Gilead ups 2026 sales forecast, cuts profit outlook after acquisitions

• First-quarter revenue rose 4% to $6.96 billion, beating estimates of $6.91 billion, with adjusted EPS of $1.85 exceeding the $1.69 consensus
• Lenacapavir sales reached $166 million in Q1, surpassing Wall Street's $143 million forecast, prompting the company to raise 2026 sales guidance by $200 million to $1 billion
• The company expects an $11.5 billion second-quarter charge related to recent acquisitions; excluding this charge, the earnings forecast would remain unchanged according to CFO Andrew Dickinson

Summary

Gilead Sciences reported stronger-than-expected Q1 2026 results on May 7, but announced it now expects a full-year loss due to recent acquisition costs.

Key Financial Highlights:

• Q1 adjusted earnings: $2.17 per share, beating estimates of $1.98
• Q1 revenue: $6.96 billion, up 4% year-over-year (vs. $6.91 billion expected)
• Q1 net income: $1.61 per share

2026 Outlook:

• Raised overall sales forecast by $400 million to $30-30.4 billion range
• Now expects adjusted loss of $1.05-$0.65 per share for the year
• Loss driven by $11.5 billion in second-quarter charges related to acquisitions of Arcellx, Curon Biopharmaceutical, and an unnamed cancer drug developer
• CFO Andrew Dickinson noted earnings forecast would be unchanged excluding acquisition charges

Product Performance:

• HIV prevention drug (launched 2025): Q1 sales of $166 million exceeded $143 million forecast; 2026 sales outlook raised to $1 billion from $800 million
• Biktarvy (HIV drug): Q1 sales rose 7% to $3.36 billion
• Trodelvy (cancer drug): Q1 sales surged 37% to $402 million
• Liver disease portfolio: Sales up 1% to $767 million
• Cell therapy products: Sales down 12% to $407 million due to increased competition

Market Implications:

CEO Daniel O'Day highlighted "demand-driven growth across all business areas," suggesting underlying business strength despite acquisition-related financial impacts. The mixed guidance reflects strategic investment in expanding Gilead's oncology and autoimmune disease portfolios while maintaining solid core HIV franchise performance.