Gilead Sciences set for earnings shift as HIV sales buoy investor sentiment
Analysts project a diluted loss of $7.09 per share for the quarter, a sharp decline from last year’s profit, yet shares have risen 23.1% over the past year driven by Biktarvy and Yes2Go sales.
Gilead Sciences is preparing to release its fiscal second-quarter 2026 earnings results, with analysts anticipating a significant contraction in profitability. The Foster City-based biopharmaceutical company is expected to report a diluted loss of $7.09 per share, marking a 452.7 per cent decline from the $2.01 profit recorded in the same period last year. For the full fiscal year 2026, the consensus view points to a loss of $0.77 per share, a 109.5 per cent drop from the $8.15 reported in fiscal 2025.
Despite the projected earnings decline, Gilead’s shares have risen 23.1 per cent over the past 52 weeks, outperforming the S&P 500 Index’s 18.2 per cent gain and the State Street Health Care Select Sector SPDR ETF’s 20.8 per cent return. This market resilience is attributed to strong execution across its HIV, oncology, and liver disease portfolios. HIV sales grew year-on-year, driven by the established strength of Biktarvy and U.S. PrEP, alongside the rapid launch of Yes2Go, a twice-yearly injectable treatment.
Management has guided for a full-year adjusted earnings per share loss, citing Intellectual Property and Research & Development (IPR&D) costs associated with the Arcellx deal and pending acquisitions. The company expects full-year loss per share to fall within the range of $1.05 to $0.65. Looking further ahead, analysts anticipate a significant recovery, with EPS expected to rise to $9.73 in fiscal 2027 as the company focuses on pipeline execution and integration to drive long-term growth.
Gilead has demonstrated a consistent ability to beat market expectations, surpassing consensus estimates in each of the last four quarters. In the first quarter, the company reported adjusted EPS of $2.03, exceeding Wall Street forecasts of $1.89, while revenue of $7 billion surpassed expectations of $6.9 billion. Although shares closed down more than 1 per cent following the Q1 report on May 7, the broader trend has favoured investors, with the stock maintaining its outperformance against major indices.
Analyst sentiment remains overwhelmingly positive, with a 'Strong Buy' consensus among the 30 analysts covering the stock. Twenty-two analysts advise a 'Strong Buy', two suggest a 'Moderate Buy', and six give a 'Hold'. The average analyst price target is set at $158.72, implying a potential upside of 19.2 per cent from current levels, reflecting confidence in the company’s strategic direction despite near-term accounting headwinds.
