVS Health, Elevance Health, GuideWell, Health Care Service Corporation, Kaiser Permanente and Oscar Health.
Reps. Jim Jordan (R-Ohio), chairman of the House Judiciary Committee, and Scott Fitzgerald (R-Wisconsin) and Jeff Van Drew (R-New Jersey), who chair relevant subcommittees, wrote that the insurers’ responses would “inform potential legislative reforms” to the Administrative Procedure Act (APA), the law a federal judge said the administration likely ran afoul when finalizing new regulations back in June.
That final rule would have introduced various hurdles to address “the surge of improper enrollments” on ACA exchanges. These included the elimination of special enrollment periods that allowed people earning 150% or less of the federal poverty level to secure coverage, new calculations around plan tiers and requirements for pre-enrollment eligibility checks for special enrollment periods and a $5 premium penalty on auto-enrollments.
After multiple large cities and other organizations sued to block the regulation, Judge Brendan Hurson, of the Maryland District Court and an appointee of President Joe Biden, issued a preliminary injunction against several of the measures in August. Hurson determined that plaintiffs were likely to succeed in challenging seven of the regulation’s provisions under the APA, yielding at least a short-term pause that the administration has appealed.
The committee lawmakers, in their subpoena letters, said the information from insurers would help determine “whether reforms are needed to the APA to allow for effective implementation of regulations that address Obamacare fraud.”
The GAO, in its December report and an accompanying letter to lawmakers, said it identified at least 30,000 applications submitted in plan year 2023 and at least 160,000 applications for 2024 that likely included changes made by brokers or agents that were not authorized. The watchdog also found that more than 29,000 numbers in 2023 and 68,000 numbers in 2024 were used to receive more than a single year's worth of coverage, including tax credits.
The GAO noted that the Centers for Medicare and Medicaid Services received approximately 275,000 complaints between January and August 2024 that consumers were enrolled in an ACA plan or had coverage adjusted without their consent. The office also pointed to Justice Department indictments from late 2024 and early 2025 alleging bad actors enrolling consumers by falsifying information on their applications.
“Such practices can result in wasteful federal spending on APTC for enrollees who are not eligible,” the GAO wrote to lawmakers. “Further, such practices can result in harm and unexpected costs for consumers. These can include loss of access to medical providers and medications, higher copayments and deductibles, or repayment of APTC if income or other eligibility was misrepresented.”
Incyte 2026 outlook assumes no incremental Jakafi XR revenue
Incyte posts Q4 revenue of $1.51B topping estimates while adjusted EPS of $1.80 misses, with total revenue up 28% in Q4 and 21% for FY2025, and guides 2026 net product revenue to $4.77–$4.94B; on its call, it said Jakafi XR is expected to be approved and launch in mid‑2026 and that its 2026 outlook assumes no incremental XR revenue.
- 2025 revenue grew 21% to $5.4B; product sales up 20%, above guidance and expectations.
- Jakafi 2025 sales rose 11% to $3.09B; 2026 growth slows to mid‑single digits pre‑LOE.
- Core business ex‑Jakafi grew 53% to $1.26B; guided to ~30% growth in 2026.
- Opsilura sales up 33% to ~$678M; 2026 guide implies ~15% growth amid pricing for access.
- Hematology/oncology portfolio grew 83% to $583M; 2026 guide implies 40–50% growth.
- 2026 total revenue guided to $4.77–$4.94B, +10–13% YoY, despite lower milestone revenue.
- Late‑stage pipeline expanded to 14 pivotal trials by year‑end 2026 across 7 key assets.
- Povorcitinib for HS filed in US/EU; positioned as first oral HS option, targeting pre‑biologic use.
- Operating expense growth held to ~4% in 2026, driving continued operating leverage.
- Key risk: execution on multiple Phase III trials and launches to replace Jakafi post‑2028.
- Strong quarter, driven by broad‑based product growth and outsized expansion of the ex‑Jakafi portfolio. Main concern: flawless execution on a crowded 2026–2028 launch and pivotal trial slate to offset eventual Jakafi loss of exclusivity.
Quest ups 2026 outlook
Quest Diagnostics reports Q4 and full-year 2025 results with strong organic growth and margin expansion despite investments, raises its 2026 outlook, hikes the quarterly dividend 7.5% to $0.86, and expands its share repurchase authorization by $1B.
- Double‑digit full‑year EPS and revenue growth driven by strong organic volumes and advanced diagnostics.
- Q4 revenue $2.81B, +7.1% YoY; organic revenue +6.4%, volume +7.9% organically.
- Consumer business reached ~$250M in 2025, growing >20%, with questhealth.com at ~$100M run rate.
- Advanced diagnostics in Alzheimer’s, autoimmune, cardiometabolic and oncology delivered double‑digit growth.
- 2026 revenue guidance $11.7–$11.82B (+6–7.1%),
- adjusted EPS $10.50–$10.70, implying margin expansion.
- Corewell Co‑Lab to add ~$250M revenue in 2026 at low single‑digit margins, ramping to low‑teens in 2027.
- Project Nova to dilute 2026 EPS by ~$0.25, partly offset by Invigorate 3% cost‑savings program.
- PAMA cuts delayed again to end of 2026; company pushing RESULTS Act for structural reform.
- Cash from operations fell in 2026 guidance due to loss of ~$270M prior‑year and payroll one‑time benefits.
- Management tone confident; emphasizes share gains, stable pricing, and sustained high‑single‑digit organic growth.
- Strong quarter, driven by broad‑based organic growth, high‑margin consumer testing, and advanced diagnostics. Main concern: near‑term margin drag from low‑margin Corewell ramp, Project Nova spend, and dialysis mix even as cash flow normalizes lower from 2025 one‑time benefits.
CVS Reiterates 2026 Profit Outlook, Shares Slide 3.7% Despite Q4 Beat
CVS Health Corp (CVS, Financial) unsettled investors after management chose to reiterate its 2026 profit outlook, a decision that came despite a stronger-than-expected fourth quarter. The company said it continues to expect adjusted earnings of $7 to $7.20 a share in 2026, with the midpoint landing below the average analyst estimate. That restraint weighed on early trading, with shares falling as much as 3.7% at the New York open before recovering some ground, as the guidance did not move meaningfully above what the market had already priced in.
Analysts at Leerink Partners and TD Cowen characterized the update as underwhelming but pointed to a deliberate tone from management as conditions across the insurance industry remain unsettled. Other insurers have struggled to forecast medical costs, and that uncertainty has begun to show up in longer-term outlooks. UnitedHealth Group Inc. recently projected declining revenue in 2026 for the first time in more than three decades, underscoring how volatile the environment has become. CVS also continues to face scrutiny from lawmakers and regulators in Washington, with US President Donald Trump calling on insurers to lower prices, adding another layer of pressure to an already complex operating backdrop.
Within that context, CVS is signaling incremental progress rather than acceleration. At an investor day in December, the company said all three of its segments — insurance, pharmacy, and drug-benefit management — are expected to expand in 2026, marking a notable shift for its retail drugstores, where profitability had previously been expected to shrink. Medicare Advantage enrollment declined slightly for 2026, in line with expectations, while management said margins in the Medicare business should increase. CVS also trimmed its operating cash flow outlook to at least $9 billion, down from a prior estimate of at least $10 billion, citing the timing of certain payments. The guidance update followed a fourth quarter in which adjusted earnings reached $1.09 per share and revenue climbed to $105.7 billion, both exceeding average analyst estimates, suggesting near-term execution remains intact even as longer-term visibility remains constrained.
Massive, illegal NYC encampment near Citi Field drains water, swipes power, runs illicit biz
Dozens of families are illegally living in dilapidated trailers in the shadow of Citi Field — draining off water from fire hydrants and swiping electricity while running black-market auto repair shops.
The unsightly, gypsy-like encampment under the Whitestone Expressway, populated largely by Spanish-speaking migrants, has become a nightmare for residents and merchants along a stretch of Queens near the New York Mets’ home field — yet the city has done nothing, locals told The Post.
“We gave up calling the police,” Luke Huwang, manager of Empire State Autobody on Northern Boulevard, told The Post on Monday. “The police don’t touch them. The police will take their customers’ cars and impound them, but they leave the motorhomes and all these people here.
“They drink a lot,” Huwang said of the illicit street dwellers.
“And they do the barbecue when the Mets play. They pull the electricity from the light poles and from above, you know, the underside of the roadway.”
Neighborhood regulars said the intruders tap into fire hydrants to bathe and run illegal car washes, auto body and auto repair shops — mostly overnight to avoid harassment from the NYPD.
They live in nearly two dozen rundown RVs, motor homes and campers between 126th Street and 127th Place along Northern Boulevard — with only one of the vehicles seen with a legal license plate.
“The whole area is bad,” said a man who claimed he lived in an RV in Marina Park for eight months. “Real dangerous. Especially at night, real dangerous. Who the f–k is calling the cops?
“They settle things with machetes around here,” he said. “It’s more than a year. It’s not quite two years yet, but it’s more than a year since it started here.”
Residents of the unsightly community declined to comment to The Post, most of them claiming they did not speak English as they roamed the area and slipped into a local liquor store.
Neighbors said the encampment grew out of a row of auto shops and apartments that were displaced by the development of the new $780 million soccer stadium next to Citi Field — with some taking the money from their buyout to move to the Bronx, but others moving under the expressway overpass.
The new field, set to open next year, will be the new home of New York City FC soccer team.
At first there were about 10 campers, but the number grew to nearly 100 over the past year, locals said.
Cops have raided the black-market shops and towed away their customers’ vehicles, but the savvy illegal business owners now simply wait until night to open for business, operating without police scrutiny.
“They started living here full-time little over a year ago,” said Brian Jung, who owns Ryan Auto Inc., a legal shop, on Northern Boulevard. “You can see here they’re opening up the base of the electrical poles and they’re running wires over to do their work and to live in those motor homes.
“In the summertime, yeah, they do they open up all the fire hydrants,” Jung said.
“They open them up, and they just leave them all open, and they take showers. Yeah, it’s kind of wild. It’s been growing but I don’t know how many more they could fit. I guess they could squeeze in a few more.”
The NYPD did not respond to a Post request for comment.
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