Gilead Raises Sales Guidance: Strong Demand Offsets Transaction Costs (GILD Q1 2026 Earnings Call)

By Dr. Graph | Updated on May 26, 2026 | earnings

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Gilead Sciences reported a strong start to the fiscal year, driven by robust demand for its HIV and oncology therapies.

Strong HIV and Oncology Demand Drives Base Business Growth

Gilead Sciences delivered robust base business performance in the first quarter of the fiscal year. First quarter base business sales, which exclude Veklury, grew to $6.8 billion, representing an 8% year-over-year increase. Furthermore, non-GAAP diluted EPS rose to $2.03, reflecting strong bottom-line expansion supported by disciplined operating execution.

Commercial Momentum Prompts Upgraded Full-Year Sales Forecast

Management upgraded its full-year outlook to reflect strong commercial momentum. Chief Financial Officer Andrew Dickinson raised full-year total product sales guidance to a range of $30.0 billion to $30.4 billion. Andrew Dickinson stated, "excluding these transaction-related costs, we are effectively maintaining our start of the year non-GAAP EPS guidance."

Strategic Acquisitions Impact Near-Term Reported Profitability

Recent strategic acquisitions of Arcellx, Ouro Medicines, and Tubulis will impact near-term reported profitability. This impact is expected to result in an updated full-year non-GAAP loss of $1.05 to $0.65 per share. The transaction upfront payments represent a $9.50 per share impact on full-year earnings.

HIV Treatment and Prevention Portfolio Drives Segment Outperformance

The HIV business remained the primary engine of Gilead's commercial outperformance, driven by strong treatment and prevention demand. Biktarvy led the segment with first-quarter sales of $3.4 billion as it remains the regimen of choice across major markets. The newly launched prevention drug Yeztugo achieved first-quarter sales of $166 million because of rapid commercial adoption.

Oncology Portfolio Expands on Solid Trodelvy Sales and ADC Pipeline

In the oncology segment, Trodelvy sales reached $402 million due to expanding breast cancer demand in all regions. R&D head Dietmar Berger highlighted the potential of NaPi2b directed ADC drug TUB-040. Dietmar Berger noted that Gilead plans to enter registrational Phase III trials for this candidate in 2027.

Executive Session Highlights Coverage Milestones and Strategic Fit

During the Q&A session, Chief Commercial Officer Johanna Mercier explained that Yeztugo has achieved broad access with 95% of individuals covered in the U.S. Furthermore, Andrew Dickinson addressed analyst Akash Tewari, explaining that the Tubulis acquisition is financially justified by the ovarian cancer opportunity alone.

Frequently Asked Questions

What is driving the revised sales guidance for Yeztugo in fiscal 2026?

The upward revision is driven by strong commercial launch momentum, extensive insurance coverage, and strong demand across both Switch and naive prevention users.

How do the recent acquisitions of Arcellx, Ouro Medicines, and Tubulis impact Gilead's reported full-year profitability?

The transactions impact near-term reported profitability due to substantial upfront payments and financing costs, though the core commercial business performance remains strong and offsets operational R&D increases on an earnings basis.

When does Gilead expect regulatory decisions and initial revenues for BIC/LEN and anito-cel?

Gilead expects a U.S. regulatory decision for the once-daily BIC/LEN tablet in late August. The target PDUFA date for the multiple myeloma cell therapy is in late December, with initial revenues expected to begin in the following year.