Gilead 2026 outlook short of Wall Street view, shares dip

By Deena Beasley

Feb 10 (Reuters) – Gilead Sciences on Tuesday issued a 2026 financial forecast that was at the low end of analysts’ expectations, including sales of its pioneering twice-yearly HIV prevention drug, and its shares fell nearly 2%.

The California-based biotech also reported fourth-quarter 2025 sales and profit that came in slightly above Wall Street estimates.

Quarterly sales of HIV prevention drug Yeztugo, which was launched in the U.S. last year as a twice-yearly injection, totaled $96 million, beating the $88 million forecast by Wall Street, according to LSEG data. Gilead said it expects 2026 Yeztugo sales of $800 million, while analysts have forecast $907 million.

RBC Capital Markets analyst Brian Abrahams said the Yeztugo forecast “fell short of the ‘whisper’ investor expectation of $1 billion.”

The drug was shown in clinical trials to be nearly 100% effective at preventing HIV, raising new hope of interrupting transmission of a virus that infects 1.3 million people a year globally.

But some have balked at Yeztugo’s annual U.S. list price of about $28,000. Gilead said that so far 90% of U.S. payers have agreed to cover the drug.

“We are definitely assuming continued strong momentum for Yeztugo,” Gilead Chief Commercial Officer Johanna Mercier said on a conference call. She declined to comment on whether the company is offering insurers discounts or rebates off of the list price.

Gilead shares, which fell 3% in regular trading, were down about 2% after hours at $144.52.

In an interview, CEO Daniel O’Day said Gilead trimmed its outlook for 2026 sales growth by about 2 percentage points due to a pricing agreement with the Trump Administration and uncertainty about the number of people who will retain insurance coverage under Affordable Care Act plans now that some government subsidies have expired.

O’Day said the company’s HIV sales, which grew 6% in 2025, would increase by another 6% in 2026.

Gilead said it expects 2026 adjusted earnings per share of $8.45 to $8.85. Analysts have projected earnings of $8.75 per share, 10 cents higher than the Gilead forecast midpoint.

Gilead foresees 2026 product sales of $29.6 billion to $30 billion, while analysts are looking for $30.2 billion.

For the fourth quarter of 2025, the company posted adjusted earnings per share of $1.86 on revenue of $7.9 billion. Wall Street analysts, on average, expected $1.81 per share and revenue of $7.7 billion.

Quarterly sales of HIV drug Biktarvy rose 5% to $4 billion, coming in ahead of analysts’ estimates of $3.8 billion.

Gilead said sales in its liver disease portfolio rose 17% to $844 million, while sales of cell therapy products fell 6% to $458 million, reflecting more competition. Sales of cancer drug Trodelvy rose 8% to $384 million.

(Reporting By Deena BeasleyEditing by Bill Berkrot)