Gilead Sciences (GILD): Q1 2026 Earnings Beat Estimates, But EPS Guidance Cut Weighs on Shares
Key Takeaways
- Gilead Sciences reported Q1 2026 total revenues of $6.96 billion, up 4% year-over-year and beating consensus estimates of $6.91 billion.
- Non-GAAP diluted EPS came in at $2.03, surpassing expectations of $1.91 and up 12% from $1.81 in Q1 2025.
- HIV franchise sales reached $5.03 billion, a 10% increase driven by Biktarvy and Descovy growth.
- Company raised full-year 2026 product sales guidance to $30.0-30.4 billion but lowered non-GAAP EPS outlook to ($1.05)-($0.65) due to $11.5 billion in acquired IPR&D (in-process research and development) charges from recent acquisitions.
- Stock fell about 1.6-2.7% in after-hours trading despite the earnings beat, reflecting investor concerns over EPS guidance.
- Strong growth in oncology (Trodelvy up 37%) and new launches like Livdelzi highlight base business momentum excluding Veklury.
Understanding Gilead's Q1 Earnings and Their Implications
As someone who follows biotech closely, I view GILD's first quarter 2026 earnings, released on May 7, 2026, for the period ended March 31, 2026, as a key indicator of the company's resilience. Gilead remains a leader in HIV and antiviral therapies, and this report highlights the strength of its core HIV franchise even as Veklury sales from COVID-19 decline and cell therapy faces competition. Investors like me are particularly interested in its push into oncology and inflammation through recent acquisitions such as Arcellx, Ouro Medicines, and Tubulis. In a volatile biotech sector, the 8% year-over-year growth in its base business excluding Veklury shapes how I think about the stock's valuation and long-term strategy in a maturing HIV market.
Diving Into the Reported Numbers
Gilead reported total revenues of $6.96 billion for Q1 2026, which topped consensus estimates of about $6.91 billion and marked a 4% increase from $6.67 billion in Q1 2025. Product sales reached $6.95 billion, up 5%, with sales excluding Veklury climbing 8% to $6.80 billion.
Non-GAAP diluted EPS was $2.03, exceeding expectations of $1.91 and rising 12% from $1.81 a year earlier, thanks to stronger HIV sales and reduced IPR&D expenses. GAAP EPS was $1.61, an improvement from $1.04.
Segment standouts included HIV sales of $5.03 billion, up 10%, led by Biktarvy at $3.36 billion (+7%) and Descovy at $807 million (+38%). In oncology, Trodelvy jumped 37% to $402 million. Veklury dropped 52% to $144 million, and cell therapy sales fell 12% to $407 million. For full-year 2026, the company lifted product sales guidance to $30.0-30.4 billion from $29.6-30.0 billion, but cut non-GAAP EPS to ($1.05)-($0.65) due to $11.5 billion in IPR&D charges from acquisitions, down from the prior range of $8.45-8.85.
Market Reaction and What It Tells Us
Even with beats on revenue and EPS, GILD shares declined 1.6% to 2.7% in after-hours trading on May 7, 2026, ending around $134 after a regular session close near $136. The drop was driven by the significant cut to full-year EPS guidance from those large IPR&D charges, which overshadowed the revenue strength and base business growth. From what I see, sentiment has turned cautious, with attention on integration risks and near-term profitability pressures, though the long-term potential in oncology and inflammation offers some balance.
Looking Ahead: Guidance and Factors I'm Monitoring
Gilead's revised 2026 guidance shows confidence in its core operations, with product sales excluding Veklury now guided at $29.4-29.8 billion, up $400 million at the midpoint from before. Veklury guidance holds at $600 million. The non-GAAP EPS loss projection underscores the acquisition costs, including $11.5 billion in IPR&D from Arcellx (anito-cel for multiple myeloma, PDUFA Dec 2026), Ouro Medicines (inflammation therapies), and Tubulis (ADCs).
One thing that stands out to me is the need to watch HIV momentum, such as the FDA priority review for bictegravir/lenacapavir (PDUFA Aug 2026) and lenacapavir access expansion. Progress in oncology with Trodelvy uptake and Tecartus approvals, plus cell therapy competition, will be critical. I'm also keeping an eye on cost trends, including mid-single-digit R&D increases and SG&A.
Key catalysts ahead include up to four potential product launches and five Phase 3 readouts in 2026, along with quarterly dividends of $0.82 per share. Acquisition integrations could pressure margins, and demand for liver disease treatments like Livdelzi matters amid HCV declines. Broader factors, such as payer mix in HIV and COVID trends, may affect execution. I also checked this using Tickeron’s AI Screener to gauge how GILD stacks up against peers on fundamentals and trends.
Why I Use Tickeron's AI Screener in My Analysis
In my own research process, Tickeron’s AI Screener has become a go-to tool for efficiently scanning stocks and ETFs. It lets me filter thousands of names using customizable criteria like technical patterns, fundamentals, volatility, and AI signals—far quicker than manual methods. For instance, I used it here to identify breakout candidates and compare GILD within biotech on key metrics. It's helped me spot trade ideas and market opportunities more reliably, and I find it enhances my overall analysis without the time sink.
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GILD in -2.15% downward trend, falling for three consecutive days on October 13, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where GILD declined for three days, in 130 of 275 cases, the price declined further within the following month. The odds of a continued downward trend are 47%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GILD as a result. In 36 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 43%.
The Moving Average Convergence Divergence Histogram (MACD) for GILD turned negative on September 24, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In 21 of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at 39%.
Bullish Trend Analysis
Following a +2.94% 3-day Advance, the price is estimated to grow further. Considering data from situations where GILD advanced for three days, in 215 of 336 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
GILD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 161 of 272 cases where GILD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 9 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (15.949) is normal, around the industry mean (19.199). P/E Ratio (17.844) is within average values for comparable stocks, (34.793). Projected Growth (PEG Ratio) (2.263) is also within normal values, averaging (5.738). Dividend Yield (0.021) settles around the average of (0.025) among similar stocks. P/S Ratio (6.053) is also within normal values, averaging (4.033).
The Tickeron Seasonality Score of 10 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 12 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 31 (best 1 - 100 worst), indicating outstanding price growth. GILD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 71 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 96 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a developer of therapeutic products and treatments for life threatening diseases
Industry PharmaceuticalsMajor
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