Gilead Sciences began 2026 with revenue and adjusted earnings per share both exceeding Wall Street expectations, reflecting strong commercial execution and demand across its core franchises. Management highlighted robust performance in the HIV segment, particularly from Biktarvy and the PrEP portfolio, as well as continued momentum in oncology with Trodelvy and rapid growth from newly launched products like Yes2Go. CEO Daniel O’Day pointed to disciplined financial management and recent product launches as central to the quarter’s performance, while CFO Andrew Dickinson emphasized that non-GAAP operating margins improved due to expense management and the expiration of certain royalties. Notably, management guided to a large negative adjusted EPS for the full year, driven by the impact of acquisition-related IPR&D charges, a key forward-looking disclosure.
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Gilead Sciences (GILD) Q1 CY2026 Highlights:
- Revenue: $6.96 billion vs analyst estimates of $6.86 billion (4.4% year-on-year growth, 1.5% beat)
- Adjusted EPS: $2.03 vs analyst estimates of $1.91 (6.3% beat)
- Adjusted EBITDA: $4.2 billion vs analyst estimates of $3.56 billion (60.4% margin, 18.1% beat)
- The company lifted its revenue guidance for the full year to $30.2 billion at the midpoint from $29.8 billion, a 1.3% increase
- Management lowered its full-year Adjusted EPS guidance to -$0.85 at the midpoint, a 110% decrease
- Operating Margin: 37.2%, up from 33.5% in the same quarter last year
- Market Capitalization: $165.2 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Gilead Sciences’s Q1 Earnings Call
- Akash Tewari (Jefferies) asked about the value drivers of the Tubulis acquisition, especially in ovarian versus lung cancer. Chief Medical Officer Dietmar Berger emphasized the strong efficacy and safety profile in ovarian cancer, while CFO Andrew Dickinson confirmed ovarian cancer alone justifies the transaction, with lung cancer providing upside.
- Terence Flynn (Morgan Stanley) inquired about Yes2Go’s mix of naive versus switch patients and adherence assumptions. Chief Commercial Officer Johanna Mercier noted strong initial adoption, high coverage, and increasing naive patient uptake, adding that persistency is tracking positively and could surpass existing competitors.
- Salveen Richter (Goldman Sachs) questioned reasons for some Yes2Go users not returning for a second dose and the role of direct-to-consumer campaigns. Mercier acknowledged incomplete data but said early trends are encouraging, and direct-to-consumer efforts are increasing brand awareness and user follow-up.
- Mohit Bansal (Wells Fargo) asked about the commercial opportunity for Biclen in the HIV switch market. Mercier outlined that the product targets patients on complex regimens and those switching from Biktarvy, expecting modest initial launch revenue with a longer-term ramp.
- Alex Lim (Citi) sought clarity on margin sustainability after multiple acquisitions. Dickinson responded that while integration and R&D costs will rise, disciplined expense management and revenue outperformance should support strong margins over time, with more flexibility expected after 2027.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be closely monitoring (1) regulatory decisions for key products like Biclen in HIV and Trodelvy in breast cancer, (2) the pace of integration and progress for newly acquired assets from Arcellx, Tubulis, and Oral Medicines, and (3) continued uptake of Yes2Go and Libdelzi in their respective markets. The timing of pivotal clinical trial readouts and product launches will also be critical in assessing execution on Gilead Sciences’ growth strategy.
Gilead Sciences currently trades at $133.01, in line with $134.06 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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