Gilead (GILD) Tops Q3 Estimates as HIV Sales Grow 18%

Gilead Sciences (GILD) reported third-quarter revenue of $8.30 billion, up 7% year on year, beating the $7.81 billion analysts expected, according to Zacks and to S&P Global data cited by StockStory. Adjusted earnings of $2.55 a share topped the $2.17 Zacks consensus; S&P’s consensus was $2.19. The shares were up 3.0% at $170.55 after hours as of 5:10 p.m. ET, after the results came out following the close.

That came on top of a strong regular session. Gilead rose 4.0% on Thursday to close at $165.61, its highest close in at least a year, before the report was out.

What stood out

HIV drugs did the heavy lifting. Sales in the unit rose 18% to $6.25 billion.

Biktarvy, its main HIV treatment pill, brought in $4.06 billion. Descovy, a daily pill used largely for prevention, grew 49% to $1.05 billion, and Yeztugo, the twice-yearly lenacapavir shot for prevention, reached $305 million. “Our HIV business grew 18% and HIV prevention sales nearly doubled year-over-year,” Chairman and Chief Executive Daniel O’Day said in the release.

Outside HIV, Trodelvy, a breast cancer drug, rose 42% to $506 million, and liver disease sales rose 13% to $927 million. Veklury, the COVID-19 treatment, fell 69% to $86 million, and cell therapy fell 18% to $355 million. Total revenue rose 7%, slower than the 13% growth in product sales, because royalty, contract and other revenues fell, the release showed.

The profit gap between the two measures is wide this quarter. GAAP earnings fell to $1.94 a share from $2.43, mainly because of losses on equity investments, while adjusted earnings rose from $2.47.

The outlook

Gilead raised its 2026 product sales forecast to $31.0 billion to $31.3 billion, $900 million higher at the midpoint. That midpoint sits 1.3% above analysts’ expectations, StockStory reported.

The earnings forecast moved the other way. Gilead now expects an adjusted loss of $1.20 to $0.85 a share, against $0.65 to $0.30 before. The forecast includes about $9.88 a share of charges for research bought in this year’s deals, including Arcellx, Tubulis, Ouro Medicines, and PepStar, whose oral drug program Gilead agreed to buy this quarter.

Our take

This was a clear beat, led by HIV prevention, and a sales forecast raised by more than the quarter’s surprise. The paper loss forecast reflects deal charges rather than the business. Next quarter we’d watch whether Yeztugo keeps adding to HIV prevention sales, and how Gilead prepares for the Medicare price set for Biktarvy under the Inflation Reduction Act.