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.
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