10-Q · May 7, 2026
Gilead Sciences reported Q1 2026 results with revenue of $6.96 billion, marking a 4% increase from $6.67 billion in Q1 2025, and EPS of $2.03, surpassing estimates of $1.91. Key growth drivers included a 10% increase in…
Earnings analysis · 10-Q
GILD earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Gilead delivered a strong top-line quarter, with revenue of $8.300 billion, product sales excluding Veklury up 16% to $8.203 billion, and free cash flow of $4.798 billion. However, GAAP diluted EPS of $1.94 missed the…
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Gilead delivered a strong top-line quarter, with revenue of $8.300 billion, product sales excluding Veklury up 16% to $8.203 billion, and free cash flow of $4.798 billion. However, GAAP diluted EPS of $1.94 missed the $2.18 consensus, and full-year GAAP and non-GAAP loss guidance was lowered despite a $31.0-$31.3 billion product-sales outlook. The combination of strong HIV-led base-business growth and worsening earnings guidance supports a neutral assessment.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $1.94
What stood out
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Revenue beat, but GAAP EPS missed
Third-quarter revenue was $8.300 billion, $495 million above the $7.805 billion consensus estimate, while reported GAAP diluted EPS was $1.94 versus the $2.18 estimate.
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Base business growth accelerated
Product sales excluding Veklury increased 16% year over year to $8.203 billion, indicating strong underlying base-business momentum led by the HIV franchise.
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Strong quarterly cash generation
Quarterly free cash flow was $4.798 billion, providing substantial internal funding despite strategic transaction spending and ongoing investment.
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Product-sales outlook raised
Full-year product-sales guidance increased to $31.0-$31.3 billion from $30.1-$30.4 billion, a $0.9 billion increase at both the low and high ends.
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Substantial buyback capacity remains
The company authorized a $6.0 billion 2025 repurchase program; $5.659 billion remained available at September 30, 2026, after 2.645 million program shares were repurchased during the quarter.
What to watch
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Earnings outlook worsened
Full-year GAAP diluted-loss EPS guidance was reduced to $(4.40)-$(4.05) from $(3.75)-$(3.40), while non-GAAP diluted-loss EPS guidance was reduced to $(1.20)-$(0.85) from $(0.65)-$(0.30).
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Biktarvy pricing pressure
CMS selected Biktarvy for Maximum Fair Price determination effective January 2028, and the filing states the price is substantially lower than Gilead's current Medicare price, creating potential pressure on rebates, reimbursement and profitability.
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Tariffs and heavy investment burden
The company disclosed 100% tariffs on patented pharmaceutical products and associated ingredients beginning in July 2026, while also undertaking a stated $32 billion U.S. investment through 2030; tariffs could raise manufacturing costs and the investment program could increase capital and operating expenses.
Management's outlook
Mixed outlook: full-year product-sales guidance was raised to $31.0-$31.3 billion from $30.1-$30.4 billion, while GAAP diluted-loss EPS guidance was lowered to $(4.40)-$(4.05) from $(3.75)-$(3.40). Non-GAAP diluted-loss EPS guidance was lowered to $(1.20)-$(0.85) from $(0.65)-$(0.30); Veklury guidance remained approximately $300 million.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.